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Cristís 45-Day Moratorium May be Late for Some Florida Foreclosures

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By : Leticia Carvalho    99 or more times read
Florida is the third state in the U.S. with the highest rate of foreclosure. To help homeowners in the state who are facing the threat of foreclosure, mortgage lenders and Governor Charlie Crist have agreed to impose a 45-day moratorium on foreclosures during holidays.

Sheriff Randy Ganter of Pasco has to serve the writ of possession which means that a family whose property was repossessed by a bank is forced to vacate the house.

Most of these distressed homeowners have used their home equities during the economic peak and lost nearly all their assets when the economy plummeted.

Edward Kessler who works as a carpenter purchased his house in 1992 for $38,250. He and his second wife have four children. When his house needed a major remodeling, he turned to refinancing through subprime lending to fund the project.

The subprime lender allowed Kessler to borrow $89,250 at the interest rate of 8.55 percent. His monthly mortgage for his house increased to $850 from $460.

Then a series of bad things happened to Kessler, among them the break-up of his marriage and the injury on his two fingers which forced him to stop working for weeks. The slow down in the construction industry brought about by the economic crisis means that there was reduced demand for carpenters.

By September 2007, Kessler was already behind in his monthly mortgage payment which increased to $1,100. Foreclosure proceedings started and in October 2008, the lender foreclosed on the distressed property.

In some foreclosures, lenders pay homeowners to leave their houses voluntarily. The homeowner is then instructed to turn over his house keys to the lender.

However, when the foreclosure proceeding has reached the eviction stage, law enforcement officers are required to serve the writ of possession. They should make sure that no member of the family, firearm and other dangerous things are left behind.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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