CS/HB 1523

1	A bill to be entitled
2	An act relating to homeowner relief; creating parts I, II,
3	III, IV, V, VI, VII, and VIII of chapter 52, F.S.;
4	providing general provisions for an alternative method of
5	foreclosures other than under the judicial system;
6	providing a short title; providing for scope of
7	applicability; excluding homestead property; providing
8	definitions; providing for variation by agreement;
9	providing for application of supplemental principles of
10	law and equity; providing criteria for notice and
11	knowledge; providing for transactions creating a security
12	interest; providing for time of foreclosure; providing
13	procedures, requirements, and limitations before
14	foreclosure; specifying a right to foreclose; requiring a
15	notice of default; providing a right to cure; providing
16	requirements for a notice of foreclosure; providing for a
17	meeting and meeting requirements to object to foreclosure;
18	providing a period of limitation for foreclosure;
19	providing for judicial supervision of foreclosure;
20	providing procedures and limitations for foreclosures
21	brought under the judicial system; providing for a right
22	to redeem collateral; providing authority, requirements,
23	procedures, and limitations on foreclosures by auction,
24	foreclosures by negotiated sale, and foreclosures by
25	appraisal; providing for rights after foreclosure;
26	providing for application of proceeds, transfer of title,
27	actions for damages or to set aside a foreclosure,
28	possession after foreclosure, judgments for deficiencies,
29	and determinations of amounts of a deficiency; providing
30	for effect of good faith by a debtor; providing
31	application and construction; providing authority,
32	requirements, procedures, and limitations on
33	discontinuation of a foreclosure; providing for uniformity
34	of application and construction; specifying a relation to
35	the Electronic Signatures in Global and National Commerce
36	Act; providing an effective date.
37
38	WHEREAS, Florida is still recovering from the worst housing
39	bubble in memory, and
40	WHEREAS, many Floridians are left unable to pay their
41	mortgage debt, taxes, or insurance and fees and face the
42	prospect of huge deficiency judgments, that is, they are liable
43	for mortgage debt that exceeds the value of their homes, and
44	WHEREAS, many homeowner and condominium associations are
45	struggling to maintain common areas because owners are not
46	paying dues and assessments, and
47	WHEREAS, municipalities, counties, and school districts are
48	struggling to pay for the valuable services they provide because
49	so many homeowners are not paying real estate taxes owed, and
50	WHEREAS, Florida's courts are overburdened with foreclosure
51	cases, with nearly 500,000 backlogged cases as of December 31,
52	2009, and expected delays of 18-24 month periods before
53	foreclosure cases are resolved, and
54	WHERE, local community banks are unable to make new loans
55	to small businesses to create new jobs because their capital is
56	tied up in defaulted real estate mortgages that are bogged down
57	in the courts, and
58	WHEREAS, Florida's economy will not bottom out, and
59	sustained recovery cannot begin, until real estate supply and
60	demand balance and homeowner debt issues are resolved, NOW,
61	THEREFORE,
62
63	Be It Enacted by the Legislature of the State of Florida:
64
65	Section 1.  Part I of chapter 52, Florida Statutes,
66	consisting of sections 52.101, 52.102, 52.103, 52.104, 52.105,
67	52.106, 52.107, and 52.108, is created to read:
68	PART I
69	GENERAL PROVISIONS
70	52.101  Short title; scope of applicability.-
71	(1)  This chapter may be cited as the "Homeowner Relief and
72	Housing Recovery Act."
73	(2)  In lieu of any other foreclosure remedy which may be
74	available under the laws of this state under the judicial
75	system, this chapter may, at the option of the foreclosing
76	creditor, be used to effect a foreclosure of a security
77	instrument. However, if the foreclosing creditor does not elect
78	to use this chapter to effect a foreclosure, nothing in this
79	chapter is intended to modify any other foreclosure remedy
80	available under the laws of this state.
81	52.102  Definitions.-For purposes of this chapter:
82	(1)  "Collateral" means property, real or personal, subject
83	to a security interest.
84	(2)  "Common interest community" means real property for
85	which a person is obligated to pay real property taxes,
86	insurance premiums, maintenance, or improvement of other real
87	property described in a declaration or other governing
88	documents, however denominated, by virtue of the community's or
89	association's ownership thereof or the holding of a leasehold
90	interest of at least 20 years, including renewal options
91	therein. The term "common interest community" includes a
92	community governed by a homeowners' association as defined in s.
93	720.301 and a condominium community governed by one or more
94	condominium associations as defined in s. 718.103.
95	(3)  "Day" means a calendar day.
96	(4)  "Debtor" means a person that owes payment or other
97	performance of an obligation, whether absolute or conditional,
98	primary or secondary, secured under a security instrument,
99	whether or not the security instrument imposes personal
100	liability on the debtor. The term does not include a person
101	whose sole interest in the property is a security interest.
102	(5)  "Evidence of title" means a title insurance policy, a
103	preliminary title report or binder, a title insurance
104	commitment, an attorney's opinion of title based on an
105	examination of the public records or an abstract, or any other
106	means of reporting the state of title to real estate that is
107	customary in the locality.
108	(6)  "Expenses of foreclosure" means the lesser of the
109	reasonable costs incurred by a secured creditor or the maximum
110	amounts permitted by any other laws of this state in connection
111	with a foreclosure for transmission of notices, advertising,
112	evidence of title, inspections and examinations of the
113	collateral, management and securing of the collateral, liability
114	insurance, filing and recording fees, attorneys' fees and
115	litigation expenses incurred pursuant to ss. 52.207 and 52.601
116	to the extent provided in the security instrument or authorized
117	by law, appraisal fees, the fee of the person conducting the
118	sale in the case of a foreclosure by auction, fees of court-
119	appointed receivers, and other expenses reasonably necessary to
120	the foreclosure.
121	(7)  "Foreclosing creditor" means a secured creditor who is
122	engaged in a foreclosure under this chapter.
123	(8)  "Guarantor" means a person liable for the debt of
124	another, and includes a surety and an accommodation party.
125	(9)  "Interest holder" means a person who owns a legally
126	recognized interest in real or personal property that is
127	subordinate in priority to a security interest foreclosed under
128	this chapter.
129	(10)  "Original notice of foreclosure" means the first
130	notice of foreclosure sent pursuant to s. 52.204 instituting a
131	foreclosure under this chapter.
132	(11)  "Purchase-money obligation" means an obligation
133	incurred in order to pay part or all of the purchase price of
134	residential real property collateral. An obligation is not a
135	purchase-money obligation if any part of the real property
136	securing it is not residential real property. A purchase-money
137	obligation includes an obligation:
138	(a)  Incurred to the vendor of the real property;
139	(b)  Owed to a third-party lender to pay a loan made to pay
140	part or all of the purchase price of the real property;
141	(c)  Incurred to purchase labor and materials for the
142	construction of substantial improvements on the real property;
143	or
144	(d)  To pay a loan all of the proceeds of which were used
145	to repay in full an obligation of the type described in
146	paragraphs (a)-(c).
147	(12)  "Real property" means any estate or interest in,
148	over, or under land, including minerals, structures, fixtures,
149	and other things that by custom, usage, or law pass with a
150	conveyance of land though not described or mentioned in the
151	contract of sale or instrument of conveyance. The term includes
152	the interest of a landlord or tenant and, unless under the law
153	of the state in which the property is located that interest is
154	personal property, an interest in a common interest community.
155	(13)  "Record" when used as a verb, means to take the
156	actions necessary to perfect an interest in real property under
157	the laws of this state.
158	(14)  "Record" used as a noun, means information that is
159	inscribed on a tangible medium or that is stored in an
160	electronic or other medium and is retrievable in perceivable
161	form.
162	(15)  "Residential" means:
163	(a)  As applied to an interest holder, an individual who
164	holds a possessory interest, other than a leasehold interest
165	with a duration of 1 year or less, in residential real property
166	in which a security interest exists, and any person that is
167	wholly owned and controlled by such an individual or
168	individuals.
169	(b)  As applied to a debtor, an individual who is
170	obligated, primarily or secondarily, on an obligation secured in
171	whole or in part by residential real property, and any person
172	that is wholly owned and controlled by such an individual or
173	individuals.
174	(16)  "Residential real property" means real property that,
175	when a security instrument is entered into, is used or is
176	intended by its owner to be used primarily for the personal,
177	family, or household purposes of its owner and is improved, or
178	is intended by its owner to be improved, by one to four dwelling
179	units.
180	(17)  "Secured creditor" means a creditor that has the
181	right to foreclose a security interest in real property under
182	this chapter.
183	(18)  "Security instrument" means a mortgage, deed of
184	trust, security deed, contract for deed, agreement for deed,
185	land sale contract, lease creating a security interest, or other
186	contract or conveyance that creates or provides for an interest
187	in real property to secure payment or performance of an
188	obligation, whether by acquisition or retention of a lien, a
189	lessor's interest under a lease, or title to the real property.
190	A security instrument may also create a security interest in
191	personal property. If a security instrument makes a default
192	under any other agreement a default under the security
193	instrument, the security instrument includes the other
194	agreement. The term includes any modification or amendment of a
195	security instrument, and includes a lien on real property
196	created by a record to secure an obligation owed by an owner of
197	the real property to an association in a common interest
198	community or under covenants running with the real property.
