The local governments are concerned about steps being taken by a bankers group in Florida in trying to avoid the responsibility of maintaining foreclosed units. This will mean passing on the buck to the taxpayers while at the same time these derelict houses will continue to pull down property values of the localities.

Thousands and thousands of residential houses across Florida have been left deserted with boarded windows, stagnant pools and overgrown gardens. With the worsening of the foreclosure crisis the situation is deteriorating.

The local administration from Miami to Winter Garden have started sending teams to trim the lawns, clear the pools and see to other basic chores. The liens are being transferred to the lenders – mainly the banks.

The banking industry wants to stop this. They have acted with stealth and drafted a step in the Florida Legislature that would stop the cities as well as the counties from compelling the banks holding the mortgages on the estates to look after the units until they actually come to possess the title deed. The process is time consuming and can take up to six months or more. The language of the bill would also prevent the municipalities from setting up registries to track all the foreclosed houses in the locality.

The bankers want to tack on this language to another law during the last days of the current session of the legislature. This way focus will be avoided and it will get the go ahead signal without fuss. Anothy DiMarco representing the bankers said that the issue was a big one.

Local ordinances are being passed to enforce banks to maintain the units while in foreclosure. It will allow cities to impose liens and other penalties on the land. DiMarco said it was great but until they formally took over the property it was not their duty to see to the house because till then the property was not theirs.

However the move by the banks has not gone unnoticed and it has raised a hue and cry among the cities as well as the counties. It is they who are the direct sufferers of this housing crisis.

Gary Bruhn the mayor of Windermere said, “We’ve got a lot of people thanking us for going in and cleaning up the lots, cleaning up the pools, getting the house halfway decent so you don’t live next to a health hazard.” In Windermere a law has been passed to tag on the maintenance charges to the future tax bills.”

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Lenders Are Trying to Avoid the Responsibility of Maintaining Foreclosed Units

Not all regions are equally benefiting from foreclosure rescue measures. So far only two families have got help from a programme in Plantation. Initially it promised help to those borrowers who were failing in their mortgage payments or if funds were required to make security deposits for rentals. The plan had started in August 2008.

According to city officials the conditions of the programme have been so stringent that only two families have been able to get help.

The plan offers assistance up to $10,000 to anyone defaulting. Anyone who has already lost a house to foreclosure could get $3,000 as funds towards paying for rental security and advance. But it is not easy to qualify for the help funds. It requires applicant to prove that they will be able to continue with mortgage payments after receiving help.

Councilwoman Diane Veltri Bendekovic said, “If my understanding of the guidelines is correct, how does an unemployed applicant have the resources to make payments on their home?” The assistant mayor of Plantation Daniel Keefe echoes the same sentiments. He said, “The program is not very effective due to the stringent qualification criteria.”

A private company named Community Redevelopment Associates of Florida was appointed to manage and distribute the fund of $762,840 as grant from State Housing Initiatives Partnership. CRAF has to strictly following guidelines laid down by the state and the feds to see proper usage of the money. Keefe added, “While it may seem heartless that we can’t assist a family behind on mortgage payments because of a lost job, if they can’t continue to make mortgage payments in the future because of that job loss, we’ve only put off the inevitable by assisting them”.

Shekeria Brown of CRAF argued that the low response was due to the grim economic situation. She said, “When we started the program, there were many cases of mortgage adjustments, but now, fast-forward a year, we’re seeing a lot of people calling us after losing their job. Last year it was more about [adjustable-rate mortgage] adjusting; now there’s a lot of people who lost their jobs and lost their income for a few months.”

Those applying would have to prove that they failed to meet the previous due payments because of loss of income, divorce, death, unexpected illness or sudden essential repairs to the house. Those applying for funds for rental purposes have to prove that they have recently been foreclosed upon and need shelter.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Not All Regions Are Benefiting from Foreclosure Rescue Measures