By Kathryn H. Kellam (Katie), Esq.

BWW Law Group, LLC *

USFN Member (DC, MD, VA)

On September 16, 2025, USFN held an installment of its briefing series focusing on various emerging topics in the REO/Eviction sphere of the default industry. Both new and seasoned professionals gained valuable knowledge from the panel, which focused on national and state-based themes. The goal of the session, titled “REO/Eviction Refresher & Hot Topics Under a New Administration,” was to touch on the fundamentals of this practice area and enlighten attendees on current issues affecting post-sale processes nationwide.

Roy A. Diaz (Diaz | Anselmo) moderated the panel. He was joined by panelists Joe Hawk (Walentine O’Toole, LLP), Stuart Gordon (McCalla Raymer Leibert Pierce, LLP), and William R. Jarrell (Aldridge Pite, LLP). All of the panelists brought an abundance of knowledge and information to the virtual briefing space and created a plethora of opportunities for future in-depth discussions regarding the evolving post-sale landscape.

The panel kicked off with a discussion of legislative efforts aimed at squatters in REO properties. Legislatures across the country have passed new laws detailing expedited procedures for removing squatters from properties, which is welcome news when it comes to handling REO portfolios. Many of the new laws went into effect in July of 2025. Traditionally, laws throughout the nation have favored squatters. However, the presence of squatters blocks vacant properties from being marketed, sold, or rented in a timely fashion. Lawmakers have taken note of the delays that occur as a result of squatters, with worsening housing supply shortages in a constrained market bringing some of these issues to the forefront.

Vexatious Litigants are another area of recent legislative concern on which the panel focused. Repeated baseless filings by borrowers and related parties continue to delay closings and evictions in the months after a foreclosure sale. A handful of states have recently explored passing litigation to curb the problems brought on by such litigants, including the unnecessary delays and great expenses of handling lawsuits and counter-claims brought by these individuals. While only a few states have passed legislation so far, including California, Illinois, and Nevada, other legislatures are working through proposed legislation on this topic, which could serve to curb the frivolous motions, delays, and abusive tactics of vexatious litigants nationwide.

In order to effectively handle post-sale matters, the panel turned to a refresher of the REO and Eviction processes, focusing on post-pandemic trends and emerging compliance considerations under the new presidential administration. This discussion was well-tailored to professionals of varying experience levels, as the panel touched on the basics of what happens post-foreclosure sale and the myriad of issues that could arise at each step in the process, especially as there are lingering backlogs from pandemic and new tenant protection statutes that have been passed in many jurisdictions. The panel also addressed the evolving landscapes of the CFPB, HUD, Veterans Affairs, and the USDA, opining on what lies ahead for the agencies for the remainder of 2025 and into 2026.

Finally, the panel shed light on issues that arise with third party vendors assisting with REO properties and recommended best practices for their use. The panel highlighted the need for strong indemnity provisions and to ensure that vendors understand state specific limits – as a one-size-fits-all 50-state approach is often ineffective when it comes to post-sale matters.

As the panel noted, “[t]he REO and eviction space is being reshaped by policy, politics, and public sentiment.” Proactive strategies, good legal foresight, and staying well-informed of developments in this area of law are the keys to success in managing REO portfolios in the months and years to come. USFN continues to provide vital educational resources to help the industry meet these challenges. For more on upcoming briefings, compliance events, and digital tools—including the USFN Source platform—visit usfnevents.org or explore the member directory to connect with experts in this space.