Senate Bill 2594

    Florida Senate - 2000                                  SB 2594

    By Senator Campbell





    33-1361-00

  1                      A bill to be entitled

  2         An act relating to mortgage-foreclosure

  3         proceedings; providing for expedited procedure

  4         under certain conditions; providing that a

  5         hearing and an adjudication that requested

  6         attorney's fees are reasonable are not

  7         necessary under certain conditions; providing

  8         that attorney's fees when provided in a note or

  9         mortgage constitute liquidated damages;

10         providing an effective date.

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12  Be It Enacted by the Legislature of the State of Florida:

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14         Section 1.  (1)  In uncontested mortgage-foreclosure

15  proceedings in which the mortgagee waives the right to recoup

16  any deficiency judgment, the court shall enter final judgment

17  within 90 days from the date of the close of pleadings. For

18  the purposes of this subsection a mortgage-foreclosure

19  proceeding is uncontested if an answer not contesting the

20  foreclosure has been filed or a default judgment has been

21  entered by the court.

22         (2)  In a mortgage foreclosure proceeding, when a

23  default judgment has been entered against the mortgagor and

24  the note or mortgage provides for the award of reasonable

25  attorney's fees, it is not necessary for the court to hold a

26  hearing or adjudge the requested attorney's fees to be

27  reasonable if the fees do not exceed 3 percent of the original

28  principal amount stated in the note or mortgage, even if the

29  note or mortgage does not specify the percentage of the

30  original amount that would be paid as liquidated damages. Such

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                                  SB 2594
    33-1361-00




  1  fees constitute liquidated damages in any proceeding to

  2  enforce the note or mortgage.

  3         Section 2.  This act shall take effect upon becoming a

  4  law.

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  7                          SENATE SUMMARY

  8    Provides that in certain uncontested mortgage-foreclosure
      proceedings the court must enter final judgment within 90
  9    days from the date of the close of pleadings. Provides
      that when a default judgment has been entered against a
10    mortgagor and the note or mortgage provides for the award
      of reasonable attorney's fees, the court need not hold a
11    hearing or adjudge the requested fees to be reasonable if
      the fees do not exceed 3 percent of the original
12    principal amount. Such attorney's fees constitute
      liquidated damages in any proceeding to enforce the note
13    or mortgage.

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