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A bill to be entitled

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An act relating to judicial sales procedure; providing a

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short title; amending s. 45.031, F.S.; providing a

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timeframe for the sale of property under an order or

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judgment when the property was secured through a subprime

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loan; defining "subprime loan"; requiring a mortgagor to

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establish a prima facie case in the motion or pleading;

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providing requirements with respect to such pleading;

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providing for expiration of the provisions; requiring

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specified notice; providing an effective date.

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     WHEREAS, the Florida Legislature finds that the subprime

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mortgage lending industry has grown rapidly in Florida during the

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last few years, and

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     WHEREAS, the Center for Responsible Lending has estimated

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that one in five subprime loans will end up in foreclosure, and

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     WHEREAS, Florida ranks second in the country in the highest

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number of properties currently in foreclosure, and

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     WHEREAS, foreclosures strip Florida families of their most

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valuable asset, decrease the value of property in the proximity

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of foreclosures, and result in a loss of tax revenue that

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supports vital public services such as police, firefighters,

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public schools, and other services that support local

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communities, and

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     WHEREAS, abandoned and neglected homes that have been

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foreclosed upon attract crime and further add to the devaluation

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of surrounding property, and

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     WHEREAS, many homeowners facing foreclosure report that

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their lender never offered them an opportunity for loan

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modification, and

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     WHEREAS, the Fannie Mae Foundation and Freddie Mac have

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determined that one-third to one-half of borrowers with subprime

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mortgage loans could have qualified for a loan with better terms,

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and

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     WHEREAS, Florida's judicial system is overwhelmed with

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foreclosure filings that are the result of subprime mortgage

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lending, and

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     WHEREAS, incentives for parties to resolve foreclosure

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disputes are in the best interests of Florida taxpayers, NOW,

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THEREFORE,

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

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     Section 1. This act may be cited as the "Florida

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Foreclosure Relief Act."

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     Section 2.  Subsection (1) of section 45.031, Florida

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Statutes, is amended to read:

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     45.031  Judicial sales procedure.--In any sale of real or

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personal property under an order or judgment, the procedures

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provided in this section and ss. 45.0315-45.035 may be followed

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as an alternative to any other sale procedure if so ordered by

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the court.

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     (1)  FINAL JUDGMENT.--

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     (a)  In the order or final judgment, the court shall direct

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the clerk to sell the property at public sale on a specified day

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that shall be not less than 20 days or more than 35 days after

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the date thereof, on terms and conditions specified in the order

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or judgment. A sale may be held more than 35 days after the date

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of final judgment or order if the plaintiff or plaintiff's

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attorney consents to such time. The final judgment shall contain

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the following statement in conspicuous type:

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IF THIS PROPERTY IS SOLD AT PUBLIC AUCTION, THERE MAY BE

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ADDITIONAL MONEY FROM THE SALE AFTER PAYMENT OF PERSONS WHO ARE

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ENTITLED TO BE PAID FROM THE SALE PROCEEDS PURSUANT TO THIS FINAL

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JUDGMENT.

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IF YOU ARE A SUBORDINATE LIENHOLDER CLAIMING A RIGHT TO FUNDS

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REMAINING AFTER THE SALE, YOU MUST FILE A CLAIM WITH THE CLERK NO

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LATER THAN 60 DAYS AFTER THE SALE. IF YOU FAIL TO FILE A CLAIM,

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YOU WILL NOT BE ENTITLED TO ANY REMAINING FUNDS.

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     (b) A sale of property may not be held less than 110 days

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or more than 125 days after the date of final judgment or order

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if the mortgagor or mortgagor's attorney demonstrates that the

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property was secured through a subprime loan. "Subprime loan"

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means:

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     1. For an adjustable rate loan secured by a first lien on a

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dwelling that can increase in interest rate but not decrease in

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interest rate below the fully indexed rate at the time of

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origination, a loan for which the annual percentage rate is

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greater than 2 percentage points above the weekly average yield

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on 5-year United States Treasury securities as of the 15th day of

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the month immediately preceding the loan closing.

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     2. For all other loans secured by a first lien on a

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dwelling, a loan for which the annual percentage rate is greater

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than 3 percentage points above the weekly average yield on 5-year

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United States Treasury securities as of the 15th day of the month

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immediately preceding the loan closing.

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     3. For loans secured by a subordinate lien on a dwelling or

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a mortgage secured solely by a security interest in a

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manufactured home, a loan for which the annual percentage rate is

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greater than 5 percentage points above the weekly average yield

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on 5-year United States Treasury securities as of the 15th day of

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the month immediately preceding the loan closing.

