FLORIDA RECEIVES $1.3 MILLION TO SUPPORT FORECLOSURE PREVENTION COUNSELING
March 6, 2008
Contact:
GOVERNOR'S PRESS OFFICE
(850) 488-5394
TALLAHASSEE – Governor Charlie Crist today announced that Florida has received nearly $1.3 million to support statewide foreclosure prevention counseling efforts. The much-needed boost will enable approximately 50 counseling agencies/organizations to provide more foreclosure counseling than ever before to area homeowners in danger of foreclosure.
“We know that most homeowners never talk to their mortgage lender, even as they are facing foreclosure,” said Governor Crist. “By making more counseling and education about foreclosure alternatives available to homeowners, it is our hope that more homeowners will be able to avoid the financial devastation of foreclosure.”
The grant to support Florida’s foreclosure counseling intervention efforts was provided by funds from the National Foreclosure Mitigation Counseling Program. Approved by Congress in the Fiscal Year 2008 Consolidated Appropriations Bill, the National Foreclosure Mitigation Counseling Program is administered through a competitive application process by NeighborWorks® America, within guidelines defined by federal legislation. NeighborWorks America is an independent, congressionally-chartered, non-profit organization based in Washington, D.C., with a mission to provide access to sustainable homeownership and safe, affordable rental housing.
On February 20, 2008, Governor Crist appointed experts in the mortgage and banking industries, as well as consumer advocates and policy experts, to the Florida HOPE Task Force. By April 18, 2008, the task force will present recommendations to the Governor, Speaker of the House and President of the Senate for a state action plan to address Florida’s foreclosure rate.
Chaired by Lt. Governor Jeff Kottkamp, the task force will examine Florida’s banking and mortgage industries, including the subprime market and subprime borrowers, as well as the current laws and regulations related to the foreclosure process. They will also identify and assess public and private financial resources and educational opportunities available to assist Florida homeowners.
“During the next few weeks, the Florida HOPE Task Force will consider information from experts and accept public comment from interested individuals,” said Lt. Governor Kottkamp. “I encourage Floridians to visit our Web site to learn more about how they can provide information to the task force.”
A total of 279,325 foreclosure filings – many of which were sub-prime loans – were reported in Florida during 2007, which is more than twice the number of filings reported in 2006. In December 2007, Florida had $78.7 billion in sub-prime loans; more than 20 percent of these loans were seriously delinquent, ranking Florida seventh in the nation for foreclosures and third in seriously delinquent mortgages, which are delinquent 90 days or more, in the foreclosure process or foreclosed and now owned by the bank. This grant will assist approximately 25,000 borrowers facing foreclosure.
The next Florida HOPE Task Force meeting is scheduled for March 19 in Tallahassee, where the task force will be accepting public comment. The group’s third meeting is planned for April 2, also in Tallahassee, with a fourth meeting held via conference call on April 9. For meeting agendas, a complete list of the task force members and additional information on the Florida HOPE Task Force, please visit http://www.flgov.com/hope_task_force.
- # #