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Nov 25, 2008 11:18 pm US/Eastern
Crist Discusses Foreclosure Freeze For Holidays
TALLAHASSEE (CBS4) ―
Gov. Charlie Crist says he wants to work out an agreement with lenders to voluntary suspend foreclosures through the holidays. He says he thinks it's the compassionate thing to do in a tough time.
The governor met Tuesday with Alex Sanchez, president of the Florida Bankers Association. Sanchez says banks are willing to restructure loans for some homeowners, but not for those who have several luxury cars in their driveway.
Florida had the third highest foreclosure rate in the nation in October. Fannie Mae and Freddie Mac are temporarily halting foreclosures and evictions during the holiday season. Many Floridians are already covered by those freezes.
Crist says he's not sure if he has the power to force a temporary halt to foreclosures with an executive order or if it would take an act by the Legislature. He says he would prefer that lenders do it voluntarily. Crist says he hopes to announce a deal next week.
But Crist says his main goal is, "to let them be able to stay in their home, to try to get them the opportunity to renegotiate with their lender, to show some compassion and realize that these are challenging times and people need help."
"It would provide some relief during these difficult times and during the holidays. From a financial point of view it is going to create a tremendous backlog in our judiciary system," said Henry Salum, the CEO of Popular Mortgage.
Some are concerned, however, that a freeze on foreclosures could prompt people to avoid paying their mortgage and just make the situation worse. "That's why meeting with the members of the Association is important to me," Crist said.
Crist would also have to come up with a plan to prevent speculators who bought homes hoping to quickly flip them for a higher price from participating in the deal. "Maybe have it apply to homestead only, instead of some people who were speculating and have several Lexuses in the driveway. I mean, you have to be reasonable about this kind of thing," Crist said.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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