Holiday Time-out for Florida Foreclosures

With foreclosures on the rise, it seems like a lot of homeowners will be facing a bleak holiday season this year. However, Gov. Charlie Crist is considering to give a Christmas gift for his constituents and put a holiday moratorium, albeit temporarily, to Florida foreclosures.

Last week, a disheartening report showed that Florida’s budget shortfall was at $2.1 this year. The national housing market crisis has also not fared better and has affected whole neighborhoods.

Crist informed reports that he wanted to cooperate with the banking sector to make sure that the move would not be disadvantageous for them. He says that he wants banks to continue loaning money, and at the same time, he wants to put a stop to foreclosures. Crist is also open to a special session on Florida’s finances.

The plan is actually similar to California Gov. Arnold Schwarzennegger’s request for Congress to approve a 90-day ban on home foreclosures, a proposal which originally came from President-elect Barrack Obama. A special session for Schwarzennegger’s proposal has been set on November 30.

The government-controlled mortgage giants, Fannie Mae and Freddie Mac have also put a temporarily halt on foreclosure proceedings on mortgages that they own. The moratorium will last from November 26 to January 9.s

It is still unclear though if Crist would have to prevent Florida foreclosures via legislative approval or by executive order. But Crist remains positive that the state can learn from the ideas of Freddie Mac and Fannie Mae. He says that he is still testing the waters to find out if the House and Senate share his ideas. Since $40,000 a day is needed to be in a special session, and then it is essential that the House and the Senate would be able to come up with an agreement regarding the matter.

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