Dec 1, 2008 12:40 pm US/Eastern
Crist: Voluntary Moratorium On Foreclosures
TALLAHASSEE (CBS4) ―
Feeling that struggling homeowners deserve more time and compassion, Governor Charlie Crist has asked Florida banks to stop foreclosures and evictions through the holidays.
After meeting with banking officials last week, Crist unveiled his proposal Monday. The moratorium would be voluntary and would be in effect for 45 days. Crist hope the temporary freeze on foreclosures will keep homeowners in their homes during the holidays and will give them time to renegotiate with their lenders.
"I applaud these bankers and lenders for giving people hope during this challenging economic time," said Crist. "Struggling families and homeowners should rest easier during this holiday season, knowing that these lenders have heard the pleas of homeowners."
Crist said his proposal would focus on homeowners who are in dire situations.
"This is to help people who really need help. This is not for somebody who went and bought a bunch of condos in South Florida in the spec market, and as my friend Alex says all the time, they got a bunch of Lexuses in the driveway. This is to help people that are in a time of need. This is for homesteaded property. People in a home that are providing a roof over their head for their kids and themselves," said Crist.
While the Florida Bankers Association supports the governor's proposal, some mortgage companies and banking officials expressed concern that the moratorium would just be postponing the inevitable.
Alex Sanchez, president and chief executive officer of the Florida Bankers Association, disagrees.
"I applaud Governor Crist's compassionate leadership. His call serves as a reminder of the importance of the holiday season," Sanchez said. "He has reaffirmed for the banking industry in Florida our policy of working with Florida families in their time of need. Our bankers want to work with every Floridian that shows a need, who lives in his primary residence, there's been no mortgage fraud and is willing to enter into a repayment plan."
The Florida Bankers Association and the Florida Credit Union League have appealed to their member institutions to voluntarily cease filing new foreclosure petitions and scheduling foreclosure sales for homestead properties for the 45-day period.
According to RealtyTrac, Florida has the nation's third-highest state foreclosure rate, with 166,600 households statewide being impacted by foreclosure activities in October 2008.
In March, Florida received nearly $1.3 million to support statewide foreclosure prevention counseling efforts. The funds enabled approximately 50 counseling agencies/organizations to provide more foreclosure counseling than ever before to homeowners in danger of foreclosure.
Last September, the U.S. Department of Housing and Urban Development announced that targeted Florida cities and counties were eligible for a total of $541 million in federal Community Development Block Grant (CDBG) funds to help smaller urban and rural communities to respond to rising foreclosures and falling home values.
Monday, the Florida Department of Community Affairs submitted to the U.S. Department of Housing and Urban Development their proposed plan for distributing $91.1 million to local governments so they can purchase foreclosed homes at a discount and rehabilitate or redevelop them.
Click Here to learn more about resources available to Florida homeowners facing foreclosure.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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