199	(19)  "Security interest" means an interest in real or
200	personal property that secures payment or performance of an
201	obligation.
202	(20)  "Sign" means:
203	(a)  Execute or adopt a tangible symbol with the present
204	intent to authenticate a record; or
205	(b)  Attach or logically associate an electronic symbol,
206	sound, or process to or with a record with the present intent to
207	authenticate a record.
208	(21)  "State" means a state of the United States, the
209	District of Columbia, Puerto Rico, the United States Virgin
210	Islands, or any territory or insular possession subject to the
211	jurisdiction of the United States.
212	(22)  "Time of foreclosure" means the time that title to
213	real property collateral passes to the person acquiring it by
214	virtue of foreclosure under this chapter.
215	52.103  Application.-
216	(1)  Except as otherwise provided in subsection (2), this
217	chapter authorizes the nonjudicial foreclosure of every form of
218	security interest in real property located in this state and
219	related personal property entered into before, on, or after July
220	1, 2010, if the original notice of foreclosure is given after
221	July 1, 2010, and if the debtor has agreed in substance in the
222	security instrument that:
223	(a)  The security interest may be foreclosed pursuant to
224	this chapter; or
225	(b)  The security interest may be foreclosed by nonjudicial
226	process.
227	(2)  This chapter may not be used to foreclose:
228	(a)  A lien created by statute or operation of law, except
229	a lien of an owners' association on property in a common
230	interest community;
231	(b)  A security interest in property in a common interest
232	community if under the law of this state that interest is
233	personal property; or
234	(c)  A security interest in rents or proceeds of real
235	property.
236	(3)  This chapter does not preclude or govern foreclosure
237	or other enforcement of security interests in real property by
238	judicial or other action permitted by any other laws of this
239	state.
240	(a)  A secured creditor may not take action in pursuance of
241	foreclosure under this chapter if a judicial proceeding is
242	pending in this state to foreclose the security interest or to
243	enforce the secured obligation against a person primarily liable
244	for the obligation.
245	(b)  A secured creditor may not commence or pursue
246	foreclosure under this chapter if a judicial proceeding is
247	pending in this state to challenge the existence, validity, or
248	enforceability of the security interest to be foreclosed.
249	(c)  Except as provided in s. 52.208(2), foreclosure under
250	this chapter may proceed even if a judicial proceeding is
251	pending or a judicial order has been obtained for appointment or
252	supervision of a receiver of the collateral, possession of the
253	collateral, enforcement of an assignment of rents or other
254	proceeds of the collateral, or collection or sequestration of
255	rents or other proceeds of the collateral or to enforce the
256	secured obligation against a guarantor.
257	(4)  If a security instrument covers both real property and
258	personal property, the secured creditor may proceed under this
259	chapter as to both the real property and personal property to
260	the extent permitted by chapter 679.
261	52.104  Variation by agreement.-
262	(1)  Except as otherwise provided in subsections (2)-(4),
263	the parties to a security instrument may not vary by agreement
264	the effect of a provision of this chapter.
265	(2)  The time within which a person must respond to a
266	notice sent by a secured creditor may be extended by agreement.
267	(3)  The parties to a security instrument may vary the
268	effect of any provision of this chapter that by its terms
269	permits the parties to do so.
270	(4)  The parties by agreement may determine the standards
271	by which performance of obligations under this chapter is to be
272	measured if those standards are not manifestly unreasonable.
273	(5)  If every debtor under a security instrument is not a
274	residential debtor, an agreement by a guarantor waiving the
275	right to receive notices under this chapter with respect to the
276	foreclosure of the property of a debtor who is not a guarantor
277	is enforceable unless a waiver is unenforceable under other
278	applicable law.
279	52.105  Supplemental principles of law and equity
280	applicable.-Unless displaced by a particular provision of this
281	chapter, the principles of law and equity affecting security
282	interests in real property supplement this chapter.
283	52.106  Notice and knowledge.-For purposes of this section:
284	(1)  The following definitions apply:
285	(a)  "Address" means a physical or an electronic address,
286	or both, as the security instrument requires.
287	(b)  "Address for notice" means:
288	1.  With respect to a notice given by a secured creditor:
289	a.  For a recipient that has given to the secured creditor
290	a security instrument or other document in connection with a
291	security instrument, the address, if any, specified in the
292	security instrument or document.
293	b.  For a recipient not described in sub-subparagraph a.
294	that is identifiable from examination of the public records of
295	the county or counties in which the collateral is located, or,
296	if personal property is being foreclosed together with real
297	property, the Uniform Commercial Code financing statement
298	filings, the address, if any, specified in the recorded or filed
299	document.
300	c.  For a recipient not described in sub-subparagraph a. or
301	sub-subparagraph b. that the secured creditor knows is a tenant,
302	subtenant, or leasehold assignee of all or part of the real
303	property collateral, the most recent address made known to the
304	secured creditor by that person or, if none, the address of the
305	real property collateral, including the designation of any
306	office, apartment, or other unit that the secured creditor knows
307	is possessed by the recipient, with the notice directed to the
308	recipient's name, if known, or otherwise "To Tenant occupying
309	property at" the physical address or description of the real
310	property collateral.
311	d.  For a recipient not described in sub-subparagraphs a.-
312	c., the physical address of the real property collateral.
313	2.  With respect to notices given by persons other than a
314	secured creditor, the most recent address given in a document
315	provided by the recipient to the person giving notice.
316	(c)  "Electronic" means relating to technology having
317	electrical, digital, magnetic, wireless, optical,
318	electromagnetic, or similar capabilities.
319	(d)  "Electronic notice" means an electronic record signed
320	by the person sending the notice.
321	(e)  "Electronic record" means a record created, generated,
322	sent, communicated, received, or stored by electronic means.
323	(f)  "Electronic signature" means an electronic sound,
324	symbol, or process attached to or logically associated with a
325	record and executed or adopted by a person with intent to
326	authenticate the record.
327	(g)  "Recipient" means a person to whom a notice is sent.
328	(h)  "Written notice" means a written record signed by the
329	person giving the notice.
330	(2)  A person knows a fact if:
331	(a)  The person has actual knowledge of the fact;
332	(b)  The person has received a notice or notification of
333	the fact; or
334	(c)  From all the facts and circumstances known to the
335	person at the time in question the person has reason to know the
336	fact.
337	(3)  Notice is sent or given, or a recipient is notified,
338	subject to the limitations of subsection (4):
339	(a)  By hand delivering a written notice to the recipient
340	or to an individual authorized to receive service of civil
341	process under applicable Florida law who is found at the
342	recipient's address for notice;
343	(b)  By depositing written notice, properly addressed to
344	the recipient's address for notice, with cost of delivery paid:
345	1.  With the United States Postal Service, registered or
346	certified mail, return receipt requested;
347	2.  With the United States Postal Service by regular mail;
348	or
349	3.  With a commercially reasonable carrier other than the
350	United States Postal Service; or
351	(c)  Subject to subsection (7), by initiating operations
352	that in the ordinary course will cause the notice to come into
353	existence at the recipient's address for notice in the
354	recipient's information processing system in a form capable of
355	being processed by the recipient.
356	(4)  If the recipient is an individual and the security
357	interest covers the recipient's primary residence, use of the
358	methods of notice specified in subsection (3) is limited as
359	follows:
360	(a)  If the notice is a notice of default pursuant to s.
361	52.202 or a notice of foreclosure pursuant to s. 52.203, both of
362	the methods of giving notice specified in subparagraphs (3)(b)2.
363	and 3. must be used.
364	(b)  If the notice is not a notice of default pursuant to
365	s. 52.202 or a notice of foreclosure pursuant to s. 52.203, a
366	method of giving notice specified in paragraph (3)(a) or
367	paragraph (3)(b) must be used.
368	(5)  If a person giving a notice pursuant to this chapter
369	and the recipient have agreed to limit the methods of giving
370	notice otherwise permitted by subsections (3) and (4), that
371	limitation is enforceable to the extent that it is consistent
372	with subsection (4) and is otherwise permitted by law.
373	(6)  A person may not give an electronic notice unless the
374	recipient uses, designates by agreement, or otherwise has
375	designated or holds out an information processing system or
376	address within that system as a place for the receipt of
377	communications of that kind. An electronic notice is not sent if
378	the sender or its information processing system inhibits the
379	ability of the recipient to print or store the record.
380	(7)  If, at the time of giving a required notice, a person
381	knows that the recipient's address for notice is incorrect or
382	that notices cannot be delivered to the recipient at that
383	address, the person that sent the notice shall make a reasonable
384	effort to determine a correct address for the recipient and send
385	the notice to the address so determined. Compliance with the
386	provisions of chapter 49 satisfies the requirement to make
387	reasonable effort to locate the party entitled to notice.
388	(8)  If, after giving a notice, a person acquires knowledge
389	that the address of the recipient to which the notice was
390	directed is incorrect or that notices cannot be delivered to the
391	recipient at that address, the person that sent the notice shall
392	promptly make a reasonable effort to determine a correct address
393	for the recipient and send another copy of the notice to the
394	address so determined, if any. The first notice, if timely sent
395	and properly directed to the recipient's address for notice,
396	complies with the time requirements of this chapter.
397	(9)  A person may use methods of giving notice in addition
398	to, but not in place of, the methods required by subsections (3)
399	and (4).
