HB 213

1	A bill to be entitled
2	An act relating to judicial proceedings; providing a
3	short title; specifying public policy concerning
4	alternatives to mortgage foreclosure; amending s.
5	48.23, F.S.; providing that if the holder of an
6	unrecorded interest or lien does not intervene in
7	certain proceedings concerning property subject to a
8	lis pendens before the occurrence of judicial vesting
9	pursuant to s. 702.068, F.S., of the property
10	described in the notice, the property shall be forever
11	discharged from such unrecorded interests and liens;
12	amending s. 201.02, F.S.; deleting an obsolete
13	provision; providing the documentary stamp tax for a
14	final judgment of foreclosure vesting title in a
15	lender under a specified provision for foreclosure
16	without public sale; amending s. 701.04, F.S.;
17	revising the time period in which an estoppel
18	statement must be provided; revising the allowable
19	methods of delivery and contents of an estoppel
20	statement; prohibiting a fee for an estoppel statement
21	in certain circumstances; providing a fee for failure
22	to deliver certain documents within a specified
23	period; providing a limit on such fees; providing that
24	specified persons may rely on an estoppel statement;
25	requiring a specified certification if the person or
26	party executing a satisfaction is not shown as the
27	owner of the mortgage in the official records;
28	requiring specified requests for an estoppel statement
29	to include a copy of instruments showing an ownership
30	interest in the property; revising requirements for a
31	person required to acknowledge satisfaction of the
32	mortgage, lien, or judgment; providing for actions to
33	compel compliance; providing for attorney fees;
34	creating s. 701.045, F.S.; requiring preparation and
35	recording of an instrument acknowledging satisfaction
36	of the lien or judgment upon full payment; requiring a
37	copy of the recorded satisfaction provided to the
38	person making the full payment within a specified
39	period; providing for civil actions for compliance;
40	providing for attorney fees; providing for
41	responsibility for return of satisfaction when an
42	execution has been issued and a judgment has
43	subsequently been fully paid; providing for compliance
44	with specified provisions relating to amendment of a
45	judgment lien file; creating s. 702.015, F.S.;
46	providing requirements for a complaint which seeks to
47	foreclose a lien on real property; providing
48	requirements for a complaint that includes a count to
49	enforce a lost, destroyed, or stolen instrument;
50	amending s. 702.035, F.S.; requiring the foreclosing
51	party in a mortgage foreclosure action involving
52	specified occupied dwellings to provide notice to
53	certain persons; specifying the contents of such
54	notice; providing for notice to tenants of such
55	buildings in foreclosure; specifying the contents of
56	such notice; creating s. 702.036, F.S.; providing for
57	finality of mortgage foreclosure judgments; requiring
58	certain actions to set aside, invalidate, or challenge
59	the validity of a final judgment of foreclosure of a
60	mortgage or to establish or reestablish a lien or
61	encumbrance on the property in abrogation of the final
62	judgment of foreclosure of a mortgage to be treated as
63	actions for monetary damages only in certain
64	circumstances; providing that certain persons be
65	considered persons affiliated with the foreclosing
66	lender for specified purposes; prohibiting claims by
67	persons claiming to have actual promissory notes
68	following foreclosure of a mortgage based upon the
69	enforcement of a lost, destroyed, or stolen note;
70	amending s. 702.04, F.S.; revising procedural
71	provisions for foreclosure of lands in different
72	counties; amending s. 702.06, F.S.; deleting
73	references to actions at common law for deficiencies
74	and original mortgagees; providing requirements for
75	deficiency decrees in foreclosures of certain owner-
76	occupied dwelling units; providing applicability;
77	creating s. 702.062, F.S.; providing for extensions of
78	time for a party to respond to an initial complaint in
79	certain foreclosure proceedings; providing for notice
80	when all parties have been served personally and no
81	party defendant has filed an answer or other response
82	denying, contesting, or asserting defenses to the
83	plaintiff's entitlement to the foreclosure in certain
84	circumstances; providing for entry of defaults against
85	nonresponding parties; providing for requests for case
86	management conferences; providing for extensions or
87	stays in certain circumstances; amending s. 702.065,
88	F.S.; revising requirements for considering a mortgage
