THREE UPDATES FOR COMPUTER/SERVICE ISSUES IN S&E NORTHERN FOOTPRINT

City of Baltimore Hacking Vulnerability Precludes City from Issuing Lien Certificates

The City of Baltimore has reported that its computer systems are  undergoing a “ransomware” attack.  As a result of the issue, the City is unable to generate lien certificates attesting as to the outstanding amounts due to it for utility services for any given property within the City limits - information that is generally required in order to safely finalize the deed recording process. While the City has not precluded deed recordings, any deed recording is subject to the risk that there may be a utility lien(s) on the property, which would then become the financial obligation of the recipient of the property.  
Given the probability of risk associated with recording deeds absent knowledge of the sum of a utility lien, if any, we recommend that deed recordings be limited to priority files, high value loans, or GSE files where waiting may be too costly, and only if you are willing to accept the risk.  Otherwise, we suggest that you cease deed recordings until the City’s computer issues have been fully remediated. We will advise you as soon as the City alerts the public that the issue has been fixed.  

That being said, until the issue is fixed, if you accept the risk that liens may be existing on the property that you take by deed, which cannot be confirmed until some time after recording the deed, we will assist you with having the deed recorded. 

Questions about this S&E Client Alert?
If you have any questions regarding this matter, please reach out to our Value Department at sevalue@sterneisenberg.com to be routed to the appropriate attorney. ​

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Philadelphia County Court Procedures and Sheriff Sales also Offline, Affected by Virus

​UPDATE: Philadelphia Sheriff’s Sales are cancelled June 4, 2019.  Sales will be postponed until either July or August.

This notification is to advise of the current status of Court Procedures and Sheriff Sales in Philadelphia County.  The computer system for Philadelphia Civil Court has been attacked by a virus and has been offline for a number of days.  The Court has not been able to access its emails, calendars, pleadings or dockets during this time.  Currently, it is not possible to electronically file any documents with the Court or monitor the dockets of any active cases.  The Court is however accepting some filings such as complaints, motions, responses and stipulations which may be filed in person with the Court.  Currently, the Court is not accepting judgments or writs.  Additionally, hearings that have already been scheduled are still being heard by the judges to the extent they are able to proceed without access to the dockets, but few new hearings are being scheduled at this time out of an abundance of caution. 
 
Stern & Eisenberg has taken steps to ensure that any filings the court will accept are filed in person with cash remittance for filing fees on a daily basis.  There is no ETA on when the dockets will be fixed.  There is presently a Sheriff sale set for Tuesday, June 4, 2019 that will proceed.  While it is unknown if the sale will ultimately proceed as the date approaches, we recommend all clients prepare as if the sale will occur.  While the courts' systems are down, it is not possible to obtain new or updated title reports as the judgment search is unavailable.  
 
It appears at this time that the Philadelphia Civil Court is the only entity affected by the computer virus.  The Recorder of Deeds and the Tax Division are still able to search and process requests.  We have been advised by our title underwriter that real estate closings scheduled for after June 10, 2019, will not be able to proceed as scheduled. 
 
Stern & Eisenberg is closely monitoring this situation and will continue to provide updates as more information becomes available.  We are prepared to do everything possible to continue to exceed our clients’ expectations.

Questions about this S&E Client Alert?
If you have any questions regarding this matter, please reach out to our Value Department at sevalue@sterneisenberg.com to be routed to the appropriate attorney. ​

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Luzerne County, PA, Sheriff’s Sales Negatively Impacted by Cyber Security Issues

Luzerne County’s outage impacts the offices of the Prothonotary, Recorder of Deeds and Property Assessment.  Similar to the current situation in Philadelphia, filings are accepted in person with cash remittance. Title reports and bringdowns will experience delays.  The Sheriff’s Department cannot access records, resulting in a May 30, 2019 Court Order that postpones Sheriff’s Sales scheduled for June 7, 2019.  The new sale date is June 21, 2019 without need for further notice or advertisement.  Notice of this Court Order will be published in two prominent publications in Luzerne County.  Out of an abundance of caution, Stern & Eisenberg sent letters to the Sheriff’s Department on each individual case impacted by this postponement so that the files are properly documented.
 
Stern & Eisenberg is closely monitoring the Luzerne County situation and will provide further updates as they become available.  If you have any questions, please do not hesitate to contact our Managing Attorney for Pennsylvania, Andrew Marley, Esquire, amarley@sterneisenberg.com.

Questions about this S&E Client Alert?
If you have any questions regarding this matter, please reach out to our Value Department at sevalue@sterneisenberg.com to be routed to the appropriate attorney. ​