HB 1191

1	A bill to be entitled
2	An act relating to foreclosure proceedings; providing a
3	short title; amending s. 45.031, F.S.; providing
4	requirements for publication of a notice of foreclosure
5	sale; revising requirements for a notice of sale; amending
6	s. 45.035, F.S.; conforming cross-references; amending s.
7	50.011, F.S.; providing requirements for a notice of
8	foreclosure sale on an Internet website; amending ss.
9	69.041 and 201.02, F.S.; conforming cross-references;
10	amending s. 701.02, F.S.; entitling mortgagors, county
11	clerks, and circuit courts to rely on a full or partial
12	release, discharge, consent, joinder, subordination,
13	satisfaction, or assignment of a mortgage in certain
14	circumstances; amending s. 701.03, F.S.; providing for an
15	estoppel certificate for a mortgagor, upon request;
16	providing requirements for certificates; providing for a
17	summary proceeding to compel compliance; requiring
18	cancellation of a mortgage within a specified period after
19	all money due is paid; providing for a summary proceeding
20	to compel compliance; providing for county clerk to cancel
21	the mortgage of record in certain circumstances following
22	judicial action; requiring a deposit by a plaintiff in an
23	action seeking to cancel a mortgage; authorizing a service
24	charge; providing for award of attorney's fees; creating
25	s. 702.015, F.S.; providing requirements for foreclosure
26	of residential home loans; providing requirements for
27	complaints; amending s. 702.035, F.S.; revising
28	requirements for legal notices concerning foreclosure
29	proceedings; specifying who must receive notice; providing
30	requirements for printing and wording of notice; amending
31	s. 702.06, F.S.; providing requirements for deficiency
32	judgments in proceedings involving certain owner-occupied
33	properties; precluding deficiency judgments in certain
34	circumstances; providing for disposition of moneys
35	remaining in the hands of a receiver of the rents and
36	profits appointed in the action; amending s. 702.065,
37	F.S.; revising the period in which a judgment must be
38	entered in an uncontested proceeding; revising provisions
39	relating to determination of the amount of a reasonable
40	attorney's fee in an uncontested proceeding without
41	requiring a hearing; creating s. 702.11, F.S.; providing
42	an alternative procedure to foreclosure for certain
43	residential properties; specifying when the procedure may
44	be used; providing for notice; providing for objections;
45	providing for establishment of abandonment of property in
46	certain circumstances; providing requirements for a deed
47	in lieu of foreclosure for certain purposes; specifying
48	when a nonhomestead property subject to a residential
49	mortgage is deemed to have no equity for certain purposes;
50	providing for return of excess funds following sale;
51	providing for an election to proceed with the alternative
52	procedure to foreclosure; providing for redemption;
53	providing for an order for redemption or notice thereof;
54	providing for a public sale; providing for resolution of a
55	dispute among defendants over the right to redeem;
56	providing for an issuance of a certification of redemption
57	if the property is redeemed; providing for a judgment
58	debarring and foreclosing the equity of redemption of the
59	defendants and each of them and any person claiming by,
60	through, or under them, and adjudging the plaintiff vested
61	with a valid and indefeasible estate in the mortgaged
62	premises if specified requirements are met; specifying the
63	effect of an entry of judgment; providing an effective
64	date.
65
66	Be It Enacted by the Legislature of the State of Florida:
67
68	Section 1.  This act may be cited as the "Florida Fair
69	Foreclosure Act."
70	Section 2.  Subsections (2) through (10) of section 45.031,
71	Florida Statutes, are renumbered as subsections (3) through
72	(11), respectively, a new subsection (2) is added to that
73	section, and present subsections (2) and (10) of that section
74	are amended, to read:
75	45.031  Judicial sales procedure.-In any sale of real or
76	personal property under an order or judgment, the procedures
77	provided in this section and ss. 45.0315-45.035 may be followed
78	as an alternative to any other sale procedure if so ordered by
79	the court.
80	(2)  PUBLICATION OF SALE.-Notice of sale shall be
81	published:
82	(a)  In a newspaper of general circulation, as defined in
83	chapter 50, published in the county where the sale is to be held
84	once a week for 2 consecutive weeks. The second publication
85	shall be at least 5 days before the sale. On each page of the
86	newspaper on which such notices are printed, the newspaper shall
87	print the Internet website address of the clerk of the court for
88	the county in which the sale is to be held. It shall also print
89	the Internet website address of www.floridapublicnotices.com.
90	These Internet website addresses shall be printed in a clear,
91	large font;
92	(b)  On the Internet website of the newspaper in which the
93	notice is published by a clear and conspicuous hyperlink from
94	the website's home page for 20 consecutive days before the sale.
95	The newspaper website containing the notice shall also contain a
96	clean and conspicuous hyperlink to the website of the clerk of
97	the court for the county in which the sale is to be held; or
98	(c)  On the Internet website located at
99	www.floridapublicnotices.com by a clear and conspicuous
100	hyperlink on that website.