89	foreclosure proceeding uncontested; providing
90	requirements for determination of reasonable attorney
91	fees for foreclosures of certain residential
92	properties; deleting provisions relating to defaults
93	in uncontested mortgage foreclosure proceedings and
94	liquidated damages; creating s. 702.068, F.S.;
95	providing for an election by a foreclosing lender to
96	proceed without public sale in certain circumstances;
97	providing for notice of such an election; specifying
98	the contents of such notice; providing for a demand
99	for a public sale by a party; providing for
100	disposition of proceeds of a public sale; providing
101	for entry of final judgment; providing for redemption
102	of property in certain circumstances; providing for
103	deeming a debt satisfied in certain circumstances;
104	allowing for pursuit of a deficiency if a party
105	defendant elects to proceed without a public sale;
106	amending s. 702.10, F.S.; revising requirements for
107	proceedings for requests for a hearing to show cause
108	after a complaint in a foreclosure proceeding has been
109	filed which is verified in the form of an affidavit
110	sufficient to support a motion for summary judgment;
111	providing for a summons; providing for waiver of the
112	right to be heard at a hearing to show cause in
113	certain circumstances; revising terminology to allow
114	for cases in which there are multiple defendants;
115	providing for a rebuttable presumption that certain
116	properties are homestead properties; providing for
117	applicability of other procedures; creating s. 702.11,
118	F.S.; providing requirements for reasonable means of
119	providing adequate protection under s. 673.3091, F.S.,
120	in mortgage foreclosures of certain residential
121	properties; providing for liability of persons who
122	wrongly claim to be holders of or entitled to enforce
123	a lost, stolen, or destroyed note and caused the
124	mortgage secured thereby to be foreclosed in certain
125	circumstances; creating s. 702.12, F.S.; providing for
126	attorney fees as sanctions for raising unsupported
127	claims or defenses; providing exceptions; providing
128	for damages for delay of litigation; specifying that
129	the act does not apply to foreclosures of timeshare
130	interests under specified provisions; providing a
131	directive to the Division of Statutory Revision;
132	providing applicability; providing an effective date.
133
134	Be It Enacted by the Legislature of the State of Florida:
135
136	Section 1.  This act may be cited as the "Florida Fair
137	Foreclosure Act."
138	Section 2.  The public policy in this state is to encourage
139	borrowers and lenders to work out alternatives to mortgage
140	foreclosure before filing suit and to explore possible
141	settlements in mediation. Once suit has been filed, the public
142	interest is served by maintaining the strong tradition of
143	judicial due process in mortgage foreclosure cases while moving
144	mortgage foreclosure cases to final resolution expeditiously in
145	order to get real property back into the stream of commerce, but
146	to do so consistent with due process and fundamental fairness
147	and without impairing the ability of the courts to manage their
148	dockets and schedules. This act is an effort to provide
149	additional tools to the courts to assist in achieving such a
150	balance.
151	Section 3.  Paragraph (d) of subsection (1) of section
152	48.23, Florida Statutes, is amended to read:
153	48.23  Lis pendens.-
154	(1)
155	(d)  Except for the interest of persons in possession or
156	easements of use, the recording of such notice of lis pendens,
157	provided that during the pendency of the proceeding it has not
158	expired pursuant to subsection (2) or been withdrawn or
159	discharged, constitutes a bar to the enforcement against the
160	property described in the notice of all interests and liens,
161	including, but not limited to, federal tax liens and levies,
162	unrecorded at the time of recording the notice unless the holder
163	of any such unrecorded interest or lien intervenes in such
164	proceedings within 30 days after the recording of the notice. If
165	the holder of any such unrecorded interest or lien does not
166	intervene in the proceedings and if such proceedings are
167	prosecuted to a public judicial sale or judicial vesting
168	pursuant to s. 702.068 of the property described in the notice,
169	the property shall be forever discharged from all such
170	unrecorded interests and liens. If the notice of lis pendens
171	expires or is withdrawn or discharged, the expiration,
172	withdrawal, or discharge of the notice does not affect the
173	validity of any unrecorded interest or lien.