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     4. For all loans in which the total loan amount is $30,000

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or more, the total points and fees on the loan, excluding up to 2

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bona fide discount points, paid by the borrower at or before the

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closing exceed 3 percent of the total loan amount; for all loans

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in which the total loan amount is less than $30,000, the total

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points and fees on the loan, excluding up to 2 bona fide discount

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points, paid by the borrower at or before closing exceed the

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lesser of $900 or 6 percent of the total loan amount.

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     (c) A mortgagor must establish a prima facie case in the

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motion or pleading. Such pleading must establish that:

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     1. The mortgagor is the owner of the property subject to

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foreclosure;

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     2. The real property subject to foreclosure is the

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principal residence of the mortgagor;

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     3. The mortgagor owns no other real estate;

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     4. The real property is a residential building containing

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less than six dwelling units; and

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     5. The real property is subject to a mortgage, second

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mortgage, or home equity loan which is, or is likely to become,

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the subject of foreclosure.

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Paragraphs (b) and (c) shall expire on May 1, 2010, unless

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reenacted by the Legislature prior to that date.

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     (d) If the mortgagor or mortgagor's attorney demonstrates

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that the property being foreclosed upon is secured through a

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subprime loan, a notice shall be sent by the plaintiff to the

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defendant's last known address containing contact information for

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loan counseling services certified by the United States

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Department of Housing and Urban Development.

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     (e)(b) If the property being foreclosed on has qualified

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for the homestead tax exemption in the most recent approved tax

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roll, the final judgment shall additionally contain the following

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statement in conspicuous type:

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IF YOU ARE THE PROPERTY OWNER, YOU MAY CLAIM THESE FUNDS

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YOURSELF. YOU ARE NOT REQUIRED TO HAVE A LAWYER OR ANY OTHER

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REPRESENTATION AND YOU DO NOT HAVE TO ASSIGN YOUR RIGHTS TO

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ANYONE ELSE IN ORDER FOR YOU TO CLAIM ANY MONEY TO WHICH YOU ARE

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ENTITLED. PLEASE CHECK WITH THE CLERK OF THE COURT,   (INSERT

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INFORMATION FOR APPLICABLE COURT)   WITHIN TEN (10) DAYS AFTER

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THE SALE TO SEE IF THERE IS ADDITIONAL MONEY FROM THE FORECLOSURE

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SALE THAT THE CLERK HAS IN THE REGISTRY OF THE COURT.

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IF YOU DECIDE TO SELL YOUR HOME OR HIRE SOMEONE TO HELP YOU CLAIM

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THE ADDITIONAL MONEY, YOU SHOULD READ VERY CAREFULLY ALL PAPERS

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YOU ARE REQUIRED TO SIGN, ASK SOMEONE ELSE, PREFERABLY AN

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ATTORNEY WHO IS NOT RELATED TO THE PERSON OFFERING TO HELP YOU,

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TO MAKE SURE THAT YOU UNDERSTAND WHAT YOU ARE SIGNING AND THAT

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YOU ARE NOT TRANSFERRING YOUR PROPERTY OR THE EQUITY IN YOUR

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PROPERTY WITHOUT THE PROPER INFORMATION. IF YOU CANNOT AFFORD TO

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PAY AN ATTORNEY, YOU MAY CONTACT   (INSERT LOCAL OR NEAREST LEGAL

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AID OFFICE AND TELEPHONE NUMBER)   TO SEE IF YOU QUALIFY

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FINANCIALLY FOR THEIR SERVICES. IF THEY CANNOT ASSIST YOU, THEY

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MAY BE ABLE TO REFER YOU TO A LOCAL BAR REFERRAL AGENCY OR

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SUGGEST OTHER OPTIONS. IF YOU CHOOSE TO CONTACT   (NAME OF LOCAL

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OR NEAREST LEGAL AID OFFICE)   FOR ASSISTANCE, YOU SHOULD DO SO

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AS SOON AS POSSIBLE AFTER RECEIPT OF THIS NOTICE.

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     (f)(c) A copy of the final judgment shall be furnished by

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the clerk by first class mail to the last known address of every

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party to the action or to the attorney of record for such party.

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Any irregularity in such mailing, including the failure to

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include this statement in any final judgment or order, shall not

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affect the validity or finality of the final judgment or order or

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any sale held pursuant to the final judgment or order. Any sale

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held more than 35 days after the final judgment or order shall

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not affect the validity or finality of the final judgment or

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order or any sale held pursuant to such judgment or order.

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     Section 3.  This act shall take effect July 1, 2008.