101	(3)(2)  NOTICE PUBLICATION OF SALE.-Notice of sale shall be
102	published once a week for 2 consecutive weeks in a newspaper of
103	general circulation, as defined in chapter 50, published in the
104	county where the sale is to be held. The second publication
105	shall be at least 5 days before the sale. The notice of sale
106	shall contain:
107	(a)  A description of the property to be sold.
108	(b)  The time and place of sale.
109	(c)  A statement that the sale will be made pursuant to the
110	order or final judgment.
111	(d)  The caption of the action.
112	(e)  The name of the clerk making the sale.
113	(f)  A statement of the name of the newspaper, and the
114	website home page address, in or on which the notice will be
115	published.
116	(g)(f)  A statement that any person claiming an interest in
117	the surplus from the sale, if any, other than the property owner
118	as of the date of the lis pendens must file a claim within 60
119	days after the sale.
120
121	The court, in its discretion, may enlarge the time of the sale.
122	Notice of the changed time of sale shall be published as
123	provided in this section herein.
124	(11)(10)  ELECTRONIC SALES.-The clerk may conduct the sale
125	of real or personal property under an order or judgment pursuant
126	to this section by electronic means. Such electronic sales shall
127	comply with the procedures provided in this chapter, except that
128	electronic proxy bidding shall be allowed and the clerk may
129	require bidders to advance sufficient funds to pay the deposit
130	required by subsection (4) (3). The clerk shall provide access
131	to the electronic sale by computer terminals open to the public
132	at a designated location and shall accept an advance credit
133	proxy bid from the plaintiff of any amount up to the maximum
134	allowable credit bid of the plaintiff. A clerk who conducts such
135	electronic sales may receive electronic deposits and payments
136	related to the sale.
137	Section 3.  Subsection (3) of section 45.035, Florida
138	Statutes, is amended to read:
139	45.035  Clerk's fees.-In addition to other fees or service
140	charges authorized by law, the clerk shall receive service
141	charges related to the judicial sales procedure set forth in ss.
142	45.031-45.034 and this section:
143	(3)  If the sale is conducted by electronic means, as
144	provided in s. 45.031(11)(10), the clerk shall receive an
145	additional service charge not to exceed $70 for services in
146	conducting or contracting for the electronic sale, which service
147	charge shall be assessed as costs and paid by the winning
148	bidder. If the clerk requires advance electronic deposits to
149	secure the right to bid, such deposits shall not be subject to
150	the fee under s. 28.24(10). The portion of an advance deposit
151	from a winning bidder required by s. 45.031(4)(3) shall, upon
152	acceptance of the winning bid, be subject to the fee under s.
153	28.24(10).
154	Section 4.  Section 50.011, Florida Statutes, is amended to
155	read:
156	50.011  Where and in what language legal notices to be
157	published.-
158	(1)  Whenever by statute an official or legal advertisement
159	or a publication, or notice in a newspaper has been or is
160	directed or permitted in the nature of or in lieu of process, or
161	for constructive service, or in initiating, assuming, reviewing,
162	exercising or enforcing jurisdiction or power, or for any
163	purpose, including all legal notices and advertisements of
164	sheriffs and tax collectors, the contemporaneous and continuous
165	intent and meaning of such legislation all and singular,
166	existing or repealed, is and has been and is hereby declared to
167	be and to have been, and the rule of interpretation is and has
168	been, a publication in a newspaper printed and published
169	periodically once a week or oftener, containing at least 25
170	percent of its words in the English language, entered or
171	qualified to be admitted and entered as periodicals matter at a
172	post office in the county where published, for sale to the
173	public generally, available to the public generally for the
174	publication of official or other notices and customarily
175	containing information of a public character or of interest or
176	of value to the residents or owners of property in the county
177	where published, or of interest or of value to the general
178	public.
179	(2)  As allowed by s. 45.031(2), the electronic publication
180	of a notice of sale must be on a website having at least 25
181	percent of its words in the English language, and the website on
182	which the notice of sale is posted must be available for viewing
183	by the general public without a registration processes of any
184	sort and during all hours of each day. The proof of publication
185	affidavit must contain in its heading the common name and the
186	Uniform Resource Locator (URL) of the website where posting
187	occurred, a copy of the notice of sale, and include the dates on
188	which posting occurred.
189	Section 5.  Paragraph (a) of subsection (4) of section
190	69.041, Florida Statutes, is amended to read:
191	69.041  State named party; lien foreclosure, suit to quiet
192	title.-
193	(4)(a)  The Department of Revenue has the right to
194	participate in the disbursement of funds remaining in the
195	registry of the court after distribution pursuant to s.
