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Foreclosure Freeze Is Voluntary

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By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: December 2, 2008

TALLAHASSEE - Gov. Charlie Crist announced Monday that Florida banks and mortgage lenders have agreed to delay certain foreclosure proceedings, an agreement that industry leaders described as a "reaffirmation" of what they are already doing.

The announcement fell short of expectations built up around Crist's initial comments last month about declaring a holiday moratorium on foreclosures, possibly by executive order. Monday, Crist made clear that the 45-day foreclosure freeze would be voluntary on the part of banks 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.

Standing beside him was Alex Sanchez, president of the Florida Bankers Association, who said that Florida's bankers are already negotiating with residents who are truly in need to help them stay in their homes.

"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.

The state Democratic Party was quick to leap on the limited impact of Crist's announcement.

"Once again, Crist does nothing and takes credit for it," Eric Jotkoff, spokesman for the state Democratic Party, said via e-mail.

Banks and lenders that agree to comply with the 45-day delay will wait that long before filing new foreclosure petitions and scheduling foreclosure sales of primary homes. It remained unclear whether residents who have recently entered foreclosure proceedings would see any benefit. Likewise, it was unclear whether the foreclosure delay could impact homeowners whose mortgages are held by banking institutions outside Florida.

Crist's announcement is not related to the recent decision by lenders Fannie Mae and Freddie Mac to postpone foreclosures until early January.

Foreclosure affected 166,600 Florida households in October, according to the governor's office. Crist had no estimate for the number that might benefit from the delay.

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