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Highlands Today

Crist Hopes To Get Foreclosure Moratorium

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By MARC VALERO

Highlands Today

Published: November 27, 2008

SEBRING - As some head home for the holidays, families facing a financial crisis and foreclosure are hoping they will have a home - their home - for the holiday season.

A proposal from Gov. Charlie Crist would be a welcome holiday gift, albeit temporary, for these families.

Crist said that he likes the idea of a moratorium on home foreclosures in Florida.

The governor noted mortgage finance giants Fannie Mae and Freddie Mac last week announced a temporary halt to foreclosures and evictions during the holiday season.

Crist said he's unsure whether he can order a moratorium or would need legislation but that he'd prefer, instead, to reach an agreement with bankers. He wants a voluntary agreement with lenders to halt Florida foreclosures at least through the holidays.

After meeting Tuesday with the president of the Florida Bankers Association, Crist said he hoped to announce something next week.

Linda Harrell of ERA Advantage Realty in Sebring said a foreclosure moratorium is an excellent idea.

"There are so many people hurting here right now and they need to have some sort of break," she said. "That Crist is willing to do that is awesome."

Harrell spoke to a homeowner Tuesday who is considering a short sale on his home, where the bank agrees to accept less than what is owed on the house.

With the moratorium out there it seems like it is giving them some hope that maybe they can stay in their house, Harrell said.

"I've done quite a few short sales and putting a moratorium on foreclosures is a whole lot better idea than them actually having to move out of their homes." she added.

Alex Sanchez, president of the Florida Bankers Association, said bankers are willing to restructure loans for homeowners having difficulty making payments. Speculators, though, need not apply, he said.

But, Randall Holcomb, economics professor at Florida State University, cautioned that, if the state prevents foreclosure on mortgages in default, lenders may be less inclined to lend in the future. "We have to think about both the present and the future."

With a sharp increase in foreclosures in Highlands County, the proposed moratorium would affect a significant number of families.

"We are getting tons of them in," said Clerk of Courts Bob Germaine. Last week he saw two stacks of files coming in that were about four-feet high.

Highlands County foreclosures are up 43 percent in November 2008 compared to a year ago. This month there have been 87 foreclosures filed with the clerk of courts compared to 61 in November 2007.

Florida's foreclosure rate ranked third nationally in October with 30,190 filings.

Barbra Jackson of Keller Williams Realty, Sebring, said a moratorium would allow people to stay in their homes longer.

But, with a tough job market, a person won't be able to keep their home unless they have a job or can get a job and show an income that will pay for that house.

So a moratorium may not do any good except to temporarily keep people from absolutely giving up, she said.

"Certainly it has affected our business because the foreclosures have loaded the market with homes by banks that compete with anything we've got on the market," she said.

The AP and Tampa Tribune contributed to this story

Marc Valero can be reached at 386-5826 or mvalero@highlandstoday.com

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