400	(10)  A notice is sufficient even if it includes
401	information not required by law or contains minor errors that
402	are not seriously misleading.
403	(11)  Receipt of a notice within the time in which it would
404	have been received if properly sent has the effect of a proper
405	giving of notice.
406	(12)  If the recipient is an individual, a notice is
407	received when it comes to the recipient' s attention or is
408	delivered to and available at the recipient's address for
409	notice. If the recipient is not an individual, a notice is
410	received when it is brought to the attention of the individual
411	conducting the transaction, or in any event when it would have
412	been brought to that individual's attention if the recipient had
413	exercised due diligence. An organization exercises due diligence
414	if it maintains reasonable routines for communicating
415	significant information with the person conducting the
416	transaction and there is reasonable compliance with the
417	routines. Due diligence does not require an individual acting
418	for the organization to communicate information unless such
419	communication is part of the individual's regular duties or
420	unless the individual has reason to know of the transaction and
421	that the transaction would be materially affected by the
422	information.
423	(13)  Subject to subsection (12), a person that has sent a
424	notice may revoke it by a subsequent notice unless the recipient
425	has materially changed its position in reliance on the notice
426	before receiving the revocation.
427	52.107  Transaction creating security interest.-A
428	transaction that is intended to create a security interest does
429	so irrespective of the caption of the documents.
430	52.108  Time of foreclosure.-The time of foreclosure is the
431	time the affidavit required by:
432	(1)  Section 52.312 is recorded, in the case of a
433	foreclosure by auction.
434	(2)  Section 52.405 is recorded, in the case of a
435	foreclosure by negotiated sale.
436	(3)  Section 52.505 is recorded, in the case of a
437	foreclosure by appraisal.
438	Section 2.  Part II of chapter 52, Florida Statutes,
439	consisting of sections 52.201, 52.202, 52.203, 52.204, 52.205,
440	52.206, 52.207, 52.208, and 52.209, is created to read:
441	PART II
442	PROCEDURES BEFORE FORECLOSURE
443	52.201  Right to foreclose.-
444	(1)  A secured creditor has a right to foreclose under this
445	chapter if:
446	(a)  All conditions that, by law and the terms of the
447	security instrument, are prerequisites to foreclosure have been
448	satisfied.
449	(b)  All notices to the debtor required by the security
450	instrument and by this chapter as prerequisites to foreclosure
451	have been given.
452	(c)  All periods for cure available to the debtor by the
453	terms of the security instrument and law as prerequisites to
454	foreclosure have elapsed and no cure has been made.
455	(2)  A foreclosing creditor may pursue foreclosure
456	exclusively by auction, by negotiated sale, or by appraisal, or
457	may simultaneously pursue, together with foreclosure by auction,
458	either foreclosure by negotiated sale or by appraisal, but not
459	both. If the creditor pursues two methods of foreclosure
460	simultaneously, the notice of foreclosure must state both
461	methods.
462	52.202  Notice of default and right to cure.-
463	(1)  Subject to subsection (2) and paragraph (6)(a), a
464	notice of default must be given to each debtor and each interest
465	holder whose interest gives right of possession of the real
466	property collateral, and the cure period provided by this
467	section must expire without cure being made, before the original
468	notice of foreclosure may be given.
469	(2)  Except as provided in the security instrument, notice
470	of default need not be given and no cure period is applicable if
471	the default cannot be cured.
472	(3)  A notice of default must contain:
473	(a)  The facts establishing that a default has occurred.
474	(b)  The amount to be paid or other performance required to
475	cure the default, including the daily rate of accrual for
476	amounts accruing over time, and the time within which cure must
477	be made.
478	(c)  The name, address, and telephone number of an
479	individual who is or represents the secured creditor and who can
480	be contacted for further information concerning the default.
481	(d)  A statement that foreclosure may be initiated if the
482	default is not cured in a timely manner.
483	(4)  Within 30 days after notice of default is given to the
484	last person entitled to such notice, any person may:
485	(a)  Cure the default if the default is curable by the
486	payment of money; or
487	(b)  Commence to cure the default if the default cannot be
488	cured by the payment of money, diligently proceed to cure the
489	default, and complete the cure of the default within 90 days
490	after the notice of default was given.
491	(5)  If no person is proceeding diligently to cure a
492	default that cannot be cured by the payment of money after 30
493	days from the date the notice of default was sent to the last
494	person entitled to such notice, the secured creditor may
495	immediately terminate the period allowed for cure by
496	accelerating payment of the principal amount owing on the
497	secured obligation or giving an original notice of foreclosure.
498	(6)  If none of the real property to be foreclosed is
499	residential real property:
500	(a)  If a default cannot be cured by the payment of money
501	and a notice of default was given by the secured creditor within
502	1 year before the date of the present default on account of a
503	default of the same kind, a notice of default is not required
504	and a right to cure does not exist except as agreed by the
505	parties.
506	(b)  The periods specified in subsection (4) to cure a
507	default may be reduced as the parties agree in the security
508	instrument.
509	(7)  A notice of default may be given notwithstanding that
510	a notice of default has previously been given on account of a
511	different default and is still pending.
512	(8)  The right to cure a default provided in this section
513	does not impair or limit any other right to notice of default or
514	to cure a default provided to any person by the security
515	instrument. The period to cure provided in this section and any
516	period to cure provided in the security instrument run
517	concurrently unless the security instrument provides otherwise.
518	(9)  Unless precluded from doing so by law other than this
519	chapter, a secured creditor shall cooperate with any debtor or
520	interest holder that attempts to cure a default by promptly
521	providing upon request reasonable information concerning the
522	amount or other performance due and expenses necessary for cure.
523	(10)  If a default is cured within a period allowed by this
524	section, or after the expiration of that period but before
525	acceleration of the principal amount owing on the secured
526	obligation or the giving of an original notice of foreclosure,
527	an acceleration by the secured creditor of the principal amount
528	owing on the secured obligation on account of that default is
529	ineffective.
530	(11)  During a period allowed for cure of a default under
531	this section, a secured creditor may enforce any remedy other
532	than foreclosure provided for by the security instrument and
533	enforceable under the laws of this state other than this chapter
534	if enforcement does not unreasonably interfere with the ability
535	of a debtor to cure a default under this section.
536	52.203  Notice of foreclosure; manner of giving.-
537	(1)  If a secured creditor has a right to foreclose under
538	s. 52.201, the secured creditor may commence foreclosure by
539	giving notice of foreclosure. The notice must comply with
540	subsections (2) and (3) and s. 52.204 and is a prerequisite to
541	foreclosure.
542	(2)  A foreclosing creditor shall record a copy of the
543	notice of foreclosure in the public records of each county in
544	which the real property collateral is located. A recorded notice
545	of foreclosure is notice of its existence and contents to any
546	person acquiring an interest in the real property collateral
547	after the notice of foreclosure is recorded. In the absence of
548	recording of the notice of foreclosure, any purported
549	foreclosure under this chapter is void.
550	(3)  Except as otherwise provided in subsection (4), a
551	foreclosing creditor shall give a notice of foreclosure to the
552	following persons no later than 5 days after recording the
553	original notice of foreclosure pursuant to subsection (2) if
554	such persons can be identified as of the time of recording of
555	the notice of foreclosure:
556	(a)  A person that the foreclosing creditor knows to be a
557	debtor.
558	(b)  A person specified by the debtor in the security
559	instrument to receive notice on the debtor's behalf.
560	(c)  A person that is shown by the public records of each
561	county in which any part of the real property collateral is
562	located to be an interest holder in the real property
563	collateral.
564	(d)  If the foreclosing creditor holds and intends to
565	foreclose on a security interest in personal property, a person
566	who is entitled to notice with respect to the disposition of the
567	personal property collateral under chapter 679.
568	(e)  A person who the foreclosing creditor knows is an
569	interest holder in the real property collateral.
570	(f)  A person that has recorded in the public records of a
571	county in which any part of the real property collateral is
572	located a request for notice of foreclosure satisfying the
573	requirements of s. 52.205.
574	(4)  After the time of recording of the notice of
575	foreclosure, if the foreclosing creditor obtains actual
576	knowledge that a person holds an interest in the collateral that
577	is subordinate in priority to the security instrument, the
578	foreclosing creditor must give a notice of foreclosure to that
579	person no later than 5 days after obtaining such knowledge.
580	(5)  A foreclosing creditor may give a special notice of
581	foreclosure to any person described in subsection (3) or
582	subsection (4) to avoid the termination of that person's
583	interest in the collateral by the foreclosure. The special
584	notice shall give the information required by s. 52.204, but
585	state that the recipient's interest in the collateral will not
586	be terminated by the foreclosure.
587	(6)  A foreclosing creditor, within 10 days before or after
588	recording a notice of foreclosure, shall affix a copy of the
589	notice of foreclosure at a conspicuous place on the real
590	property collateral.
591	(7)  An original notice of foreclosure is ineffective if
592	given after the limitation period for foreclosure of a security
593	interest in real property by judicial proceeding has expired.
