Florida lenders agree to no foreclosures for 45 days

Florida lenders agree to no foreclosures for 45 days

TALLAHASSEE, Fla./December 2, 2008 – Governor Charlie Crist has announced  that two groups of Florida lenders have voluntarily agreed not to file new foreclosure petitions on primary homes for the next 45 days.The Florida Bankers Association and the Florida Credit Union League made the announcement Monday in a press conference with Governor Crist. They also volunteered not to schedule foreclosure sales during that period.

Monday's announcement fell short of expectations that built up around Crist's initial comments last week about declaring a moratorium on foreclosures, possibly by executive order. Today, Crist made clear that the 45-day foreclosure freeze would be voluntary on the part of bankers and other participating lenders, giving homesteaded property owners the opportunity to renegotiate their payment plans.

Florida has the country's third highest foreclosure rate, and the grace period is a recognition of tough economic times. It doesn't affect foreclosure proceedings that have already begun and doesn't apply to businesses or second homes.