196	45.031(8)(7). The department shall participate in accordance
197	with applicable procedures in any mortgage foreclosure action in
198	which the department has a duly filed tax warrant, or interests
199	under a lien arising from a judgment, order, or decree for
200	support, as defined in s. 409.2554, or interest in an
201	unemployment compensation tax lien under contract with the
202	Agency for Workforce Innovation through an interagency agreement
203	pursuant to s. 443.1316, against the subject property and with
204	the same priority, regardless of whether a default against the
205	department, the Agency for Workforce Innovation, or the former
206	Department of Labor and Employment Security has been entered for
207	failure to file an answer or other responsive pleading.
208	Section 6.  Subsection (9) of section 201.02, Florida
209	Statutes, is amended to read:
210	201.02  Tax on deeds and other instruments relating to real
211	property or interests in real property.-
212	(9)  A certificate of title issued by the clerk of court
213	under s. 45.031(6)(5) in a judicial sale of real property under
214	an order or final judgment issued pursuant to a foreclosure
215	proceeding is subject to the tax imposed by subsection (1).
216	However, the amount of the tax shall be computed based solely on
217	the amount of the highest and best bid received for the property
218	at the foreclosure sale. This subsection is intended to clarify
219	existing law and shall be applied retroactively.
220	Section 7.  Subsection (5) of section 701.02, Florida
221	Statutes, is amended to read:
222	701.02  Assignment not effectual against creditors unless
223	recorded and indicated in title of document; applicability.-
224	(5)  Notwithstanding subsection (4), a creditor, mortgagor,
225	or subsequent purchaser of real property or any interest
226	therein, for valuable consideration and without notice, or the
227	county clerk or the circuit court in any action to enforce a
228	promissory note, may is entitled to rely on a full or partial
229	release, discharge, consent, joinder, subordination,
230	satisfaction, or assignment of a mortgage upon such property
231	made by the mortgagee of record, without regard to the filing of
232	any Uniform Commercial Code financing statement that purports to
233	perfect a security interest in the mortgage or in a promissory
234	note or other right to payment or performance secured by the
235	mortgage, and the filing of any such financing statement does
236	not constitute notice for the purposes of this section. For the
237	purposes of this subsection, the term "mortgagee of record"
238	means the person named as the mortgagee in the recorded mortgage
239	or, if an assignment of the mortgage has been recorded in
240	accordance with this section, the term "mortgagee of record"
241	means the assignee named in the recorded assignment.
242	Section 8.  Section 701.03, Florida Statutes, is amended to
243	read:
244	701.03  Estoppel certificate; cancellation.-
245	(1)  Within 15 days after the date on which a request for
246	an estoppel certificate is received from a mortgagor, or his or
247	her designee, requesting a payoff amount of the mortgage as of a
248	certain date, the mortgagee shall provide a certificate signed
249	by an officer or authorized agent of the mortgagee stating the
250	principal balance of the mortgage note, all accrued interest,
251	and any other charges required by the mortgagee to satisfy the
252	mortgage as of the date requested by the mortgagor, or his or
253	her designee, with a per diem thereafter. The mortgagee may
254	charge a fee for the preparation of the certificate and the
255	amount of the fee must be stated on the certificate Whenever the
256	amount of money due on any mortgage shall be fully paid, the
257	mortgagee or assignee shall within 60 days thereafter cancel the
258	same in the manner provided by law.
259	(a)  The mortgagor may rely on the certificate and shall be
260	entitled to the benefits thereof.
261	(b)  A summary proceeding pursuant to s. 51.011 may be
262	brought to compel compliance with this section, and the
263	prevailing party may recover reasonable attorney's fees.
264	(2)  Within 60 days after a mortgage is fully paid, the
265	mortgagee or assignee shall cancel the mortgage in the manner
266	provided by law. A summary proceeding pursuant to s. 51.011 may
267	be brought to compel compliance with this section, and the
268	prevailing party may recover reasonable attorney's fees.
