The Florida Senate

424.18  Foreclosure actions; judicial sales.--

(1)  In any foreclosure action, the Department of Community Affairs shall be made a party defendant; and such department shall take all steps in such action necessary to protect the interest of the public therein, and no costs shall be awarded against the department. Foreclosure shall not be decreed unless the court to which application therefor is made is satisfied that the interests of the lienholder or holders cannot be adequately secured or safeguarded except by the sale of the property. In any such proceeding, the court may make an order increasing the rental to be charged for the housing accommodations in the project involved in such foreclosure or appoint a receiver of the property or grant such other and further relief as may be reasonable and proper. In the event of a foreclosure sale or other judicial sale, the property shall, except as provided in subsection (2), be sold to a limited dividend housing corporation organized under this chapter, provided such corporation bids and pays a price for the property sufficient to pay court costs and all liens on the property with interest. Otherwise, the property shall be sold free of all restrictions imposed by this chapter.

(2)  Notwithstanding the foregoing provision of this section, whenever it appears that a corporation which is subject to the supervision either of the Department of Insurance or the Department of Banking and Finance or the Federal Government or any agency or department of the Federal Government has loaned on a mortgage which is a lien upon any such property, such corporation shall have all the remedies available to a mortgagee under the laws of the state, free from any restrictions contained in this section, except that the Department of Community Affairs shall be made a party defendant and that such department shall take all steps necessary to protect the interest of the public and no costs shall be awarded against it.

History.--s. 17, ch. 16028, 1933; CGL 1936 Supp. 4151(149); ss. 12, 13, 18, 35, ch. 69-106; s. 68, ch. 81-167; s. 71, ch. 83-55.