Florida homeowners falling behind on their mortgage payments in a downward spiraling economy may get a reprieve from the governor – at least for the short term.
Florida Gov. Charlie Crist is contemplating an executive order that would impose a temporary moratorium on all foreclosures in the state with the second highest number of mortgage defaults in the nation, according to the Miami Herald.
In the first nine months of 2008 ending Sept. 30, lenders filed 56,000 foreclosure actions against borrowers in South Florida and repossessed an additional 19,000 properties, according to Condo Vultures® LLC, a Bal Harbour, Fla.-based real estate consultancy.
Following the similar actions of mortgage giants Fannie Mae and Freddie Mac, Crist is considering the dramatic move for the holiday season, which begins on Thursday with Thanksgiving and ends Jan. 1 with New Years Day, if not longer.
Crist did not elaborate on the length of time any potential foreclosure moratorium would extend in Florida, according to the Miami Herald.
Crist’s idea is not a new one. California, which also has one of the highest mortgage default ratios in the country, recently imposed a 90-day moratorium on foreclosures, giving borrowers an additional quarter to try to resolve their situations.
Before making a final decision, Crist is likely to speak with Florida’s powerful banking industry, which would be adversely affected by a foreclosure moratorium.
``I want to try to work with the banking industry and do it in a way that is not harmful to them because we want them . . . to continue to loan money, but we want to stop the foreclosures, especially during the holidays,'' Crist told the Miami Herald.
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .
Copyright © 2008, Condo Vultures® LLC
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