269	(3)  In an action brought by any mortgagor or party in
270	interest on a mortgage on real estate or chattels, or both,
271	recorded in the office of the county clerk, the circuit court
272	may direct the county clerk to cancel the mortgage of record, if
273	the plaintiff:
274	(a)  Presents satisfactory proof that all sums secured by
275	the mortgage which are due and payable have been fully paid;
276	(b)  Deposits in the clerk's office a sum of money in an
277	amount equal to the principal amount plus accrued interest and
278	any additional charges due from the mortgagor to the mortgagee
279	as shown on the most recent loan payment statement or monthly
280	invoice from the mortgagee to mortgagor, which statement shall
281	be no earlier than 1 month before the date the mortgagor
282	deposits the funds in the clerk's office, plus interest thereon
283	at the rate stated in the note for 3 months, plus $1,000, to
284	apply on any attorney's fees and court costs that may be taxed
285	in any proceeding arising under this section. Such deposit shall
286	be conditioned to pay any judgment or decree that may be
287	rendered for the payment in full of the mortgage for which such
288	funds are deposited, including accrued interest and any
289	additional charges due from the mortgagor to the mortgagee. Upon
290	receipt of such deposit, the clerk shall make and record a
291	certificate showing the transfer of the lien of the mortgage
292	from the real property to the security and shall mail a copy
293	thereof by registered or certified mail to the mortgagee at the
294	address stated on the loan payment statement. Upon filing the
295	certificate of transfer, the real property shall be released
296	from the lien and operation of the mortgage and the lien shall
297	be transferred to such security. The clerk is entitled to a
298	service charge for making and serving the certificate in an
299	amount not to exceed $20. Any excess of the security over the
300	aggregate amount of any judgments or decrees that may be
301	rendered for the payment in full of the mortgage for which such
302	funds are deposited, including accrued interest and any
303	additional charges due from the mortgagor to the mortgagee,
304	shall be repaid to the party filing the security or his or her
305	successor in interest. Any deposit of money shall be considered
306	as paid into court and shall be subject to the provisions of law
307	relative to payments of money into court and the disposition of
308	such money. Any party having an interest in such security from
309	the mortgage lien that was transferred may file a complaint in
310	chancery in the circuit court of the county where such security
311	is deposited or file a motion in a pending action to foreclose
312	on the mortgage for an order to require additional security,
313	reduction of security, payment of discharge thereof, or any
314	other matter affecting the security. If the court finds that the
315	amount of the deposit in excess of the amount due to satisfy the
316	mortgage as provided in this paragraph is insufficient to pay
317	the mortgagee's attorney's fees and court costs incurred in the
318	action to foreclose the mortgage, the court may increase the
319	amount of the cash deposit. If it appears that the mortgage lien
320	has been satisfied of record, the clerk shall return the
321	security upon request of the person depositing or filing it; or
322	(c)  Presents such special circumstances as to satisfy the
323	court that the mortgagee and his or her successors or assigns,
324	if any, in right, title, and interest, have no further interest
325	in the mortgage or the debt secured thereby.
326	Section 9.  Section 702.015, Florida Statutes, is created
327	to read:
328	702.015  Foreclosure of residential home loans.-Any
329	complaint served in a proceeding initiated pursuant to this
330	section which seeks to foreclose a mortgage securing a lien on a
331	residential one-family to four-family dwelling unit must contain
332	affirmative allegations expressly made by the plaintiff at the
333	time the proceeding is commenced that:
334	(1)  The plaintiff is the owner and holder of the subject
335	note and mortgage in due course, or has been expressly delegated
336	the authority to institute a mortgage foreclosure action in
337	writing by the owner and holder of the subject mortgage and
338	note, which authorization shall be attached as an exhibit to the
339	complaint.
340	(2)  The complaint details a clear chain of custody for the
341	promissory note and mortgage which is the subject of the action.
342	(3)  All assignments of the note and mortgage are attached
343	as exhibits to the complaint.
344	Section 10.  Section 702.035, Florida Statutes, is amended
345	to read:
346	702.035  Legal notice concerning foreclosure proceedings.-
347	(1)  The foreclosing party in a mortgage foreclosure action
348	involving residential real property shall provide notice to:
349	(a)  Any mortgagor having an interest in the property and
350	record title owner of the property if the action relates to an
351	owner-occupied one-family to four-family dwelling unit; and
352	(b)  Any tenant of a dwelling unit in the property in
353	accordance with this section.
354	(2)  The notice required under paragraph (1)(a) shall:
355	(a)  Be delivered with the summons and complaint. Such
356	notice shall be in bold, 14-point type and the title of the
357	notice shall be in bold, 20-point type. The notice shall be on
358	its own page.
359	(b)  Appear as follows:
360
361	NOTICE YOU ARE IN DANGER OF LOSING YOUR HOME
362	If you fail to respond to the summons and complaint in this
363	foreclosure action, you may lose your home. Please read the
364	summons and complaint carefully. You should immediately
365	contact an attorney or your local legal aid office to
366	obtain advice on how to protect yourself. Sending a payment
367	to your mortgage company will not stop this foreclosure
368	action.
369
370	YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE
371	ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING
372	THE RESPONSE WITH THE COURT. THIS LAWSUIT DOES NOT MEAN
373	THAT YOU MUST IMMEDIATELY MOVE OUT OF YOUR PROPERTY.
374
375	SOURCES OF INFORMATION AND ASSISTANCE:
376	The state encourages you to become informed about your
377	options in foreclosure. In addition to seeking assistance
378	from an attorney or legal aid office, there are government
379	agencies and nonprofit organizations that you may contact
380	for cost-free information about possible options, including
381	trying to work with your lender during this process.
