Florida Senate - 2014                                      SB 82
       
       
        
       By Senator Soto
       
       
       
       
       
       14-00027-14                                             201482__
    1                        A bill to be entitled                      
    2         An act relating to short sale debt relief; creating
    3         the “Short Sale Debt Relief Act”; defining terms;
    4         providing that a debtor does not owe a deficiency to a
    5         lienholder related to an eligible real property sold
    6         pursuant to a bona fide short sale if an offer is
    7         received by the debtor within a specified time period
    8         and under specified conditions; providing for the
    9         distribution of proceeds; requiring a lienholder to
   10         approve the short sale of property and execute any
   11         document necessary to close the sale within a
   12         specified time period if a debtor procures a buyer who
   13         makes an offer in writing equal to the fair market
   14         value of the eligible property; providing that a
   15         debtor has a claim against a lienholder for actual
   16         damages, costs, elimination of the lien, and attorney
   17         fees if the lienholder violates the act; providing an
   18         effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. (1) This act may be cited as the “Short Sale
   23  Debt Relief Act.”
   24         (2) As used in this act, the term:
   25         (a) “Bona fide short sale” means a sale of eligible real
   26  property which is the result of an arms-length transaction
   27  between two parties who are unrelated by family or contractual
   28  ties other than the short sale.
   29         (b) “Deficiency” means a debt owed related to a mortgage,
   30  note, or other lien on eligible real property which exceeds any
   31  money received by a lienholder pursuant to a bona fide short
   32  sale.
   33         (c) “Eligible real property” means any first home, second
   34  home, or single-family rental property located in this state
   35  which has total mortgage-related debt greater than 20 percent of
   36  the fair market value of the property as determined by a
   37  licensed appraiser.
   38         (d) “Proceeds” means an amount equal to the purchase price
   39  of a bona fide short sale less any applicable fees and taxes;
   40  however, new fees may not be created by a lienholder as a result
   41  of this act.
   42         (e) “Short sale” means the purchase and sale of real
   43  property in which all of the following apply:
   44         1.The grantor’s interest is encumbered by one or more
   45  mortgages securing indebtedness in an aggregate amount greater
   46  than the consideration paid or given by the grantee.
   47         2.A mortgagee releases the real property from its mortgage
   48  in exchange for a payment of less than the total of the
   49  outstanding mortgage indebtedness owed to the releasing
   50  mortgagee.
   51         3.The releasing mortgagee does not receive, directly or
   52  indirectly, any interest in the property transferred.
   53         4.The releasing mortgagee is not controlled by or related
   54  to the grantor or the grantee.
   55         (3) A debtor does not owe a deficiency to a lienholder
   56  related to eligible real property sold pursuant to a bona fide
   57  short sale if an offer is received by a debtor pursuant to
   58  subsection (5) within 3 years after July 1, 2014, and closing
   59  occurs within 60 days thereafter.
   60         (4)(a) A first lienholder is entitled to 90 percent of the
   61  proceeds of the short sale.
   62         (b) A second or subsequent lienholder is entitled to a
   63  combined total of 10 percent of the proceeds of the short sale,
   64  which must be distributed proportionally to the amount of debt
   65  held by the second or subsequent lienholder.
   66         (5) If a debtor procures a buyer who makes an offer in
   67  writing equal to the fair market value of the eligible property
   68  for a bona fide short sale, the lienholder shall approve the
   69  sale of the property and execute any document necessary to close
   70  the sale within 45 days after the sale.
   71         (6) A debtor may file a claim against a lienholder for
   72  actual damages, costs, elimination of the lien under equity, and
   73  attorney fees if the lienholder violates this act.
   74         Section 2. This act shall take effect July 1, 2014.