Florida Republicans: Legislation shielding banks from costs of maintaining foreclosed homes

[seafan]

The gang-rape by the Republican legislature and the Florida Bankers Association continues.

We The People certainly did not write these failed loans; we didn't earn commissions from these transactions; we did not earn interest from mortgage payments. Why should taxpayers bear the cost of upkeep on abandoned, foreclosed homes???




Bill would shield banks from cost of maintaining homes in foreclosure

By Jennifer Gollan
South Florida Sun-Sentinel

April 27, 2009

.....

Across the state, local governments are grappling with a flood of such distressed properties. While many in Broward County Click here for restaurant inspection reports bill banks for tidying neglected properties, a few cities such as Coconut Creek and Lighthouse Point absorb some costs. Lauderdale-by-the-Sea has persuaded lenders to maintain about a dozen homes.

But their options could be limited if an initiative being pushed by the Florida Bankers Association is passed by the Legislature. It would bar governments from requiring banks to maintain properties in foreclosure until the bank has acquired the title to the land, a process that can take six months or more. It also would prevent cities from tracking such homes.

Local municipal officials say the measure would burden responsible homeowners with more taxes. They fret that legions of properties will fall into decline, dragging down property values.

"This legislation is shifting the bill to the public to take care of this problem," said Gus Zambrano, Miramar's economic development and revitalization director. "It is very surprising that the banking industry is looking for additional support from taxpayers, given all the bailouts and the fact that they are now reporting profits."

Anthony DiMarco, the head lobbyist for the Florida Bankers Association, countered that local governments should bear the responsibility.

.....

Homeowners associations also hope to quash the proposal.

Gary Poliakoff, a director of the Community Association Leadership Lobby representing almost 4,500 homeowner associations in Florida, has urged members to write their legislators. It behooves banks to maintain properties to sustain their value, which helps them maximize the return on their investment, he said.

"Banks created the problem in the first instance by relaxing lending requirements and placing individuals who are not creditworthy in communities," Poliakoff said. "Banks don't want to pay their share of maintenance fees, which are going largely to maintain the collateral that secured their loans, until they find buyers for defaulted properties."

While Tim Geithner skips merrily on.

[predfan]

1. Socialize the costs, privatize the profits.

[Fumesucker]

2. This..

[lib2DaBone]

3. Florida Legislature wants to raise Hurricane insurance.....

.. and just last week our State CONgress was busy passing a law that will raise Hurricane insurance 20%.

The reason given was that they want to make it attractive for State Farm to return to Florida. WTF?

Our tax dollars at work.. it's never about improving anything for the residents... its always about making a quick buck for the Jeb Bush-big developers or pushing through cheap/fast off shore drilling for the oil companies.

[marketcrazy1]

4. banks would not have a problem

IF THEIR "PROFITS" WERE REAL!!!!!!!!!!!!