174	Section 4.  Subsections (1) and (9) of section 201.02,
175	Florida Statutes, are amended to read:
176	201.02  Tax on deeds and other instruments relating to real
177	property or interests in real property.-
178	(1)(a)  On deeds, instruments, or writings whereby any
179	lands, tenements, or other real property, or any interest
180	therein, shall be granted, assigned, transferred, or otherwise
181	conveyed to, or vested in, the purchaser or any other person by
182	his or her direction, on each $100 of the consideration therefor
183	the tax shall be 70 cents. When the full amount of the
184	consideration for the execution, assignment, transfer, or
185	conveyance is not shown in the face of such deed, instrument,
186	document, or writing, the tax shall be at the rate of 70 cents
187	for each $100 or fractional part thereof of the consideration
188	therefor. For purposes of this section, consideration includes,
189	but is not limited to, the money paid or agreed to be paid; the
190	discharge of an obligation; and the amount of any mortgage,
191	purchase money mortgage lien, or other encumbrance, whether or
192	not the underlying indebtedness is assumed. If the consideration
193	paid or given in exchange for real property or any interest
194	therein includes property other than money, it is presumed that
195	the consideration is equal to the fair market value of the real
196	property or interest therein.
197	(b)1.  For purposes of this paragraph, the term:
198	a.  "Conduit entity" means a legal entity to which real
199	property is conveyed without full consideration by a grantor who
200	owns a direct or indirect interest in the entity, or a successor
201	entity.
202	b.  "Full consideration" means the consideration that would
203	be paid in an arm's length transaction between unrelated
204	parties.
205	2.  When real property is conveyed to a conduit entity and
206	all or a portion of the grantor's direct or indirect ownership
207	interest in the conduit entity is subsequently transferred for
208	consideration within 3 years after of such conveyance, tax is
209	imposed on each such transfer of an interest in the conduit
210	entity for consideration at the rate of 70 cents for each $100
211	or fraction thereof of the consideration paid or given in
212	exchange for the ownership interest in the conduit entity.
213	3.  When an ownership interest is transferred in a conduit
214	entity that owns assets other than the real property conveyed to
215	the conduit entity, the tax shall be prorated based on the
216	percentage the value of such real property represents of the
217	total value of all assets owned by the conduit entity.
218	4.  A gift of an ownership interest in a conduit entity is
219	not subject to tax to the extent there is no consideration. The
220	transfer of shares or similar equity interests in a conduit
221	entity which are dealt in or traded on public, regulated
222	security exchanges or markets is not subject to tax under this
223	paragraph.
224	5.  The transfer for purposes of estate planning by a
225	natural person of an interest in a conduit entity to an
226	irrevocable grantor trust as described in subpart E of part I of
227	subchapter J of chapter 1 of subtitle A of the United States
228	Internal Revenue Code is not subject to tax under this
229	paragraph.
230	6.  The purpose of this paragraph is to impose the
231	documentary stamp tax on the transfer for consideration of a
232	beneficial interest in real property. The provisions of this
233	paragraph are to be construed liberally to effectuate this
234	purpose.
235	(c)  Conversion or merger of a trust that is not a legal
236	entity that owns real property in this state into a legal entity
237	shall be treated as a conveyance of the real property for the
238	purposes of this section.
239	(d)  Taxes imposed by this subsection shall be paid
240	pursuant to s. 201.133 when no document is recorded. If a
241	document is recorded, taxes imposed by the paragraph shall be
242	paid as required for all other taxable documents that are
243	recorded.
244	(9)  A certificate of title filed issued by the clerk of
245	court under s. 45.031(6)(5) in a public judicial sale of real
246	property under an order or final judgment issued pursuant to a
247	foreclosure proceeding is subject to the tax imposed by
248	subsection (1). However, the amount of the tax shall be computed
249	based solely on the amount of the highest and best bid received
250	for the property at the foreclosure sale. A final judgment of
251	foreclosure vesting title in a lender under s. 702.068 is
252	subject to the tax imposed by subsection (1) based upon a sale
253	price of $100. This subsection is intended to clarify existing
254	law and shall be applied retroactively.
