45 Days Halt in Foreclosure: Happy News for Floridians

The credit unions and the bankers of Florida have made a declaration on December 1 that they are going to call for a suspension on the foreclosed properties in the real estate of Florida for the next 45 days. This is indeed good news for all the distressed homeowners of Florida. A press conference was called by Gov. Charlie Crist where the declaration was made. However, it is not known by either him or Alex Sanchez, president of Florida Bankers Association that how far people facing foreclosure will get help from this program. Florida owns the credit of having the third-highest rate of foreclosure in the nation.

This freezing on foreclosed properties for the next 45 days is not going to be of any help to the 444,000 homeowners those who are stuck up in the process of foreclosure. Crist said about some issuing of executive order for halting foreclosures last week. However, this moratorium is going to take under its purview only those homeowners who have a homesteaded property and need help. In Crist’s own words, "This is to help people in a time of need. This is not for somebody who went and bought a bunch of condos in South Florida on the spec market."

Sanchez talking about Monday announcement of Crist said that it was "a reaffirmation of our past practice and current practice." He extended his thanks to the governor for his compassionate leadership during this time. However, Sanchez also suggested that the banks of Florida, with or without Crist, decided to stop foreclosures as they were not looking forward to getting sandwiched between so many properties and debt pressures. The people who are in search of help to get rid of this real estate crisis are required to get hold of their banker and should be willing to go for a re-payment plan.

It has been declared by Crist that nearly $541 million will be used by the Department of Community Affairs soon to help mortgage affected people and for financial assistance to local governments. Apart from that $91 million will be used for direct housing assistance. ACORN, which happens to be the housing-and-wage advocacy group, asked for further action from Crist and the banks. Paul Griffin, ACORN organizer, said, "While we eagerly await more details, recent history has shown that voluntary measures have fallen fall short of addressing the enormity of the foreclosure crisis Florida faces"

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