New Task Force in Florida to Take On Foreclosures

February 22nd, 2008 | Tags: Foreclosures

Governor Charlie Crist has initiated a task force to grapple with the rising foreclosure numbers in Florida. The group known as the Florida Home Ownership Promotes the Economy comprises of representatives from the lenders, consumer lawyers and experts in the line. The members are scheduled to analyze the foreclosure picture in the state and its impact on society and the economy. Having done so they will jump into action to solve the problem and find out ways to make life better for the residents of Florida. Florida ranked second in the Foreclosure race across the country. The numbers were double that of the previous year. One out of every 95 houses were in some stage of foreclosure showing a jump of 275% from 2006. The figures were released by the Chief Financial Officer of Florida, Alex Sink. Lt. Governor Jeff Kottkamp and Sink are both members of the task force together with Senators Bill Posey (R-Rockledge),Tony Hill (D-Jacksonville) and others like Franklin Sands (D-Plantation) and Garrett Richter (R-Naples). There are a host of others – Alex Sanchez of Florida Bankers Association, Ritch Workman of Florida Association of Mortgage Brokers, Mike Fields of Bank of America Tallahassee, Thomas Kuntz of Sun Trust Bank, Florida, Nancy President from Florida Association of Realtors, Bill Newton from Florida Consumer Action Network and Steve Auger from Florida Housing Finance Corporation. The plan is to meet four times during spring this year on March 3rd and 19th, and April 2nd and 9th at Tallahassee so as to be able to place recommendations before 18th April to the Governor, Speaker of the House. and President of the Senate. Florida had seen during the past few years a phenomenal rise in real estate activity. It coincided with the aggressive peddling of sub-prime loans. At one point it seemed that anybody with a pulse could qualify for the loan. Prime loans were difficult to get as it required a certain income level and proof of that. The loan amount was in proportion to that. Also one had to have a good credit history. As such many could not avail of the loans and realize the great American dream of owning a house. The sub-prime ostensibly catered to this group to come up in society. But unfortunately the plan misfired. Speculators took advantage of easy money to invest leading to the rise as well as fall of the real estate rocket.