594	52.204  Notice of foreclosure: content.-
595	(1)  The heading of a notice of foreclosure must be
596	conspicuous and must read as follows:
597	"NOTICE OF FORECLOSURE. YOU ARE HEREBY NOTIFIED THAT YOU
598	MAY LOSE YOUR RIGHTS TO CERTAIN PROPERTY. READ THIS
599	NOTICE IMMEDIATELY AND CAREFULLY."
600	(2)  A notice of foreclosure must contain:
601	(a)  The date of the notice, the name of the owner of the
602	collateral as identified in the security instrument, a legally
603	sufficient description and, at the secured creditor's option,
604	the street address, if any, stated in the security instrument of
605	the real property collateral or portion thereof being
606	foreclosed, and a description of any personal property
607	collateral to be included in the foreclosure.
608	(b)  Information concerning the recording of the security
609	instrument, including the recording date, and the official
610	records book and page number or the official recording number
611	for the security instrument.
612	(c)  A statement that a default exists under the security
613	instrument, and the facts establishing the default.
614	(d)  A statement that the foreclosing creditor is
615	initiating foreclosure.
616	(e)  A statement that the foreclosing creditor has
617	accelerated or, by virtue of the notice, is accelerating the due
618	date of the principal amount owing on the secured obligation or
619	a statement that the foreclosing creditor elects not to
620	accelerate the due date.
621	(f)  A statement that the collateral may be redeemed from
622	the security interest by payment in full or performance of the
623	secured obligation in full before foreclosure and the amount to
624	be paid or other action necessary to redeem, including a per
625	diem amount that will allow calculation of the total balance
626	owed as of future dates and any further amount the foreclosing
627	creditor anticipates expending to protect the collateral.
628	(g)  A statement of the method or methods of foreclosure
629	the foreclosing creditor elects to use and the earliest date on
630	which foreclosure will occur if no redemption is made.
631	(h)  A statement that the foreclosure will terminate the
632	rights in the collateral of the person receiving the notice of
633	foreclosure.
634	(i)  If applicable, an explanation of a debtor's right to
635	avoid a deficiency claim by compliance with s. 52.605.
636	(j)  If the foreclosure is by negotiated sale or by
637	appraisal, an explanation of the right of the debtor and holders
638	of subordinate interests to object to the foreclosure as
639	provided by s. 52.206.
640	(k)  If applicable, a statement that, within 15 days after
641	the date the notice of foreclosure is given, a debtor or an
642	interest holder having a possessory interest in the real
643	property collateral may request a meeting with a representative
644	of the foreclosing creditor to object to the foreclosure as
645	provided by s. 52.206.
646	(l)  The name, address, and telephone number of an
647	individual who is the foreclosing creditor or a representative
648	of the foreclosing creditor and who can be contacted for further
649	information concerning the foreclosure.
650	(m)  A statement that any person receiving a notice of
651	foreclosure may file an action in court objecting to the
652	foreclosure, which action must be filed within 20 days after
653	receipt of the original notice of foreclosure.
654	52.205  Request for notice of foreclosure.-
655	(1)  Any person may record in the public records of any
656	county or counties a request for notice of foreclosure of a
657	security instrument that has been recorded in such county or
658	counties. The request must state:
659	(a)  The date of the security interest, the date of its
660	recording, and the official records book and page, or official
661	recording number of the security instrument's recording.
662	(b)  The names of the parties to the security instrument.
663	(c)  A legally sufficient description of the real property
664	collateral affected by the security instrument.
665	(d)  The name and address of the person requesting notice
666	of foreclosure.
667	(e)  The legal interest, if any, held by the person
668	recording the request for notice.
669	(2)  A person that records a request under subsection (1)
670	prior to the secured party's commencing foreclosure as provided
671	in s. 52.203(1) is entitled to be given notice of foreclosure
672	under s. 52.203(1). Recording a request does not affect the
673	title to the real property collateral and does not constitute
674	constructive notice to any person with an interest in the real
675	property collateral held or claimed by the person requesting
676	notice. A person that records a request for notice under this
677	section may subsequently record an amendment supplementing or
678	correcting information in the request or record a withdrawing of
679	the request.
680	(3)  A foreclosing creditor is liable for a penalty of $500
681	to a person that is not given timely notice of foreclosure if
682	that person has recorded a request for notice of foreclosure
683	meeting the standards of this section. If a recorded request for
684	notice states that the person recording the request has an
685	interest in the real property collateral and the person is not
686	given timely notice of foreclosure, the person's interest in the
687	collateral, if any, is preserved from termination by the
688	foreclosure.
689	52.206  Meeting to object to foreclosure.-
690	(1)  A debtor may request a meeting to object to a
691	foreclosure. The request must be made by a notice received by
692	the foreclosing creditor within 30 days after the notice of
693	foreclosure is given to that debtor. If the foreclosing creditor
694	receives a request for a meeting, the foreclosing creditor or a
695	responsible representative of the foreclosing creditor shall
696	schedule and attend a meeting with the person requesting it at a
697	mutually agreeable time. The representative may be an employee,
698	agent, servicer, or attorney of the foreclosing creditor and
699	must have authority to terminate the foreclosure if the
700	representative determines that there is no legal basis for
701	foreclosure. The meeting may be held in person or by telephone,
702	video conferencing, or other reasonable means, at the election
703	of the foreclosing creditor. If the meeting is held in person,
704	it must be held at a location reasonably convenient to a parcel
705	of the real property collateral unless the person requesting the
706	meeting and the representative mutually agree on a different
707	location. If the foreclosing creditor receives requests from
708	more than one person, the creditor or representative may attempt
709	to arrange a consolidated meeting, and the persons requesting
710	meetings must cooperate reasonably with the foreclosing
711	creditor's effort to do so.
712	(2)  A meeting conducted pursuant to this section is
713	informal and the rules of evidence do not apply. The parties may
714	be represented by legal counsel. The foreclosing creditor or
715	representative must have access to records that provide evidence
716	of the grounds for foreclosure. If the debtor desires to
717	negotiate a forbearance or modification on the underlying
718	obligation, the debtor must provide financial statements and
719	other documents sufficient to permit the foreclosing creditor to
720	determine the existence, if any, for grounds to negotiate
721	alternate terms or obligations. The creditor or representative
722	shall consider the objections to foreclosure stated by the
723	person requesting the meeting. Within 10 days after the meeting,
724	the creditor or representative attending the meeting shall give
725	to each person who requested the meeting a written statement
726	indicating whether the foreclosure will be discontinued or will
727	proceed and the reasons for the determination. The objections to
728	foreclosure stated by the person requesting the meeting and the
729	reasons stated by the creditor or representative do not preclude
730	any person from raising those or other grounds for objecting to
731	or supporting foreclosure in any subsequent judicial proceeding.
732	A statement or representation made by a person at the meeting
733	may not be introduced as evidence in any judicial proceeding.
734	Each party must bear its own expenses in connection with the
735	meeting.
736	(3)  The foreclosing creditor and the representative do not
737	incur any liability for making a determination that is adverse
738	to the person who requested the meeting.
739	52.207  Period of limitation for foreclosure.-The time of
740	foreclosure may not be less than 90 days nor more than 1 year
741	after an original notice of foreclosure is recorded under s.
742	52.203 and not less than 30 days after any subsequent notice of
743	foreclosure. The 1-year period of limitation may be extended by
744	agreement of the foreclosing creditor and all persons to whom
745	notice of foreclosure was required to be given, other than
746	persons excluded from foreclosure by notice issued under s.
747	52.203(5), s. 52.406(1)(b), or s. 52.506(1)(b). The 1-year and
748	30-day periods of limitation are tolled during the period that
749	any court order temporarily enjoining or staying the foreclosure
750	is in effect and during any stay under the United States
751	Bankruptcy Code, 11 U.S.C. ss. 101 et seq.
752	52.208  Judicial supervision of foreclosure.-
753	(1)  Before the time of foreclosure, a secured creditor may
754	commence a proceeding in a court of competent jurisdiction for
755	any violation of this chapter or of other law or principle of
756	equity in the conduct of the foreclosure. The court may issue
757	any order within the authority of the court in a foreclosure of
758	a mortgage by judicial action, including injunction and
759	postponement of the foreclosure.
760	(2)  Any person required to be notified of the foreclosure
761	pursuant to s. 52.203(3) may file an action in the circuit court
762	demanding that the foreclosure proceed through the court
763	process. The complaint must be filed no later than 20 days after
764	receipt of the original notice of foreclosure. The complaint
765	must state a bona fide defense to the foreclosure and must
766	include a certification of the plaintiff under oath that the
767	complaint is not being filed solely for the purpose of delay.
768	Unless waived pursuant to s. 57.082, the complaint must be
769	accompanied by the appropriate filing fee and any other required
770	fees. Unless dismissed by the court, the civil action takes
771	precedence over foreclosure under this chapter and the creditor
772	must cease further action under this chapter. The court may, at
773	any time, examine the pleadings and the parties and shall
774	dismiss the case upon a finding that the case was filed
775	principally for the purpose of delay. If the court dismisses the
776	action, the foreclosure under this chapter shall resume from the
777	point at which it previously stopped, treating the case filing
778	as an abatement of the foreclosure under this chapter.
779	(3)  A debtor who is an owner of homestead residential real
780	property subject to foreclosure under this chapter may object to
781	such foreclosure and request that a judicial foreclosure occur
782	in accordance with chapter 702. The objection must be sent by
783	the debtor to the secured creditor via United States mail within
784	90 days after the notice of foreclosure is given to the debtor.
