Bankers Praise Florida Governor’s Proposed Home Foreclosure Moratorium

December 5, 2008

Bankers in Lee County praised Governor Charlie Crist’s proposed moratorium on Florida foreclosures.

Bankers Elmer Tabor, Mark Morris and David Hall said that majority of home foreclosure proceedings do not forced families to leave their properties. Tabor added that majority of these properties are investments.

Hall, First Community Bank of Southwest Florida president, described Crist’s moratorium proposal as “a good idea”.

Morris, chief executive officer of Commerce Bank of Southwest Florida, pointed out that bankers have compassion for homeowners who are in danger of losing their homes.

Meanwhile, Tabor believed that Crist’s idea will not affect homeowners with loans originated from Riverside Bank. He adds that his bank has not scheduled foreclosures on owner-occupied homes for the months of November and December.

To justify his proposal, Crist cited government-sponsored enterprises Federal Home Loan Mortgage Corp. or Freddie Mac and Federal National Mortgage Association or Fannie Mae’s plan for a temporary prohibition on evictions and foreclosures during this coming holidays.

Crist’s plan covers mortgage lenders who promised to work with borrowers. The governor and the Florida Bankers Association are expected to announce a plan to come up with repayment options for homeowners who have mortgage arrears

The governor indicated that he wants to coordinate with bankers to ensure that they are not harmed by the moratorium on Florida foreclosures.

Last month, Florida’s foreclosure rating was the third highest in the United States, with an estimated 30,190 filings. Filings in October in Cape Coral-Fort Myers region was the first highest in Florida and the second in the country.

According to ForeclosureConnections.com, a company that monitors the housing market, about 2,352 foreclosures were filed in areas covered by Cape Coral and Fort Myers in October.

Meanwhile, Lee County Circuit Judge John Carlin plans to expedite foreclosure processing by scheduling nearly 6,000 proceedings in December. The average number of cases per month was 2,000.

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