255	Section 5.  Section 701.04, Florida Statutes, is amended to
256	read:
257	701.04  Cancellation of mortgages, liens, and judgments.-
258	(1)(a)  Within 15 14 days after the date on which a receipt
259	of the written request for an estoppel statement is received
260	from of a mortgagor, the holder of an interest in the property
261	encumbered by a mortgage, or the designee of either, requesting
262	a payoff amount for the mortgage as of a certain date, the
263	holder of a mortgage shall provide a written estoppel statement
264	executed by an officer or authorized agent of the holder of the
265	mortgage deliver to the person making the request mortgagor at
266	the a place, fax number, or e-mail address designated in the
267	written request. The an estoppel statement shall set letter
268	setting forth the following:
269	1.  The unpaid balance of the loan secured by the mortgage,
270	including principal, all accrued interest, and any other charges
271	properly due under or secured by the mortgage as of the
272	requested date certain.
273	2.  and Interest on a per-day basis for the unpaid balance
274	for a period of no less than 20 days after the date of delivery
275	of the estoppel statement.
276	3.  Certification that the party providing the estoppel
277	statement is the holder of the original promissory note secured
278	thereby, or is the person or agent of the person entitled to
279	enforce the note pursuant to s. 673.3011, as the case may be.
280	4.  A commitment to comply with subsection (3) upon timely
281	receipt of the amounts set forth in the estoppel statement.
282	(b)  The mortgagee may not charge a fee for the preparation
283	or delivery of the first two estoppel statements requested for
284	any one mortgage in any calendar month. This paragraph is not
285	intended to limit requirements of federal law.
286	(c)  Subsequent owners of the property encumbered by the
287	mortgage, and creditors and lienholders taking an interest in
288	the property, for a valuable consideration, and those claiming
289	by, through, and under them, may rely on the estoppel statement
290	and shall be entitled to the benefits thereof.
291	(d)  Whenever the amount of money due on any mortgage or,
292	lien is, or judgment shall be fully paid to the person or party
293	entitled to the payment thereof, or all obligations secured by
294	the mortgage or lien are otherwise satisfied, the mortgagee,
295	creditor, or assignee, or the attorney of record in the case of
296	a judgment, to whom such payment has shall have been made or
297	satisfaction has been given, shall execute in writing an
298	instrument acknowledging satisfaction of the said mortgage,
299	lien, or judgment and have the same acknowledged, or proven, and
300	duly entered of record in the official records book provided by
301	law for such purposes in the proper county. When the person or
302	party executing the satisfaction is not shown as the owner of
303	the mortgage in the official records, the instrument shall be
304	supplemented by a sworn certification that the person executing
305	the satisfaction was then in physical possession of the original
306	promissory note secured by the mortgage or was then a person
307	entitled to enforce the note pursuant to s. 673.3011 and, if the
308	latter, shall provide the specific factual basis for such
309	authority.
310	(e)  If the written request for an estoppel statement is
311	not from the mortgagor or the designee of the mortgagor, the
312	request shall include a copy of the instrument or instruments
313	showing the requestor's ownership interest in the property and
314	the unpaid balance of the loan secured by the mortgage need not
315	be itemized.
316	(2)(a)  Within 60 days after of the date of receipt of the
317	full payment of the mortgage in accord with the estoppel
318	statement, lien, or judgment, the person required to acknowledge
319	satisfaction of the mortgage, lien, or judgment shall send or
320	cause to be sent the recorded satisfaction to the maker of the
321	promissory note, or such other person as may be designated in
322	writing by the payor at or after the final payment, the recorded
323	satisfaction and, in the case of the payor of a mortgage note,
324	either:
325	1.  The original promissory note, marked "paid in full"; or
326	2.  A lost, destroyed, or stolen note affidavit together
327	with exhibits in compliance with s. 702.015 and evidence of
328	adequate protections as provided in s. 702.11 person who has
329	made the full payment. In the case of a civil action arising out
330	of the provisions of this section, the prevailing party shall be
331	entitled to attorney's fees and costs.