785	An objection is timely sent if postmarked by the 90th day after
786	the notice of foreclosure is given to the debtor. If the
787	foreclosing creditor receives a timely objection from the
788	debtor, the foreclosing creditor shall discontinue foreclosure
789	under this chapter and must file a judicial foreclosure action
790	in accordance with chapter 702 in order to foreclose upon the
791	homestead residential real property of the debtor.
792	52.209  Redemption.-A person who has the right to redeem
793	collateral from a security interest under principles of law and
794	equity may not redeem after the time of foreclosure. Unless
795	precluded from doing so by law other than this chapter, a
796	foreclosing creditor shall cooperate with any person who
797	attempts to redeem the collateral from the security interest
798	before the time of foreclosure by promptly providing upon
799	request reasonable information concerning the amount due or
800	performance required to redeem.
801	Section 3.  Part III of chapter 52, Florida Statutes,
802	consisting of sections 52.301, 52.302, 52.303, 52.304, 52.305,
803	52.306, 52.307, 52.308, 52.309, 52.310, 52.311, and 52.312, is
804	created to read:
805	PART III
806	FORECLOSURE BY AUCTION
807	52.301  Foreclosure by auction.-A secured creditor may
808	elect to foreclose by auction. A secured creditor that elects to
809	foreclose by auction shall comply with the requirements of this
810	part and parts I, II, and VI.
811	52.302  Evidence of title; other information.-
812	(1)  If a secured creditor elects to foreclose by auction,
813	the foreclosing creditor shall obtain evidence of title and make
814	a copy thereof available upon request to any prospective bidder
815	at the foreclosure. The evidence of title must have an effective
816	date no earlier than the time of recording of the original
817	notice of foreclosure and must be issued no later than 30 days
818	after the time of such recording. Unless the evidence of title
819	is an attorney's opinion, the evidence of title must state that
820	the issuer is willing to provide evidence of title to the real
821	property collateral to a person who acquires title by virtue of
822	the foreclosure, and the exceptions and exclusions from coverage
823	to which the evidence of title issued to that person will be
824	subject.
825	(2)  The foreclosing creditor may, but is not required to,
826	make reports and information concerning the collateral other
827	than evidence of title available to prospective bidders at the
828	foreclosure.
829	(3)  The foreclosing creditor is not liable to any person
830	because of error in any information disclosed to prospective
831	bidders unless the information was prepared by the foreclosing
832	creditor and the foreclosing creditor had actual knowledge of
833	the error at the time the information was disclosed.
834	52.303  Advertisement of sale.-
835	(1)  After giving notice as required by ss. 52.203 and
836	52.204, a foreclosing creditor shall, at the foreclosing
837	creditor's option, advertise foreclosure sale under this part
838	either:
839	(a)  In a manner that complies with the publication
840	requirements provided by s. 45.031; or
841	(b)  By placing an advertisement in a newspaper having
842	general circulation in each county where any part of the real
843	property collateral is located. The advertisement must be
844	published at least once per week for 3 consecutive weeks, with
845	the last publication not less than 7 nor more than 30 days
846	before the advertised date of sale.
847	(2)  No later than 21 days before the advertised date of
848	sale, the foreclosing creditor shall give a copy of the
849	advertisement required by subsection (1) to the persons to whom
850	notice of foreclosure was required to be given pursuant to s.
851	52.203. The advertisement may be sent with the notice of
852	foreclosure or may be sent separately in the manner prescribed
853	for notices under s. 52.106. The foreclosing creditor may, but
854	is not required to, enter the real property collateral and post
855	on it a copy of the advertisement or a sign containing
856	information about the sale.
857	(3)  An advertisement required by subsection (1) must
858	state:
859	(a)  The date, time, and location by street address and, if
860	applicable, by floor and office number, of the foreclosure sale.
861	(b)  That the sale will be made to the highest qualified
862	bidder.
863	(c)  The amount or percentage of the bid that will be
864	required of the successful bidder at the completion of the sale
865	as a deposit, and the form in which the deposit may be made if
866	payment other than by cash or certified check will be accepted.
867	(d)  A legally sufficient description of the real property
868	to be sold, and the street address, if any, or the location if
869	there is no street address, of the real property.
870	(e)  A brief description of any improvements on the real
871	property and any personal property collateral to be sold.
872	(f)  The name, address, and telephone number of an
873	individual who is the foreclosing creditor or a representative
874	of the foreclosing creditor, who can provide information
875	concerning the collateral and the foreclosure if the foreclosing
876	creditor is not an individual.
877	(g)  That a copy of the evidence of title, any available
878	reports concerning the collateral, which may be listed
879	specifically, and additional information are available from the
880	person identified pursuant to paragraph (f).
881	(h)  Whether access to the collateral for the purpose of
882	inspection before foreclosure is available to prospective
883	bidders and, if so, how to obtain access.
884	(4)  An advertisement required by subsection (1) may also
885	state any other information concerning the collateral or the
886	foreclosure that the foreclosing creditor elects to include.
887	52.304  Access to collateral.-If a foreclosing creditor has
888	authority to grant access to the real property collateral, the
889	creditor shall reasonably accommodate a person who contacts the
890	creditor, expresses an interest in bidding at the foreclosure
891	sale, and requests an opportunity to inspect the collateral.
892	52.305  Location and time of sale.-An auction sale under
893	this part must be conducted:
894	(1)  At a date and time permitted for a sale under judicial
895	foreclosure of a security interest in real property in this
896	state.
897	(2)  In a county where some of the real property collateral
898	is located.
899	(3)  At any location where a sale under judicial
900	foreclosure of a security interest in real property may be held
901	in this state.
902	52.306  Foreclosure of two or more parcels.-
903	(1)  Collateral consisting of two or more parcels of real
904	property may be foreclosed by auction separately or in
905	combination. If the security instrument does not specify the
906	manner of sale of two or more parcels, the auction may be
907	conducted:
908	(a)  By separate sale of each of the parcels; or
909	(b)  At the time notice of foreclosure is recorded, if two
910	or more parcels are contiguous, are being used in a unitary
911	manner, are part of a unitary plan of development, or are
912	operated under integrated management:
913	1.  By combining the parcels in a single auction; or
914	2.  By conditionally offering the parcels both in
915	combination and separately, and accepting the higher of the two
916	aggregate bids.
917	(2)  If the entire real property collateral is not made the
918	subject of a single auction, the foreclosing creditor shall
919	discontinue sales of parcels or combinations of parcels when the
920	total amount of bids received is sufficient to pay the secured
921	obligation and the expenses of foreclosure.
922	52.307  Postponement of sale.-
923	(1)  An individual conducting an auction under this part
924	may postpone the auction for any cause the foreclosing creditor
925	considers appropriate. Announcement of the postponement, and the
926	time and location of the rescheduled sale, must be given orally
927	at the place previously scheduled for the sale and within a
928	reasonable time after the scheduled time for commencement of the
929	sale. No other advertisement or notice of the postponed time and
930	place of sale is required. A postponement may not be for a
931	period of more than 30 days. Subsequent postponements of the
932	sale may be made in the same manner.
933	(2)  If an auction cannot be held at the time stated in the
934	notice of sale by reason of stay under the United States
935	Bankruptcy Code, 11 U.S.C. ss. 101 et seq., or a stay order
936	issued by any court of competent jurisdiction, the foreclosing
937	creditor may reschedule the auction to occur at a time when the
938	stay is no longer in effect. The rescheduled sale must be
939	advertised, and a copy of the advertisement must be sent to the
940	persons entitled thereto, as provided by s. 52.302.
941	52.308  Conduct of sale.-
942	(1)  An auction sale under this part must be conducted by a
943	person designated by the foreclosing creditor.
944	(2)  The person conducting an auction, before commencing
945	the auction:
946	(a)  Must make available to prospective purchasers copies
947	of the evidence of title.
948	(b)  May verify that persons intending to bid have money in
949	an amount and form necessary to make the deposit stated in the
950	advertisement, but may not disclose the amount that any bidder
951	is prepared to deposit.
952	(3)  The auction must be conducted, at the foreclosing
953	creditor's option:
954	(a)  By the creditor or the creditor's representative
955	following the procedures for sale prescribed by s. 45.031; or
956	(b)  In the following manner:
957	1.  Any person, including a debtor and the foreclosing
958	creditor, may bid at the auction. The individual conducting the
959	auction may bid on behalf of the foreclosing creditor or any
960	other person by whom he or she is authorized, but may not bid
961	for his or her own account. The foreclosing creditor may bid by
962	credit up to any amount up to the balance owing on the secured
963	obligation, including the expenses of foreclosure.
964	2.  A fixed bid of a person not attending the auction may
965	be submitted by a writing received at least 24 hours before the
966	scheduled time of the auction by the person designated in the
967	advertisement of sale to provide information about the property.
968	The bid must be accompanied by a deposit satisfying the
969	requirements of s. 52.310. The bid must be read aloud by the
970	person conducting the auction before the auction is opened to
971	oral bids.
972	3.  Sale must be made to the person bidding the highest
973	amount who complies with this section.
974	4.  The auction is completed by the announcement of the
975	person conducting the auction that the property is sold.
976	52.309  Deposit by successful bidder.-Immediately after the
977	sale is complete, the successful bidder, if other than the
978	foreclosing creditor, at an auction under this part must pay a
979	deposit to the person conducting the sale. The deposit must be
980	at least 10 percent of the amount of the bid or such lower
981	amount as the advertisement of sale stated would be accepted.
