Last week I made it clear that Floridians better understand that if they cannot afford the mandatory wave of special assessments that are coming for inspections, repairs and reserves they better put their condo up for sale, and fast,  before a foreclosure is ultimately filed against them for failing to pay the association.  It doesn’t take a fortune teller to know what’s coming to our state, foreclosures and potentially tens of thousands of them.

Here’s the shame of it all.  To a large extent, it is absolutely avoidable.

Suppose I asked you to make an investment that guarantees you a return rate of 8 percent interest.  It is secured by a first mortgage on real estate and you simply cannot lose.  Would you make that investment?  I think all of us would.  Well, that is the opportunity that the banks in Florida and that our state itself currently finds itself in but so far, won’t make the deal.  Let me explain.

Because the real estate market has exploded over the last decade or so, those very same people who are facing having to sell their homes because of the special assessments they will be facing are also sitting on boatloads of equity in those very same homes.  In fact, almost all senior citizens don’t even have a mortgage on their condominiums and own them outright.

I don’t know why Florida banking institutions cannot come out with a very simple loan that verifies through an appraisal that the owner has at least 50% equity in their home.  Upon verification, the owner would be able to borrow a sum of money, secured by a mortgage on the condominium unit, that accrues interest every year and that is simply due upon sale of the condominium or the death of the owner.  The owner would not have to make any payments to the bank during their lifetime or ownership of the property.  The interest continues to accrue.  How can the banks lose?

The banks have been bailed out time and again.  Now, they have the opportunity to bail out the great citizens of this state by granting virtually risk-free loans that accrue interest and that are secured by a first mortgage on a condominium property.  They can, should and must do this for all condominium owners, especially our elderly population.  If they won’t do it then The Legislature should revoke their charter to do business in the state at all.  Tough times call for tough measures.

Which brings us to our own state.  Florida has tens of billions of dollars set aside in hurricane catastrophe funds that need to be tapped into right now to provide our citizens with these same type of loans.  Nobody is asking for anything interest-free.  How about after verification of the equity in the home, a low-interest mortgage also due upon sale of the condo or death of the owner?  The interest continues to accrue during the life of the loan.  How can the state lose?  Not only can’t the state lose —- but wow what a winner it would look like —- averting a potential nightmare for the citizens that have moved here, spent their money here, paid taxes here, established a life here, raised children here, bought homes here and hoped to retire and even die here..  Our state owes them nothing less.

All Florida banking institutions, Governor DeSantis and The Florida Legislature, let’s help those who want to stay in their homes as long as they’re willing to foot the bill.