Home / News / Foreclosure / Florida Governor Calls for 45-day Freeze on Foreclosures
Print This Post Print This Post

Florida Governor Calls for 45-day Freeze on Foreclosures

Earlier today, Florida Governor Charlie Crist and state representatives of the banking and mortgage lending industry ""announced a voluntary agreement"":http://www.flgov.com/release/10372 to provide foreclosure relief to Florida homeowners for the next 45 days. At a press conference Monday morning, Governor Crist encouraged lenders to continue their efforts to actively negotiate with struggling homeowners during the coming months to help people stay in their homes.
""I applaud these bankers and lenders for giving people hope during this challenging economic time,"" Governor Crist said. ""Struggling families and homeowners should rest easier during this holiday season, knowing that these lenders have heard the pleas of homeowners.""
Alex Sanchez, president and CEO of the ""Florida Bankers Association"":http://www.floridabankers.com, and Aletta Shutes, EVP of the ""Florida Credit Union League"":http://www.fcul.org, and representatives from financial institutions joined Governor Crist in his appeal for foreclosure relief to Floridians. Both Sanchez and Shutes said they have urged their member institutions to voluntarily cease filing new foreclosure petitions and scheduling foreclosure sales over a 45-day period.
Governor Crist commended the lenders for the steps they are already taking to preserve homeownership in Florida. In October, Governor Crist met with representatives from the Florida Bankers Association to discuss Florida's economic situation. Since that time, the Governor's office said lenders have been actively reviewing alternatives to foreclosure.
""Credit unions have always had the philosophy of people helping people,"" said Shutes. ""Governor Crist's call today is an extension of that philosophy.""
Florida has the nation's third-highest state foreclosure rate, with 166,600 homes statewide affected by foreclosure in October, based on market data from ""RealtyTrac"":http://www.realtytrac.com.
According to a local report in the %{=FONT-STYLE: italic}""Jacksonville Business Journal"":http://jacksonville.bizjournals.com/jacksonville/%, the number of homeowners turning to community counseling organizations for assistance has skyrocketed. Last month, the Consumer Credit Counseling Service of Palm Beach County/Treasure Coast had 1,487 homeowners facing foreclosure walk through its doors, up from 377 in 2007 and 58 in 2006, the publication said.
On Monday, the Florida Department of Community Affairs submitted to the ""U.S. Department of Housing and Urban Development"":http://www.hud.gov (HUD) their proposed plan for distributing $91.1 million in federal funds to smaller urban and rural communities to respond to rising foreclosures and falling home values. The funds will go to local governments to purchase foreclosed homes at a discount and rehabilitate or redevelop them.
In September 2008, HUD announced that targeted Florida cities and counties would receive a total of $541 million in federal Community Development Block Grant (CDBG) funds for this purpose - that's more than any other state in the nation, %{=FONT-STYLE: italic}Jacksonville Business Journal% reported.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

Overall Performance of Servicing Portfolios Declined in December

Latest estimates from the MBA find that 115,000 homeowners are now in forbearance plans nationwide, as mortgage servicers have provided relief to approximately 8.1 million borrowers since March 2020.