982	The deposit must be paid in cash, by certified check, or in such
983	other form of payment as was stated to be acceptable in the
984	advertisement of sale or is acceptable to the person conducting
985	the sale.
986	52.310  Payment of remainder of bid.-
987	(1)  The successful bidder at an auction under this part
988	shall pay the remainder of the bid to the person conducting the
989	sale within 7 days after notice is given under s. 52.106(8) of
990	the date of the auction.
991	(2)  If payment of the remainder of the bid is not timely
992	made, the foreclosing creditor may cancel the sale and
993	reschedule the auction as provided in s. 52.307(2) or may
994	terminate the foreclosure under s. 52.701. In either event the
995	deposit of the successful bidder may be forfeited and
996	distributed in the same manner as the proceeds of a sale, but no
997	person has any other remedy against the defaulting bidder.
998	52.311  Foreclosure amount; distribution of proceeds.-The
999	highest amount bid at a sale is the foreclosure amount. The
1000	foreclosure must be applied by the foreclosing creditor as
1001	provided in s. 52.601 within 30 days after the time of the
1002	foreclosure. After receiving but before applying the proceeds of
1003	sale, the secured creditor may, but is not required to, invest
1004	them in a reasonable manner.
1005	52.312  Deed to successful bidder; affidavit.-
1006	(1)  Upon payment by the successful bidder of the full
1007	balance of the bid, the foreclosing creditor shall:
1008	(a)  Record and deliver a statutory warranty deed, a bill
1009	of sale with respect to personal property if applicable, and
1010	such other documents as may be necessary to record the deed, all
1011	without warranty of title, conveying the collateral to or as
1012	directed by the successful bidder.
1013	(b)  Execute and record in the public records of each
1014	county in which the security instrument being foreclosed was
1015	recorded an affidavit containing the following:
1016	1.  Identification of the security instrument foreclosed,
1017	including the official records book and page number, or official
1018	document number at which it was recorded, if any.
1019	2.  Identification the debtor.
1020	3.  A sufficient description of the collateral and
1021	identification of the official records book and page number, or
1022	official document number at which the notice of foreclosure was
1023	recorded.
1024	4.  Identification of persons to whom notice of foreclosure
1025	was given and the official records book and page number, or
1026	official document number at which documents reflecting their
1027	interests in the collateral were recorded, if any.
1028	5.  A statement as to which, if any, of the persons
1029	identified pursuant to subparagraph 4. were given special notice
1030	of foreclosure preserving their interests from termination by
1031	the foreclosure.
1032	6.  A statement that the foreclosing creditor has complied
1033	with all provisions of this chapter for a foreclosure by
1034	auction.
1035	7.  Identification of the person acquiring title to the
1036	collateral by virtue of the foreclosure, and a statement that
1037	title has passed to that person.
1038	(2)  When recorded, the deed and bill of sale, if any,
1039	transfer title to the collateral to or as directed by the
1040	successful bidder as provided in s. 52.602.
1041	Section 4.  Part IV of chapter 52, Florida Statutes,
1042	consisting of sections 52.401, 52.402, 52.403, 52.404, 52.405,
1043	and 52.406, is created to read:
1044	PART IV
1045	FORECLOSURE BY NEGOTIATED SALE
1046	52.401  Foreclosure by negotiated sale.-A secured creditor
1047	may elect to foreclose by negotiated sale. A secured creditor
1048	that elects to foreclose by negotiated sale shall comply with
1049	the requirements of this part and parts I, II, and VI.
1050	52.402  Advertisement and contract of sale.-
1051	(1)  The foreclosing creditor may advertise the collateral
1052	for sale to prospective purchasers by whatever methods the
1053	foreclosing creditor considers appropriate and may list the
1054	collateral for sale with brokers. The foreclosing creditor may,
1055	but is not required to, enter the real property collateral and
1056	post on it a sign containing information about the sale.
1057	(2)  The foreclosing creditor may enter into a conditional
1058	contract of sale with a prospective purchaser or, if the
1059	collateral is sold in parcels, with more than one purchaser. The
1060	contract shall state the gross amount, before expenses of sale,
1061	that the purchaser will pay for the collateral. The foreclosing
1062	creditor's obligation to sell under the contract is subject to
1063	the following conditions:
1064	(a)  That no objection to the foreclosure amount is made
1065	under s. 52.404.
1066	(b)  That no redemption of the collateral from the security
1067	interest is made before the time of foreclosure.
1068	52.403  Notice of proposed negotiated sale.-If a
1069	foreclosing creditor enters into a conditional contract of sale
1070	as provided in s. 52.402, the foreclosing creditor shall give
1071	notice of the proposed sale at least 30 days before the date of
1072	the proposed sale to the persons specified in s. 52.203. The
1073	notice of proposed sale must state:
1074	(1)  The date on or after which the foreclosing creditor
1075	proposes to sell the collateral.
1076	(2)  The foreclosure amount, net of all expenses of
1077	foreclosure and sale, that the foreclosing creditor offers to
1078	credit against the secured debt and distribute to other persons
1079	entitled thereto, which amount may be greater or less than the
1080	selling price stated in the contract.
1081	(3)  That if the sale is completed, title to the collateral
1082	will be transferred to the purchaser under the contract as of
1083	the time of foreclosure and the stated foreclosure amount will
1084	be applied as provided in s. 52.601.
1085	(4)  That the person receiving the notice may inspect a
1086	copy of the contract of sale by communicating with an individual
1087	who is or represents the foreclosing creditor and whose name,
1088	address, and telephone number are given in the notice.
1089	(5)  That if a debtor or any other party whose interest in
1090	the collateral is subordinate in priority to the foreclosing
1091	creditor's security interest objects to the sale, the debtor or
1092	interest holder may give the foreclosing creditor a notice so
1093	stating, and if the notice is received by the foreclosing
1094	creditor no later than 7 days before the date of the proposed
1095	sale, the foreclosing creditor must discontinue the foreclosure
1096	by negotiated sale unless the foreclosing creditor elects to
1097	preserve that person's interest from termination by the
1098	foreclosure or discharges the person's interest.
1099	52.404  Completion of sale.-
1100	(1)  A foreclosing creditor may complete the sale in
1101	accordance with the contract of sale, subsection (2), and ss.
1102	52.405 and 52.406 unless the creditor receives a notice
1103	objecting to the proposed foreclosure by negotiated sale 7 or
1104	more days before the proposed date of sale from a person who
1105	holds an interest in the real property collateral that is
1106	subordinate in priority to the foreclosing creditor's security
1107	interest.
1108	(2)  Upon compliance by the purchaser with a contract for
1109	sale under this part, on or after the proposed date of sale, the
1110	foreclosing creditor shall deliver to the purchaser or a nominee
1111	designated by the purchaser a statutory warranty deed, a bill of
1112	sale if applicable, and other documents necessary to consummate
1113	the sale or that the parties agreed the foreclosing creditor
1114	would supply. The foreclosing creditor shall also execute an
1115	affidavit containing the following:
1116	(a)  Identification of the security instrument foreclosed,
1117	including the official records book and page number or official
1118	document number at which it was recorded, if any.
1119	(b)  Identification of the debtor.
1120	(c)  A sufficient description of the collateral and
1121	identification of the official records book and page number, or
1122	official document number at which the notice of foreclosure was
1123	recorded.
1124	(d)  Identification of persons to whom notice of
1125	foreclosure was given and the official records book and page
1126	number, or official document number at which documents
1127	reflecting their interests in the collateral are recorded, if
1128	any.
1129	(e)  A statement as to which, if any, of the persons
1130	identified pursuant to paragraph (d) were given notice under s.
1131	52.203(5) or s. 52.406(1)(a) preserving their interests from
1132	termination by the foreclosure.
1133	(f)  A statement that the foreclosing creditor has complied
1134	with all provisions of this chapter for a foreclosure by
1135	negotiated sale.
1136	(g)  Identification of the person acquiring title to the
1137	collateral by virtue of the foreclosure, and a statement that
1138	title has passed to that person.
1139	52.405  Recording of affidavit and deed; application of
1140	foreclosure amount.-On or after the date of delivery of the
1141	deed, the affidavit, deed, and bill of sale, if any, required
1142	under s. 52.404 must be recorded in public records of the county
1143	or counties where the collateral is located. When the affidavit,
1144	deed, and bill of sale, if any, are recorded, the deed and bill
1145	of sale transfer title to the collateral to the contract
1146	purchaser or a nominee designated by the contract purchaser as
1147	provided in s. 52.602. The foreclosure amount stated in the
1148	notice of proposed negotiated sale pursuant to s. 52.403(2) must
1149	be applied as provided in s. 52.601 within 30 days after the
1150	time of foreclosure.