332	(b)  If the documents required by this subsection have not
333	been delivered within 60 days, the party who received payment on
334	the note or mortgage shall pay to the maker of the promissory
335	note or its designee a fee in the amount of $100 per day for
336	each day beyond 60 days that the documents have not been
337	delivered. The aggregate fees under this paragraph may not
338	exceed $5,000.
339	(3)(2)  Whenever a writ of execution has been issued,
340	docketed, and indexed with a sheriff and the judgment upon which
341	it was issued has been fully paid, it shall be the
342	responsibility of the party receiving payment to request, in
343	writing, addressed to the sheriff, return of the writ of
344	execution as fully satisfied.
345	(4)  A summary procedure pursuant to s. 51.011 may be
346	brought to compel compliance with the various obligations and
347	duties of this section, and the prevailing party shall recover
348	reasonable attorney fees and costs. The court may limit recovery
349	of attorney fees and costs when an unreasonable number of
350	requests for estoppel statements has been made.
351	Section 6.  Section 701.045, Florida Statutes, is created
352	to read:
353	701.045  Cancellation of liens and judgments.-
354	(1)  Whenever the amount of money due on any lien, other
355	than a mortgage, or judgment is fully paid to the person or
356	party entitled to such payment, the creditor or assignee, or the
357	attorney of record in the case of a judgment, to whom such
358	payment has been made shall execute in writing an instrument
359	acknowledging satisfaction of the lien or judgment and have it
360	acknowledged, or proven, and duly entered of record in the
361	official records in the proper county. Within 60 days after the
362	date of receipt of the full payment of the lien or judgment, the
363	person required to acknowledge satisfaction of the lien or
364	judgment shall send or cause to be sent the recorded
365	satisfaction to the person who has made the full payment. In the
366	case of a civil action arising out of this section, the
367	prevailing party shall be entitled to attorney fees and costs.
368	(2)  Whenever a writ of execution has been issued,
369	docketed, and indexed with a sheriff and the judgment upon which
370	it was issued has been fully paid, it shall be the
371	responsibility of the party receiving payment to request, in
372	writing and addressed to the sheriff, return of the writ of
373	execution as fully satisfied.
374	(3)  The party receiving full payment of any judgment shall
375	also comply with s. 55.206, as appropriate.
376	Section 7.  Section 702.015, Florida Statutes, is created
377	to read:
378	702.015  Elements of complaint; lost, destroyed, or stolen
379	note affidavit.-Any complaint which seeks to foreclose a lien on
380	real property which secures a promissory note must contain
381	affirmative allegations expressly made by the plaintiff at the
382	time the proceeding is commenced that the plaintiff is the
383	holder of the original note secured by the mortgage or allege
384	with specificity the factual basis by which the plaintiff is a
385	person entitled to enforce the note under s. 673.3011. When a
386	party has been delegated the authority to institute a mortgage
387	foreclosure action on behalf of the holder of the note, the
388	complaint shall describe the authority of the plaintiff and
389	identify, with specificity, the document that grants the
390	plaintiff the authority to act on behalf of the holder of the
391	note.
392	(1)  Unless the complaint includes a count to enforce a
393	lost, destroyed, or stolen instrument, the plaintiff shall cause
394	to be filed with the court, contemporaneously with and as a
395	condition precedent to the filing of the complaint for
396	foreclosure, either:
397	(a)  The original promissory note; or
398	(b)  Certification, under penalty of perjury, that the
399	plaintiff is in physical possession of the original promissory
400	note. Such certification must set forth the physical location of
401	the note, the name and title of the individual giving the
402	certification, and the name of the person who personally
403	verified such physical possession and the time and date on which
404	possession was verified. Correct copies of the note and all
405	allonges thereto shall be attached to the certification. The
406	original note shall be filed with the court prior to the entry
407	of any judgment of foreclosure or judgment on such note.
