Florida's Crist Planning a Foreclosure Moratorium During Holidays

A holiday moratorium on Florida foreclosures is being considered by Governor Charlie Crist. This plan is similar to California Governor Arnold Schwarzenegger’s 90-day ban on foreclosure.

During his announcement of his plan for a holiday moratorium on foreclosure, Crist also expressed his interest to coordinate with the financial sector to ensure that bankers will not be harmed in any way by the moratorium.

He wants the banking industry to continue to prosper and to provide loans to people. However, he added that he also want to put a break on foreclosures, particularly during the holiday season.

Crist also noted that government-sponsored enterprises, Federal Home Loan Mortgage Corp. or Freddie Mac and Federal National Mortgage Association or Fannie Mae have called for a temporary ban on evictions and foreclosures during the holiday season.

Crist and the Florida Bankers Association are expected to announce a plan to formulate repayment options for homeowners who are facing the threat of losing their homes.

Florida’s foreclosure rate was the third highest in the country in the October ranking, with 30,190 filings. In terms of percent of foreclosures, the Cape Coral-Fort Myers area was ranked first in Florida and second in the country, with one filing for every 75 households.

Last October, 2,352 filings were made in the Cape Coral-Fort Myers area.

Crist has not made it clear whether he would impose the temporary ban on foreclosures in the state by seeking a legislative approval or through an executive order. His plan, and that of California Governor Schwarzenegger, is similar to President-elect Barack Obama’s proposal at the national level.

Meanwhile, Crist said that he is open for a special session to discuss the state’s finances. Florida had incurred a $2.1 billion budget shortfall for the current fiscal year. He wants to be careful and sensible with the state’s finances in light with the foreclosure crisis in Florida.