Crist urges 45-day freeze on foreclosures
South Florida Business Journal - by Susan R. Miller
Leaders from the Florida Bankers Association and Florida Credit Union League joined Gov. Charlie Crist on Monday in asking their members to provide temporary relief from foreclosure to Floridians who face the prospect of losing their homes.
During a press conference, Crist urged lenders to negotiate with struggling homeowners, at least through the holidays.
“Struggling families and homeowners should rest easier during this holiday season, knowing that these lenders have heard the pleas of homeowners,” he said.
Alex Sanchez, president and CEO of the Florida Bankers Association, and Aletta Shutes, executive vice president of the Florida Credit Union League, said their organizations have appealed to member institutions to voluntarily put a freeze on new foreclosure petitions and scheduling foreclosure sales for during the next 45 days.
Florida has the nation’s third-highest state foreclosure rate, with 166,600 homes statewide being impacted by foreclosures in October, according to RealtyTrac.
At the Consumer Credit Counseling Service of Palm Beach County/Treasure Coast, the number of people coming in for assistance has skyrocketed. Last month, 1,487 homeowners facing foreclosure came in, up from 377 in 2007 and 58 in 2006.
President Jessica Cecere said those facing foreclosure should use the 45-day reprieve to focus on the future and find ways to either work with lenders to save their homes or look for alternatives.
“The point is so that no one gets put out of their home during the holiday,” she said. “It offers them the opportunity to seek the help they need or to work with a company to get a plan in place.”
Earlier today, the Florida Department of Community Affairs submitted to the U.S. Department of Housing and Urban Development (HUD) a 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 money will go to local governments to purchase foreclosed homes at a discount and rehabilitate or redevelop them.
In September, HUD announced that targeted Florida cities and counties would receive a total of $541 million in federal Community Development Block Grant funds for this purpose. That’s more than any other state in the nation.
Miami-Dade County received the largest chunk of the state's allocation – not only in Florida, but also in the nation – with $62.2 million. Palm Beach County received $27.7 million and Broward got $17.7 million.
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