408	(2)  When the complaint includes a count to enforce a lost,
409	destroyed, or stolen instrument, an affidavit executed under
410	penalty of perjury shall be attached to the complaint. The
411	affidavit shall:
412	(a)  Detail a clear chain of all assignments for the
413	promissory note that is the subject of the action.
414	(b)  Set forth facts showing that the plaintiff is entitled
415	to enforce a lost, destroyed, or stolen instrument pursuant to
416	s. 673.3091.
417	(c)  Include as exhibits to the affidavit such copies of
418	the note and allonges thereto, assignments of mortgage, audit
419	reports showing physical receipt of the original note, or other
420	evidence of the acquisition, ownership, and possession of the
421	note as may be available to the plaintiff.
422	(3)  Following dismissal of the foreclosure case without
423	prejudice and without completion of the foreclosure, and upon
424	request of the plaintiff, the clerk may return the original
425	promissory note to the plaintiff without need for further order
426	of the court.
427	Section 8.  Section 702.035, Florida Statutes, is amended
428	to read:
429	702.035  Legal notice concerning foreclosure proceedings.-
430	(1)  The foreclosing party only in a mortgage foreclosure
431	action involving an occupied residential real property,
432	including individual units of condominiums and cooperatives,
433	designated principally for occupation by from one to four
434	families, but not including an interest in a timeshare property
435	the foreclosure of which is governed by part III of chapter 721,
436	shall provide notice substantially in accordance with this
437	section to:
438	(a)  Any mortgagor having an interest in the property and
439	the record title owners of the property; and
440	(b)  All tenants of a dwelling unit in the property if the
441	foreclosing party is seeking to foreclose the interest of the
442	tenants.
443	(2)  The notice required under paragraph (1)(a) shall:
444	(a)  Be delivered with the summons and complaint. Such
445	notice shall be in 14-point boldfaced type and the title of the
446	notice shall be in 20-point boldfaced type. The notice shall be
447	on its own page.
448	(b)  Appear as follows:
449
450	NOTICE: YOU ARE IN DANGER OF LOSING YOUR HOME
451
452	If you fail to respond to the summons and complaint in
453	this foreclosure action, you may lose your home.
454	Please read the summons and complaint carefully. You
455	should immediately contact an attorney or your local
456	legal aid office to obtain advice on how to protect
457	yourself. Sending a payment to your mortgage company
458	will not stop this foreclosure action.
459
460	YOU MUST RESPOND BY PREPARING A DOCUMENT KNOWN AS AN
461	ANSWER AND DELIVERING A COPY OF THE ANSWER TO THE
462	ATTORNEY FOR THE PLAINTIFF (LENDER) AND FILING THE
463	ORIGINAL ANSWER WITH THE COURT WITHIN 20 DAYS AFTER
464	BEING SERVED. THERE IS NO CHARGE FOR FILING AN ANSWER.
465	A TELEPHONE CALL OR E-MAIL TO THE ATTORNEY FOR THE
466	PLAINTIFF WILL NOT SATISFY THE REQUIREMENT TO FILE AN
467	ANSWER. THIS LAWSUIT DOES NOT MEAN THAT YOU MUST
468	IMMEDIATELY MOVE OUT OF YOUR PROPERTY.
469
470	SOURCES OF INFORMATION AND ASSISTANCE:
471	The state encourages you to become informed about your
472	options in foreclosure. You should contact a licensed
473	Florida attorney to assist you. If you cannot afford
474	an attorney, your local legal aid office may be able
475	to assist you at little or no cost to you. There are
476	also government agencies and nonprofit organizations
477	that you may contact for cost-free information about
478	possible options, including trying to work with your
479	lender during this process.
480
481	FORECLOSURE RESCUE SCAMS:
482	Be careful of people who approach you with offers to
483	help you keep your home. There are individuals who
484	watch for notices of foreclosure actions in order to
485	unfairly profit from a homeowner's distress. You
486	should be extremely careful about any such promises
487	and any suggestions that you pay them a fee or deed
488	over your property. State law requires any nonattorney
489	offering such services for profit to enter into a
490	contract which fully describes the services they will
491	perform and fees they will charge, and which prohibits
492	them from taking any money from you until they have
493	completed all such promised services.
