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Florida Lenders Agree To Voluntary 45-Day Foreclosure Delay

Hernando Today file photo by DAVE CASEY

Trash lies uncollected at this foreclosed home in Spring Hill in July.

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By CATHERINE DOLINSKI | The Tampa Tribune

Published: December 1, 2008

TALLAHASSEE - Gov. Charlie Crist announced today that Florida banks and mortgage lenders have agreed to delay certain foreclosure proceedings – an agreement industry leaders described as a "reaffirmation" of their practices rather than a major change.

The announcement fell short of expectations that built up around Crist's initial comments last week about declaring a moratorium on foreclosures, possibly by executive order. Today, Crist made clear that the 45-day foreclosure freeze would be voluntary on the part of bankers and other participating lenders, giving homesteaded property owners the opportunity to renegotiate their payment plans.

"Our goal here is to offer hope to families at this time," Crist said. "They need it, and they deserve it."

Standing beside him was Alex Sanchez, president of the Florida Bankers Association, who applauded Crist's "compassionate leadership." But he also said Florida's bankers are already working with residents to keep them in their homes in cases where there is legitimate need and no evidence of fraud.

"I think what he is saying this morning is a reaffirmation of what our practice is in the banking industry in the state of Florida," Sanchez said. "I would urge all Floridians, if you're having any problems meeting those mortgage payments, please contact your banker right away. … We want you to stay in your home."

Banks and lenders that agree to the 45-day delay will wait that long before filing new foreclosure petitions and scheduling foreclosure sales of primary homes. It remained unclear, however, whether residents in the middle of foreclosure proceedings would see any benefit.

It was also unclear whether the announced foreclosure delay would impact homeowners whose mortgages are held by financial institutions outside of Florida.

Crist downplayed the limits of his announcement on homeowners, depending on their circumstances.

"Even if it's only one person, it matters," he said.

Reporter Catherine Dolinski can be reached at (850) 222-8382.

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