1151	52.406  Notice of objection to sale.-
1152	(1)  If, 7 or more days before the proposed date of sale
1153	under this part, a foreclosing creditor receives notice of
1154	objection to the sale from any person who holds an interest in
1155	the real property collateral subordinate in priority to the
1156	foreclosing creditor's security interest, the foreclosing
1157	creditor must:
1158	(a)  Discontinue the foreclosure pursuant to s. 52.701, in
1159	which case the notice of objection has no further effect;
1160	(b)  Give notice, before the time of foreclosure, to the
1161	person who made the objection that the person's interest in the
1162	collateral will be preserved from termination by the
1163	foreclosure. If the foreclosing creditor gives such notice:
1164	1.  The objection of the person to whom such notice is
1165	given may be disregarded by the foreclosing creditor;
1166	2.  The foreclosure by negotiated sale may be completed;
1167	3.  The affidavit recorded under s. 52.405 must identify
1168	that interest in the collateral of the person objecting as not
1169	being terminated by the foreclosure; and
1170	4.  That person is entitled to none of the foreclosure
1171	amount; or
1172	(c)  If the interest of the person who made the objection
1173	is capable of being discharged for a liquidated sum of money,
1174	tender that sum, or a lesser sum acceptable to the person whose
1175	interest is being discharged, to the person and thereby
1176	discharge the interest.
1177	(2)  If the foreclosing creditor makes a tender as provided
1178	in paragraph (1)(c) and keeps the tender in effect, the person
1179	to whom the tender is made must provide the foreclosing creditor
1180	with a suitable document in recordable form evidencing that the
1181	person's interest has been discharged.
1182	(3)  After expiration of the time for objection specified
1183	in s. 52.404(1), a person to whom notice of foreclosure under s.
1184	52.203 and notice of proposed sale under s. 52.403 were sent may
1185	not assert that the foreclosure amount was inadequate.
1186	Section 5.  Part V of chapter 52, Florida Statutes,
1187	consisting of sections 52.501, 52.502, 52.503, 52.504, 52.505,
1188	and 52.506, is created to read:
1189	PART V
1190	FORECLOSURE BY APPRAISAL
1191	52.501  Foreclosure by appraisal.-A secured creditor may
1192	elect to foreclose by appraisal. A secured creditor that elects
1193	to foreclose by appraisal shall comply with the requirements of
1194	this part and parts I, II, and VI.
1195	52.502  Appraisal.-
1196	(1)  The foreclosing creditor shall obtain a written
1197	appraisal of the collateral. The debtor and other persons in
1198	possession of the real property collateral must provide
1199	reasonable access to the real property to the appraiser. The
1200	appraisal report shall state the appraiser's conclusion as to
1201	the fair market value of the collateral as of a date not more
1202	than 60 days before the date of foreclosure stated in the notice
1203	of foreclosure.
1204	(2)  The appraisal must be made by an independent appraiser
1205	certified by the Appraisal Institute who is not an employee or
1206	affiliate of the foreclosing creditor.
1207	52.503  Notice of appraisal.-The foreclosing creditor shall
1208	give notice of the appraisal at least 30 days before the
1209	proposed date of the foreclosure to the persons specified in s.
1210	52.203. The notice of appraisal shall be accompanied by a copy
1211	of the appraisal report and shall state:
1212	(1)  The date on or after which the foreclosing creditor
1213	proposes to foreclose by appraisal.
1214	(2)  The foreclosure amount, net of all expenses of
1215	foreclosure, that the foreclosing creditor offers to credit
1216	against the secured obligation and to distribute to other
1217	persons entitled thereto, which amount may be greater or less
1218	than the appraised value of the collateral.
1219	(3)  That if the foreclosure by appraisal is completed,
1220	title to the collateral will vest in the foreclosing creditor or
1221	its nominee as of the time of foreclosure, and that the stated
1222	foreclosure amount will be applied as provided in s. 52.601.
1223	(4)  That the person receiving the notice may obtain
1224	further information concerning the foreclosure and the appraisal
1225	by communicating with an individual who is or represents the
1226	foreclosing creditor and whose name, address, and telephone
1227	number are given in the notice.
1228	(5)  That if a debtor or interest holder whose interest in
1229	the collateral is subordinate in priority to the foreclosing
1230	creditor's security interest objects to the foreclosure by
1231	appraisal, the debtor or interest holder may give the
1232	foreclosing creditor a notice so stating, and if the notice is
1233	received by the foreclosing creditor no later than 7 days before
1234	the date of the proposed sale, the foreclosing creditor must
1235	discontinue the foreclosure by appraisal unless the foreclosing
1236	creditor elects to preserve that person's interest from
1237	termination by the foreclosure or discharges the person's
1238	interest.
1239	52.504  Completion of foreclosure by appraisal.-
1240	(1)  A foreclosing creditor may complete the foreclosure as
1241	provided in subsection (2) and ss. 52.505 and 52.506 unless the
1242	creditor receives a notice objecting to the proposed foreclosure
1243	by negotiated sale 7 or more days before the proposed date of
1244	sale from a person who holds an interest in the real property
1245	collateral that is subordinate in priority to the foreclosing
1246	creditor's security interest.
1247	(2)  On or after the proposed date of sale, the foreclosing
1248	creditor shall also execute an affidavit containing the
1249	following:
1250	(a)  Identification of the security instrument foreclosed,
1251	including the official records book and page number, or official
1252	document number at which it was recorded, if any.
1253	(b)  Identification of the debtor.
1254	(c)  A sufficient description of the collateral and
1255	identification of the official records book and page number, or
1256	official document number at which the notice of foreclosure was
1257	recorded.
1258	(d)  Identification of persons to whom notice of
1259	foreclosure was given and the official records book and page
1260	number, or official document number at which documents
1261	reflecting their interests in the collateral are recorded, if
1262	any.
1263	(e)  A statement as to which, if any, of the persons
1264	identified pursuant to paragraph (d) were given notice under s.
1265	52.203(5) or s. 52.506(1)(a) preserving their interests from
1266	termination by the foreclosure.
1267	(f)  A statement that the foreclosing creditor has complied
1268	with all provisions of this chapter for a foreclosure by
1269	appraisal.
1270	(g)  Identification of the person acquiring title to the
1271	collateral by virtue of the foreclosure, and a statement that
1272	title has passed to that person.
1273	52.505  Recording of affidavit; application of foreclosure
1274	amount.-On or after the proposed date of foreclosure, the
1275	affidavit required by s. 52.504 must be recorded in the public
1276	records of the county or counties in which the collateral is
1277	located. When recorded, the affidavit transfers title to the
1278	collateral to the foreclosing creditor or its nominee as
1279	provided in s. 52.602. The foreclosure amount stated in the
1280	notice of appraisal pursuant to s. 52.503(2) must be applied as
1281	provided in s. 52.601 within 30 days after the time of
1282	foreclosure.
1283	52.506  Notice of objection to foreclosure.-
1284	(1)  If, 7 or more days before the proposed date of
1285	foreclosure under this part, a foreclosing creditor receives
1286	notice of objection to the foreclosure from any person who holds
1287	an interest in the real property collateral subordinate in
1288	priority to the foreclosing creditor's security interest, the
1289	foreclosing creditor must:
1290	(a)  Discontinue the foreclosure pursuant to s. 52.701, in
1291	which case the notice of objection has no further effect;
1292	(b)  Give notice, before the time of foreclosure, to the
1293	person who made the objection that the person's interest in the
1294	collateral will be preserved from termination by the
1295	foreclosure. If the foreclosing creditor gives such notice:
1296	1.  The objection of the person to whom such notice is
1297	given may be disregarded by the foreclosing creditor;
1298	2.  The foreclosure by appraisal maybe completed;
1299	3.  The affidavit recorded under s. 52.505 must identify
1300	that interest in the collateral of the person objecting as not
1301	being terminated by the foreclosure; and
1302	4.  That person is entitled to none of the foreclosure
1303	amount; or
1304	(c)  If the interest of the person who made the objection
1305	is capable of being discharged for a liquidated sum of money,
1306	tender that sum to the person and thereby discharge the
1307	interest.
1308	(2)  If the foreclosing creditor makes a tender as provided
1309	in subsection (1)(c) and keeps the tender in effect, the person
1310	to whom the tender is made must provide the foreclosing creditor
1311	with a suitable document in recordable form evidencing that the
1312	person's interest has been discharged.
1313	(3)  After expiration of the time for objection specified
1314	in s. 52.504(1), a person to whom notice of foreclosure under s.
1315	52.203 and notice of appraisal under s. 52.503 were sent may not
1316	assert that the foreclosure amount was inadequate.
1317	Section 6.  Part VI of chapter 52, Florida Statutes,
1318	consisting of sections 52.601, 52.602, 52.603, 52.604, 52.605,
1319	52.606, and 52.607, is created to read:
1320	PART VI
1321	RIGHTS AFTER FORECLOSURE
1322	52.601  Application of proceeds of foreclosure.-
1323	(1)  The foreclosing creditor shall apply the proceeds of
1324	foreclosure and any investment earnings thereon in the following
1325	order:
1326	(a)  To pay or reimburse the expenses of foreclosure in the
1327	case of a foreclosure by auction.
1328	(b)  To pay the obligation secured by the foreclosed
1329	security instrument.
1330	(c)  To pay, in the order of their priority, the amounts of
1331	all liens and other interests of record terminated by the
1332	foreclosure.
1333	(d)  To the interest holder who owned the collateral at the
1334	time of foreclosure.
1335	(2)  If the foreclosing creditor, in applying the proceeds
1336	of the sale, acts in good faith and without actual knowledge of
1337	the invalidity or lack of priority of the claim of a person to
1338	whom distribution is made, the foreclosing creditor is not
1339	liable for an erroneous distribution. The foreclosing creditor
1340	may maintain an action in the nature of interpleader, in a court
1341	of competent jurisdiction sitting in a county in which some part
1342	of the real estate collateral is located, for an order directing
1343	the order of distribution of the proceeds of the sale.