494
495	(3)  The notice to any tenant required under paragraph
496	(1)(b) shall:
497	(a)  Be delivered with the summons and complaint. The
498	foreclosing party shall provide its name, address, and telephone
499	number on the notice. The title of the notice shall be in 14-
500	point boldfaced type. The notice shall be on its own page.
501	(b)  Appear substantially as follows:
502
503	NOTICE TO TENANTS OF BUILDINGS IN FORECLOSURE
504
505	Florida law requires that we provide you with this
506	notice about the foreclosure process. Please read it
507	carefully.
508
509	We, ...(name of foreclosing party)..., are the
510	foreclosing party and are located at ...(foreclosing
511	party's address).... We can be reached at
512	...(foreclosing party's telephone number)....
513
514	The property you are renting is the subject of a
515	foreclosure proceeding. You should file an answer to
516	this summons and complaint and deliver a copy of the
517	answer to the attorney for the plaintiff and file the
518	original with the court within 20 days after being
519	served. There is no charge for filing an answer. A
520	telephone call or an e-mail to the attorney for the
521	plaintiff will not satisfy the requirement of filing
522	an answer. If you have a written lease and are not the
523	owner of the residence, and the lease requires payment
524	of rent that at the time it was entered into was not
525	substantially less than the fair market rent for the
526	property, you may be entitled to remain in occupancy
527	under the federal Protecting Tenants at Foreclosure
528	Act of 2009, as amended. If you do not have a written
529	lease, under the same federal law you may be entitled
530	to remain in your home until 90 days after the person
531	or entity that acquires title to the property provides
532	you with a notice. If you are a subsidized tenant
533	under federal, state, or local law or if you are a
534	tenant subject to rent control, rent stabilization, or
535	a federal statutory scheme, you may have other rights.
536	If the federal Protecting Tenants at Foreclosure Act
537	of 2009, as amended, and these other laws do not apply
538	to your situation, you may be required to vacate the
539	property upon completion of the foreclosure. The
540	filing of a foreclosure action does not automatically
541	cease your obligation to pay rent to your landlord.
542	You should contact a licensed Florida attorney to
543	understand your rights. If you cannot afford an
544	attorney, your local legal aid office may be able to
545	assist you at little or no cost to you.
546
547	(4)  Only a single notice is required under this section
548	for any party defendant.
549	(5)  Whenever a legal advertisement, publication, or notice
550	relating to a foreclosure proceeding is required to be placed in
551	a newspaper, it is the responsibility of the petitioner or
552	petitioner's attorney to place such advertisement, publication,
553	or notice. For counties having with more than 1 million total
554	population as reflected in the 2000 Official Decennial Census of
555	the United States Census Bureau as shown on the official website
556	of the United States Census Bureau, any notice of publication
557	required by this section shall be deemed to have been published
558	in accordance with the law if the notice is published in a
559	newspaper that has been entered as a periodical matter at a post
560	office in the county in which the newspaper is published, is
561	published a minimum of 5 days a week, exclusive of legal
562	holidays, and has been in existence and published a minimum of 5
563	days a week, exclusive of legal holidays, for 1 year or is a
564	direct successor to a newspaper that has been in existence for 1
565	year that has been published a minimum of 5 days a week,
566	exclusive of legal holidays. The advertisement, publication, or
567	notice shall be placed directly by the attorney for the
568	petitioner, by the petitioner if acting pro se, or by the clerk
569	of the court. Only the actual costs charged by the newspaper for
570	the advertisement, publication, or notice may be charged as
571	costs in the action.
