Troubled homeowners in Florida who are having problems with their mortgages received an early holiday present in the form of a 45-day moratorium on foreclosures for the length of the holiday season. Florida Governor Charlie Crist announced the news after banks and credit unions gave their support for the moratorium.
This could provide much needed relief for these homeowners struggling to make ends meet in order to pay for their monthly amortizations. The 45-day ceasefire could also give them ample time to discuss a repayment or restructuring plan with their banks and lenders to avoid possible foreclosures.
Governor Crist also announced that a $541 million federal mortgage assistance fund would be given to local governments with programs and plans on how to deal with foreclosures and help beleaguered homeowners. This federal relief fund could give some assistance to troubled residents but it could only be able to help a limited number of homeowners avoid foreclosures.
What the people of Florida are clamoring for right now is a comprehensive plan to deal with foreclosures even beyond the holidays and finally put it to bed. With the state having the third highest foreclosure rate in the country at present, aggravated by steady rise in unemployment cases, the permanent solution to the problem is much needed and should be available to residents at the soonest possible time – before it is too late.
Various sectors are still clamoring for a longer moratorium period and are urging the legislative body to check the feasibility of a 90-day moratorium on foreclosures. During this lull, a state or an independent mediator should oversee and work with the lender and the homeowner to discuss possibilities for the modification of the loan.
Successful renegotiations could help save thousands of families and keep them in their homes. With mortgages current, it would mean a favorable movement of money for the banks, which could keep them stable and revive the financial market once more.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.