382
383	FORECLOSURE RESCUE SCAMS:
384	Be careful of people who approach you with offers to "save"
385	your home. There are individuals who watch for notices of
386	foreclosure actions in order to unfairly profit from a
387	homeowner's distress. You should be extremely careful about
388	any such promises and any suggestions that you pay them a
389	fee or sign over your deed. State law requires anyone
390	offering such services for profit to enter into a contract
391	which fully describes the services they will perform and
392	fees they will charge, and which prohibits them from taking
393	any money from you until they have completed all such
394	promised services.
395
396	(3)  The notice to any tenant required under paragraph
397	(1)(b) shall:
398	(a)  Be delivered with the summons and complaint. The
399	foreclosing party shall provide its name, address, and telephone
400	number on the notice. The notice shall be printed on colored
401	paper that is different than the color of the summons and
402	complaint, and the title of the notice shall be in bold, 14-
403	point type. The notice shall be on its own page.
404	(b)  Appear as follows:
405
406	NOTICE TO TENANTS OF BUILDINGS IN FORECLOSURE
407	Florida law requires that we provide you this notice about
408	the foreclosure process. Please read it carefully.
409
410	We, ...(name of foreclosing party)..., are the foreclosing
411	party and are located at ...(foreclosing party's
412	address).... We can be reached at ...(foreclosing party's
413	telephone number)....
414
415	The dwelling unit where your apartment is located is the
416	subject of a foreclosure proceeding. If you have a lease,
417	are not the owner of the residence, and the lease requires
418	payment of rent that at the time it was entered into was
419	not substantially less than the fair market rent for the
420	property, you may be entitled to remain in occupancy for
421	the remainder of your lease term. If you do not have a
422	lease, you will be entitled to remain in your home until 90
423	days after any person or entity who acquires title to the
424	property provides you with a notice. The notice shall
425	provide information regarding the name and address of the
426	new owner and your rights to remain in your home. These
427	rights are in addition to any others you may have if you
428	are a subsidized tenant under federal, state, or local law
429	or if you are a tenant subject to rent control, rent
430	stabilization, or a federal statutory scheme.
431
432	(4)  Whenever a legal advertisement, publication, or notice
433	relating to a foreclosure proceeding is required to be placed in
434	a newspaper and posted in a website online, it is the
435	responsibility of the petitioner or petitioner's attorney to
436	place such advertisement, publication, or notice. For counties
437	having with more than 1 million total population as reflected in
438	the 2000 Official Decennial Census of the United States Census
439	Bureau as shown on the official website of the United States
440	Census Bureau, any notice of publication required by this
441	section shall be deemed to have been published in accordance
442	with the law if the notice is published in a newspaper that has
443	been entered as a periodical matter at a post office in the
444	county in which the newspaper is published, is published a
445	minimum of 5 days a week, exclusive of legal holidays, and has
446	been in existence and published a minimum of 5 days a week,
447	exclusive of legal holidays, for 1 year or is a direct successor
448	to a newspaper that has been in existence for 1 year that has
449	been published a minimum of 5 days a week, exclusive of legal
450	holidays. The advertisement, publication, or notice shall be
451	placed directly by the attorney for the petitioner, by the
452	petitioner if acting pro se, or by the clerk of the court. Only
453	the actual costs charged by the newspaper for the advertisement,
454	publication, or notice may be charged as costs in the action.
455	Section 11.  Section 702.06, Florida Statutes, is amended
456	to read:
457	702.06  Deficiency decree; common-law suit to recover
458	deficiency.-
459	(1)  In all suits for the foreclosure of mortgages
460	heretofore or hereafter executed, the entry of a deficiency
461	decree for any portion of a deficiency, should one exist, shall
462	be within the sound judicial discretion of the court, but the
463	complainant shall also have the right to sue at common law to
464	recover such deficiency, provided no suit at law to recover such
465	deficiency shall be maintained against the original mortgagor in
466	cases where the mortgage is for the purchase price of the
467	property involved and where the original mortgagee becomes the
468	purchaser thereof at foreclosure sale and also is granted a
469	deficiency decree against the original mortgagor.
470	(2)(a)  In respect to an owner-occupied one-family to four-
471	family dwelling unit, if a person liable to the plaintiff for
472	the payment of the debt secured by the mortgage is made a
473	defendant in the action, and has appeared before the court or
474	been personally served with the summons, the final judgment may
475	award payment by him or her of the whole residue, or so much
476	thereof as the court may determine to be just and equitable, of
477	the debt remaining unsatisfied, after a sale of the mortgaged
478	property and the application of the proceeds, pursuant to the
479	directions contained in such judgment, with the amount thereof
480	to be determined by the court as provided in this subsection.
