Foreclosures in Florida to Be Suspended Over the Holidays
Borrowers in Florida possibly will experience a moratorium on their mortgaged properties. After a meeting with a high-ranking bank officer last Tuesday, Gov. Charlie Crist, governor of Florida, announced that he is negotiating an agreement with lending companies for a suspension on mortgaged foreclosure homes. This is to give way to the holiday season.
Crist later on met with Florida Bankers Association president Alex Sanchez and after the meeting, he is hopeful to get favorable results by next week. The bank is one of the largest and most powerful in Florida.
Borrowers are advised to get in touch with their banks as soon as possible. They could be of great help to borrowers who are lagging in payments.
Next to Nevada and Arizona, Florida ranks third in foreclosures. One in every 157 homes in the state is confiscated by creditors.
The moratorium, of course, is not without deadline. The least that the state can do is push for the suspension of foreclosures during the holiday season. After expiration, the rest is upon the discretion of lending companies.
Fannie Mae and Freddie Mac have already been applying the moratorium for a week now. A number of Florida homeowners have already benefited from the deferment on foreclosures, and more residents will be enjoying the moratorium until January 9.
Uncertainty rests, however, on whether the moratorium on foreclosures would be adopted by lenders voluntarily or legislation would still be needed for their compliance. Nevertheless, Crist is exerting all efforts to help Florida homeowners keep their properties in the meantime.
Unfortunately for speculators, they are not covered by the moratorium as they have not been of much help to the housing situation in Florida. Only homesteads (or owners of primary homes) can rest assured that they are spared from foreclosures over the holiday season.
