Gunster – Banking Advisory, December 2008
Following the request of Florida Governor Charlie Crist, on December 1, 2008, representatives of the banking and mortgage lending industry announced they would urge financial institutions to voluntarily cease filing new foreclosure petitions and scheduling foreclosure sales on homestead properties for the next forty-five (45) days (“Announcement”). The Florida Bankers Association, Florida Credit Union League andfinancial institutions participated in the Announcement.
According to the Announcement, Florida has the thirdhighest rate of foreclosure sales in the nation, with166,600 households in the State being impacted byforeclosure activities in October 2008.
The Governor is encouraging lenders to continue their efforts to actively negotiate with struggling homeowners during the coming months to help people stay in their homes. Contrary to earlier press reports,the Governor is not planning on issuing an executive order to require a foreclosure moratorium, but rather isrequesting a voluntary suspension of foreclosure process in certain limited circumstances (i.e., owneroccupiedhomes where there is no fraud or theborrower is cooperating in good faith).
The Announcement is one of several initiatives by the State of Florida in response to rising foreclosures and falling home values.
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Should you wish to receive further information concerning matters discussed in this Banking Advisory,please contact Clemente Vazquez-Bello, Esq. at (305)376-6082, Andres A. Fernandez, Esq. at (305) 376-6097 or Marina Olman, Esq. at (305) 376-6069 or [email protected],[email protected] or [email protected].