481	(b)  Simultaneously with the making of a motion for an
482	order confirming the sale, if made within 180 days after the
483	date of the consummation of the sale by the delivery of the
484	proper deed of conveyance to the purchaser, the party to whom
485	such residue is owing may make a motion in the action for leave
486	to enter a deficiency judgment upon notice to the party against
487	whom such judgment is sought or the attorney for that party. The
488	notice shall be served personally or in such other manner as the
489	court may direct. Upon such motion, the court, regardless of
490	whether the respondent appears, shall determine the fair and
491	reasonable market value of the mortgaged premises as of the date
492	the premises were bid in at auction or such nearest earlier date
493	as there shall have been any market value thereof and shall make
494	an order directing the entry of a deficiency judgment. Such
495	deficiency judgment shall be for an amount equal to the sum of
496	the amount owing by the party liable as determined by the
497	judgment with interest, plus the amount owing on all prior liens
498	and encumbrances with interest, plus costs and disbursements of
499	the action including the receiver's fee and disbursements, less
500	the market value as determined by the court or the sale price of
501	the property, whichever is higher.
502	(c)  If a motion for a deficiency judgment is not made as
503	prescribed in this subsection, the proceeds of the sale,
504	regardless of amount, shall be deemed to be in full satisfaction
505	of the mortgage debt and a right to recover any deficiency in
506	any action or proceeding subsequently does not exist.
507	(3)  Notwithstanding subsection (2) and irrespective of
508	whether a motion for a deficiency judgment has been made or, if
509	made, has been denied, the court shall direct that all moneys
510	remaining in the hands of a receiver of the rents and profits
511	appointed in the action, after the payment of the receiver's
512	fees and the expenses of the receivership, or any moneys
513	remaining in the hands of a mortgagee in possession or an
514	assignee of the rents and profits of the premises, shall be paid
515	to the plaintiff to the extent of the amount, if any, by which
516	the judgment of foreclosure and sale exceeds the amount paid for
517	the property upon the sale.
518	Section 12.  Section 702.065, Florida Statutes, is amended
519	to read:
520	702.065  Final judgment in uncontested proceedings where
521	deficiency judgment waived; attorney's fees when default
522	judgment entered.-
523	(1)  In uncontested mortgage foreclosure proceedings in
524	which the mortgagee waives the right to recoup any deficiency
525	judgment, the court shall enter final judgment within 45 90 days
526	from the date of the close of pleadings. For the purposes of
527	this subsection, a mortgage foreclosure proceeding is
528	uncontested if a default has been entered against all defendants
529	or no response an answer not contesting the foreclosure has been
530	timely filed or a default judgment has been entered by the
531	court.
532	(2)  In a mortgage foreclosure proceeding of a residential
533	one-family to four-family dwelling unit, when a default judgment
534	has been entered against the mortgagor and the note or mortgage
535	provides for the award of reasonable attorney's fees, it is not
536	necessary for the court to hold a hearing or adjudge the
537	requested attorney's fees to be reasonable if the fees do not
538	exceed the greater of 1.5 3 percent of the principal amount owed
539	at the time of filing the complaint or $1,500, even if the note
540	or mortgage does not specify the percentage of the original
541	amount that would be paid as liquidated damages. Such fees
542	constitute liquidated damages in any proceeding to enforce the
543	note or mortgage. This section does not preclude a challenge to
544	the reasonableness of the attorney's fees.
545	Section 13.  Section 702.11, Florida Statutes, is created
546	to read:
547	702.11  Alternative procedure to foreclosure.-
548	(1)  An alternative procedure to foreclosure without sale
549	for the disposition of a residential one-family to four-family
550	dwelling unit subject to foreclosure is established under
551	subsection (2) to allow a lender to elect to proceed according
552	to this section and the Florida Rules of Civil Procedure.
553	(2)(a)  The alternative procedure to foreclosure without
554	sale provided in this section may only be used if:
555	1.  The debtor has consented in writing to the use of this
556	procedure;
557	2.  The debtor has abandoned the property which is the
558	subject of the residential mortgage;
559	3.  The debtor has voluntarily surrendered the property
560	which is the subject of the residential mortgage by signing a
561	deed in lieu of foreclosure in favor of the lender; or
562	4.  There is no equity in a nonhomestead property which is
563	the subject of the residential mortgage, as defined in
564	subsection (5); and
565	(b)  The following are conditions are met:
566	1.  The debtor is not on active duty with the United States
567	military.
568	2.  The lender provides 30 days' written notice by ordinary
569	mail and certified mail, return receipt requested, to the last
570	known address of all current mortgagors, mortgagees, record
571	titleholders, and lienholders of record and also to the address
572	of the property being foreclosed. The notice shall inform the
573	aforementioned parties that the lender is proceeding under an
574	alternative procedure to foreclosure authorized by this section
575	in substantially the form below:
576
577	NOTICE OF ALTERNATIVE PROCEDURE TO FORECLOSURE WITHOUT SALE
578	Florida Law requires that we provide you this notice about
579	the alternative foreclosure process. Please read it
580	carefully.
