February's Latest News

Real-estate bust brings foreclosure boom

Gov. Crist is making good on his campaign promises to save the Florida homeowner. The Legislature passed groundbreaking legislation to stop the crazy increases in homeowners' insurance. Gov. Crist has followed up with mandates freezing insurance rates, barring the cancellation of existing policies and calling another special session to address property-tax relief.

Yet, one critical ingredient of a comprehensive plan to save the state's real-estate industry still is missing and not being discussed. Foreclosures in Florida are at their highest rates in years. Many homeowners and investors are victims of "exotic" mortgages, which allowed them to purchase properties with little money down and with what seemed like small, manageable payments.

Spoiled by historically low interest rates, many of us entered into adjustable-rate mortgages several years ago that are now "adjusting" into extremely high payments. If homeowners and investors can't pay their mortgages, it does not matter if they can pay their insurance or taxes.