1344	52.602  Title transferred by foreclosure.-A foreclosure
1345	under this chapter transfers the debtor's title to the
1346	collateral to the successful bidder under part III, the contract
1347	purchaser under part IV, or the foreclosing creditor under part
1348	V, subject only to interests in the collateral having priority
1349	over the security interest foreclosed and the interests of
1350	persons entitled to notice under s. 52.202(3) who were not given
1351	notice of the foreclosure or whose interests were preserved from
1352	foreclosure by notice issued under s. 52.203(5), s.
1353	52.406(1)(b), or s. 52.506(1)(b). The interests of all of other
1354	persons in the collateral are terminated.
1355	52.603  Action for damages or to set aside foreclosure.-
1356	(1)  Subject to subsection (3), after the time of
1357	foreclosure an aggrieved person may commence a proceeding in a
1358	court of competent jurisdiction seeking the following relief:
1359	(a)  Damages against a foreclosing creditor for any
1360	violation of this chapter or an applicable law or principle of
1361	equity in the conduct of the foreclosure; or
1362	(b)  That the foreclosure be set aside to correct a
1363	violation of this chapter or to satisfy an applicable law or
1364	principle of equity.
1365	(2)  Recording of the deed and affidavit pursuant to s.
1366	52.312, the deed and affidavit pursuant to s. 52.405, or the
1367	affidavit pursuant to s. 52.505 conclusively establishes
1368	compliance with all applicable notice and procedural
1369	requirements of this chapter in favor of good faith purchasers
1370	for value of the collateral. If the title derived from
1371	foreclosure is not held by a good faith purchaser for value, a
1372	person attacking the foreclosure on grounds of noncompliance
1373	with the notice or procedural requirements of this chapter has
1374	the burden of production and persuasion.
1375	(3)  An action may not be commenced:
1376	(a)  For damages for violation of this chapter, more than 3
1377	years after the time of foreclosure; or
1378	(b)  For an order to set aside a foreclosure conducted
1379	under this chapter, more than 1 year after the time of
1380	foreclosure.
1381	52.604  Possession after foreclosure.-A person that
1382	acquires an interest in real property by foreclosure under this
1383	chapter may obtain a writ of possession from the clerk of the
1384	court of the county in which any part of the collateral is
1385	located, or commence an action for ejectment under chapter 66 or
1386	for unlawful detainer under chapter 82 to gain possession of the
1387	real property against any person whose interest in the real
1388	property was terminated by the foreclosure.
1389	52.605  Judgment for deficiency.-
1390	(1)  Except as provided in subsection (2), after the time
1391	of foreclosure, the foreclosing creditor and any other person
1392	whose security interest in the collateral was terminated by a
1393	foreclosure under this chapter is entitled to pursue in court a
1394	money judgment against any person liable for a deficiency.
1395	(2)  A debtor is not liable to a foreclosing creditor for a
1396	deficiency after a foreclosure under this chapter unless the
1397	debtor is found by the court not to have acted in good faith.
1398	(3)  For purposes of this section, the term "acted in good
1399	faith" means the debtor:
1400	(a)  Peaceably vacated the real estate collateral and
1401	relinquished any personal property collateral within 10 days
1402	after the time of foreclosure and the giving of a notice
1403	demanding possession by the person entitled to possession by
1404	virtue of the foreclosure.
1405	(b)  Did not commit significant affirmative waste upon the
1406	collateral and leave such waste uncured at the time possession
1407	was relinquished to the person entitled to possession by virtue
1408	of the foreclosure.
1409	(c)  Did not significantly contaminate the collateral with
1410	hazardous materials and leave the contamination uncured at the
1411	time possession was relinquished to the person entitled to
1412	possession by virtue of the foreclosure.
1413	(d)  Did not commit fraud against the foreclosing creditor.
1414	(e)  Did not engage in criminal activity on the secured
1415	real estate collateral that significantly reduced its value at
1416	the time possession was relinquished to the person entitled to
1417	possession by virtue of the foreclosure.
1418	(f)  Did not permit significant uncured damage to be done
1419	to the collateral by other persons or natural causes as a result
1420	of the debtor's failure to take reasonable precautions against
1421	the damage.
1422	(g)  Provided reasonable access to the collateral for
1423	inspection by the foreclosing creditor and prospective
1424	purchasers after the initial notice of foreclosure was sent.
1425	(4)  The burden of proof as to the absence of good faith on
1426	the part of a debtor is on the person seeking a deficiency
1427	judgment against the debtor. The absence of good faith by one
1428	debtor does not make any other debtor liable for a deficiency.
1429	(5)  If liability of a debtor for a deficiency is barred by
1430	paragraph (2), liability of a guarantor of the debtor's
1431	obligation is also barred.
1432	(6)  This section does not prohibit recovery of a
1433	deficiency by a person other than the foreclosing creditor.
1434	52.606  Determining amount of deficiency.-
1435	(1)  Subject to subsection (2), the deficiency to which a
1436	foreclosing creditor is entitled after a foreclosure under this
1437	chapter is the balance remaining, if any, after subtracting the
1438	foreclosure amount as determined under s. 52.311, s. 52.403, or
1439	s. 52.503, as applicable, from the balance owing on the secured
1440	obligation, including principal, interest, legally recoverable
1441	fees and charges and, in the case of a foreclosure by auction,
1442	the expenses of foreclosure.
1443	(2)  In an action for a deficiency brought by the
1444	foreclosing creditor following a foreclosure by auction, a
1445	person against whom the action is filed may petition a court of
1446	competent jurisdiction for a determination of the fair market
1447	value of the collateral at the time of foreclosure. After a
1448	hearing at which all interested parties may present evidence of
1449	fair market value, the court shall determine the fair market
1450	value of the collateral as of the time of foreclosure. The
1451	determination must be made by the court without a jury. If the
1452	court determines that 90 percent of the fair market value of the
1453	collateral was greater than the bid accepted at the foreclosure
1454	sale, 90 percent of the fair market value must be substituted
1455	for the foreclosure amount in making the calculations required
1456	by subsection (1) with respect to all parties against whom a
1457	judgment for a deficiency is entered.
1458	52.607  Effect of good faith by debtor.-If a debtor acted
1459	in good faith in the foreclosure as provided in s. 52.605(3),
1460	the debtor shall not be considered to have been in default under
1461	the note or security instrument and the foreclosing creditor
1462	shall use its best efforts thereafter to report to credit
1463	bureaus the fact that the debtor, having acted in good faith, is
1464	deemed not to be in default under Florida Law. This section does
1465	not invalidate any foreclosure pursuant to this chapter or any
1466	judgment in a case related to this chapter. This section does
1467	not affect the title or insurability of title to real property
1468	or personal property.
1469	Section 7.  Part VII of chapter 52, Florida Statutes,
1470	consisting of section 52.701, is created to read:
1471	PART VII
1472	DISCONTINUATION OF FORECLOSURE
1473	52.701  Discontinuation of foreclosure.-
1474	(1)  A foreclosing creditor may elect to discontinue
1475	foreclosure at any time before:
1476	(a)  The completion of the auction in the case of a
1477	foreclosure by auction; or
1478	(b)  The time of foreclosure, in the case of a foreclosure
1479	by negotiated sale or by appraisal.
1480	(2)  To discontinue foreclosure, the foreclosing creditor
1481	shall give notice to the persons to whom notice of foreclosure
1482	was required to be given under s. 52.203(2), advising them that
1483	the foreclosure has been discontinued and whether the
1484	foreclosing creditor will:
1485	(a)  Pursue another foreclosure by the same method;
1486	(b)  Continue to foreclose by another method under this
1487	chapter pursuant to a notice of foreclosure previously given;
1488	(c)  Commence foreclosure by a different method authorized
1489	by this chapter pursuant to a new notice of foreclosure;
1490	(d)  Commence foreclose by judicial proceeding, provided no
1491	deficiency judgment may be obtained against any debtor receiving
1492	notice of a foreclosing creditor's notice of foreclosure
1493	pursuant to this chapter; or
1494	(e)  Abandon foreclosure.
1495	(3)  If a notice sent by a foreclosing creditor under this
1496	section includes all elements required for a notice of
1497	foreclosure under ss. 52.203 and 52.204, no additional notice of
1498	foreclosure is necessary to pursue a further foreclosure under
1499	this chapter.
1500	Section 8.  Part VIII of chapter 52, Florida Statutes,
1501	consisting of sections 52.801 and 52.802, is created to read:
1502	PART VIII
1503	MISCELLANEOUS
1504	52.801  Uniformity of application and construction.-In
1505	applying and construing this chapter, consideration must be
1506	given to the need to promote uniformity of the law with respect
1507	to its subject matter among states that enact its provisions.
1508	52.802  Relation to Electronic Signatures in Global and
1509	National Commerce Act.-This chapter modifies, limits, and
1510	supersedes the federal Electronic Signatures in Global and
1511	National Commerce Act, 15 U.S.C. ss. 7001 et seq., except that
1512	nothing in this chapter modifies, limits, or supersedes 15
1513	U.S.C. s. 7001(c) or authorizes electronic delivery of any of
1514	the notices described in 15 U.S.C. s. 7003(b).
1515	Section 9.  This act shall take effect July 1, 2010.

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