581
582	You have been identified as a current mortgagor, mortgagee,
583	record titleholder, or lienholder of record for a property
584	which is subject to foreclosure. You are hereby notified
585	that [NAME AND ADDRESS OF LENDER] is seeking to commence an
586	alternative to foreclosure procedure pursuant to s. 702.11,
587	Florida Statutes, in regard to the property located at
588	[ADDRESS]. You have 30 days in which to object to the
589	lender proceeding under s. 702.11, Florida Statutes. You
590	must notify the lender in writing within 30 days that you
591	object to this proceeding; otherwise, your right to so
592	object will be lost.
593
594	3.  The lender records a Notice of Alternative Procedure To
595	Foreclosure in the land records of the county clerk in the
596	county in which the property is situated, which notice shall be
597	recorded in the same manner as a lis pendens.
598	(c)  If the lender receives written objection from a
599	current mortgagor, mortgagee, record titleholder, or lienholder
600	of record to proceeding under this section within 30 days after
601	the mailing of the written notice, or the recording of the
602	Notice of Alternative Procedure To Foreclosure in the land
603	records, whichever is later, the lender is precluded from
604	proceeding with the alternative procedure to foreclosure in this
605	section and shall record in the land records a Notice of
606	Termination of Alternative Procedure to Foreclosure.
607	(3)  Pursuant to subparagraph (2)(a)2. and for purposes of
608	this section only, abandonment of the property subject to the
609	residential mortgage may be established only by an affidavit
610	from an individual having personal knowledge of the contents
611	thereof under penalty of perjury, setting forth the specific
612	facts upon which that conclusion is based. The affidavit shall
613	be submitted to the circuit court in the county in which the
614	property is situated at the same time that the lender applies to
615	the court for the order fixing the amount, time, and place for
616	redemption.
617	(4)  Pursuant to subparagraph (2)(a)3. and for purposes of
618	this section only, if the lender receives a deed in lieu of
619	foreclosure, the conveyance shall be effective only if the deed
620	clearly and conspicuously provides that the debtor may, without
621	penalty, rescind the conveyance within 7 days, excluding
622	Saturdays, Sundays, and legal holidays, and that such rescission
623	is effective upon delivery of a written notice to the lender or
624	its agent or upon mailing of such notice to the lender or its
625	agent by certified or registered mail, return receipt requested.
626	(5)(a)  For purposes of subparagraph (2)(a)4., a
627	nonhomestead property subject to a residential mortgage is
628	deemed to have no equity if the total unpaid balance of all
629	liens and encumbrances against the property, including
630	mortgages, tax liens, and judgments actually against the
631	property (not including similar-name judgments), and any other
632	lien, is equal to or greater than 150 percent of the fair market
633	value of the property as that value has been established by the
634	county property appraiser in and for the county in which the
635	property is situated, or as otherwise agreed between the lender
636	and the debtor. An affidavit, from an individual having personal
637	knowledge of the contents thereof under penalty of perjury,
638	setting forth with specificity the fair market value of the
639	property, the unpaid balance of the obligation, including all
640	mortgages and liens and the method by which the lender
641	determined that the property has no equity, with a copy of the
642	county property appraiser's valuation of the subject property
643	attached thereto, shall be submitted to the circuit court at the
644	time the lender applies for the order fixing the amount, time,
645	and place for redemption.
646	(b)  If a lender proceeds with the alternative procedure to
647	foreclosure under this section, the debtor not having objected
648	and requested a public sale pursuant to this section, the lender
649	resells the foreclosed property after judgment, the resale
650	occurs within 12 months after judgment, and the resale price
651	received by the lender is in excess of the amount necessary to
652	repay the debt, interest, and reasonable costs of the lender,
653	and all carrying charges, including, but not limited to, the
654	reasonable costs of maintenance and resale, the lender shall
655	deposit any such excess in the registry of the clerk of the
656	court in accordance with the Florida Rules of Civil Procedure.
657	(c)  Upon deposit of any such excess with the circuit
658	court, the lender shall notify the debtor and any lienholder who
659	held a lien junior to that of the lender and whose lien was lost
660	in whole or in part as a result of the foreclosure. Such
661	notification shall be by certified mail, return receipt
662	requested, to the last known address of the debtor and such
663	lienholders. The debtor and the lienholders must apply within 6
664	months to the circuit court, in the form of an application for
665	surplus funds, upon appropriate notice to all other parties in
666	interest, to seek an order for turnover of the excess funds.
667	Failure of a lender to comply with paragraph (b) and this
668	paragraph does not affect title to the foreclosed property.
669	(6)(a)  In accordance with the Florida Rules of Civil
670	Procedure, and subject to compliance with this section, a lender
671	may elect to proceed with the alternative procedure to
672	foreclosure by filing an affidavit from an individual having
673	personal knowledge of the contents thereof, under penalty of
674	perjury, with the circuit court in which the property is
675	located.
676	(b)  The affidavit shall set forth the facts which the
677	lender alleges show that it is entitled to proceed under
678	paragraph (2)(a) and shall be supported by the proofs required
679	by this section and such other proofs as may be required by the
680	court.
681	(7)  In accordance with the Florida Rules of Civil
682	Procedure, and subject to compliance with this section, the
683	court may enter an order fixing the amount, time, and place for
684	redemption, which shall be not less than 45 days nor more than
685	60 days after the date of the order. The court may grant an
686	extension of time for good cause shown. The order shall provide
687	that:
688	(a)  The redeeming defendant must pay to the plaintiff's
689	attorney the amount fixed by the court for redemption, together
690	with interest to the date of redemption, plus all court costs.
691	(b)  Redemption shall be by cash, cashier's check, or
692	certified check and made at the office of the plaintiff's
693	attorney, if such office is located in the county where the
694	property is situated, or at such other place as designated by
695	the court, between the hours of 9 a.m. and 5 p.m. of the date
696	set by the court in the order.
697	(c)  In the absence of redemption, the defendants shall
698	stand absolutely debarred and foreclosed from all equity of
699	redemption.
700	(8)(a)  The order for redemption or notice thereof shall be
701	mailed to each defendant's last known address and, if different,
702	also to the address of the property being foreclosed. The order
703	for redemption or notice thereof shall be sent by ordinary mail
704	and certified mail, return receipt requested, within 20 days
705	after the date the order is entered, except that, as to
706	defendants whose addresses are unknown and who were served by
707	publication, no further publication of the order for redemption
708	or notice thereof need be made.
709	(b)  The notice shall:
710	1.  Inform the defendants that the plaintiff is proceeding
711	under an alternative procedure authorized by this section and
712	set out the steps of the alternative procedure;
713	2.  Inform all defendants of the terms and conditions under
714	which a defendant may request a public sale of the mortgaged
715	premises under subsection (9); and
716	3.  Clearly state that a request for a public sale made
717	more than 30 days after the date of service will not be granted,
718	except for good cause shown.
719	(9)  In any matter in which the circuit court has issued an
720	order for redemption and the lender is permitted to proceed by
721	the alternative procedure, a defendant who wishes a public sale
722	with respect to the mortgaged premises being foreclosed shall
723	submit to the court a written request for a public sale within
724	30 days after the date the order or notice thereof is served. If
725	a defendant requests a public sale within the required period,
726	and subject to compliance with this section, the court shall
727	enter a judgment of foreclosure which provides for a public sale
728	of the premises in accordance with applicable law. Any such
729	defendant who requests a public sale must post a cash deposit or
730	bond prior to the date fixed for redemption. This cash deposit
731	or bond shall be in an amount equal to 10 percent of the amount
732	declared due in the order fixing the amount, time, and place for
733	redemption and shall be held to secure the plaintiff against any
734	additional interest and costs, as well as any deficiency, as a
735	result of the public sale. The court may dispense with this
736	requirement for good cause shown. The defendant who requests a
737	public sale shall pay all expenses and costs associated with the
738	public sale.
739	(10)  In the event of any dispute among defendants over the
740	right to redeem, the court shall enter such order as is
741	necessary to secure the plaintiff pending the resolution of the
742	dispute, including, but not limited to, payment of the
743	plaintiff's additional interest and costs which accrue as a
744	result of the dispute.
745	(11)  Upon redemption, the plaintiff shall furnish the
746	redemptioner with an appropriate certificate of redemption and
747	the redemptioner shall acquire all rights provided by law and
748	equity but is not entitled to a deed or title to the mortgaged
749	premises solely by virtue of the redemption. A redemptioner in
750	proper cases may proceed to foreclose the redemptioner's
751	interest. The lender shall record a certified copy of the
752	Certificate of Redemption in the land records, and the county
753	clerk shall accept such certificate for recording.
754	(12)  In the absence of redemption, and on proof of mailing
755	of the order for redemption or notice thereof pursuant to
756	subsection (8) and an affidavit of nonredemption, the plaintiff
757	is entitled to a judgment debarring and foreclosing the equity
758	of redemption of the defendants and each of them and any person
759	claiming by, through, or under them, and adjudging the plaintiff
760	vested with a valid and indefeasible estate in the mortgaged
761	premises. Anything to the contrary notwithstanding, redemption
762	is permitted at any time up until the entry of judgment,
763	including the whole of the last day upon which judgment is
764	entered. A certified copy of the judgment shall be accepted for
765	recording by the county clerk.
766	(13)  Upon entry of a judgment vesting title in the
767	plaintiff under this section, the debt that was secured by the
768	foreclosed mortgage shall be deemed satisfied and shall be
769	canceled in accordance with s. 701.03, any deficiency is thereby
770	waived, and no party may institute any further or
771	contemporaneous action for the collection of the debt.
772	Section 14.  This act shall take effect October 1, 2011.

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