572	Section 9.  Section 702.036, Florida Statutes, is created
573	to read:
574	702.036  Finality of mortgage foreclosure judgment.-
575	(1)(a)  In any action or proceeding in which a party seeks
576	to set aside, invalidate, or challenge the validity of a final
577	judgment of foreclosure of a mortgage or to establish or
578	reestablish a lien or encumbrance on the property in abrogation
579	of the final judgment of foreclosure of a mortgage, the court
580	shall treat such request solely as a claim for monetary damages
581	and may not grant relief that adversely affects the quality or
582	character of the title to the property, if:
583	1.  A final judgment of foreclosure of a mortgage was
584	entered as to a property;
585	2.  All applicable appeals periods have run as to the final
586	judgment of foreclosure of a mortgage with no appeals having
587	been taken, or any appeals having been finally resolved;
588	3.  The property has been acquired for value, by a person
589	not affiliated with the foreclosing lender, at a time in which
590	no lis pendens regarding the suit to set aside, invalidate, or
591	challenge the foreclosure appears in the official records of the
592	county where the property was located; and
593	4.  The party seeking relief from the final judgment of
594	foreclosure of a mortgage was properly served in the foreclosure
595	lawsuit as provided in chapter 48 or chapter 49.
596	(b)  This subsection does not limit the right to pursue any
597	other relief to which a person may be entitled, including, but
598	not limited to, compensatory damages, punitive damages,
599	statutory damages, consequential damages, injunctive relief, or
600	fees and costs, which does not adversely affect the ownership of
601	the title to the property as vested in the unaffiliated
602	purchaser for value.
603	(2)  For purposes of this section, the following, without
604	limitation, shall be considered persons affiliated with the
605	foreclosing lender:
606	(a)  The foreclosing lender or any loan servicer for the
607	loan being foreclosed;
608	(b)  Any past or present owner or holder of the loan being
609	foreclosed;
610	(c)  Any maintenance company, holding company, foreclosure
611	services company, or law firm under contract to any entity
612	listed in paragraph (a), paragraph (b), or this paragraph, with
613	regard to the loan being foreclosed; or
614	(d)  Any parent, entity, subsidiary, or other person who
615	directly, or indirectly through one or more intermediaries,
616	controls or is controlled by, or is under common control with,
617	any entity listed in paragraph (a), paragraph (b), or paragraph
618	(c).
619	(3)  After foreclosure of a mortgage based upon the
620	enforcement of a lost, destroyed, or stolen note, a person who
621	is not a party to the underlying foreclosure action but who
622	claims to be the actual holder of the promissory note secured by
623	the foreclosed mortgage shall have no claim against the
624	foreclosed property after it has been conveyed for valuable
625	consideration to a person not affiliated with the foreclosing
626	lender. This section does not preclude the actual holder of the
627	note from pursuing recovery from any adequate protection given
628	pursuant to s. 673.3091 or from the party who wrongfully claimed
629	to be the owner or holder of the promissory note, the maker of
630	the note, or any other person against whom it may have a claim
631	relating to the note.
632	Section 10.  Section 702.04, Florida Statutes, is amended
633	to read:
634	702.04  Mortgaged Lands in different counties.-When a
635	mortgage or other lien includes lands, railroad track, right-of-
636	way, or terminal facilities and station grounds, lying in two or
637	more counties, it may be foreclosed in any one of those said
638	counties, and all proceedings shall be had in that county as if
639	all the mortgaged land, railroad track, right-of-way, or
640	terminal facilities and station grounds lay therein, except that
641	any notice of the sale must be published in every county wherein
642	any of the lands, railroad track, right-of-way, or terminal
643	facilities and station grounds to be sold lie. After final
644	disposition of the suit, the clerk of the circuit court shall
645	prepare and forward a certified copy of the decree of
646	foreclosure, and the certificates of title, if any, and sale and
647	of the decree of confirmation of sale to the clerk of the
648	circuit court of every county wherein any of the mortgaged
649	lands, railroad tracks, right-of-way, or terminal facilities and
650	station grounds lie, to be recorded in the official records
651	foreign judgment book of each such county, and the costs of such
652	copies and of the recording record thereof shall be taxed as
653	costs in the cause.
654	Section 11.  Section 702.06, Florida Statutes, is amended
655	to read:
656	702.06  Deficiency decree; common-law suit to recover
657	deficiency.-
658	(1)  In all suits for the foreclosure of mortgages
659	heretofore or hereafter executed, the entry of a deficiency
660	decree for any portion of a deficiency, should one exist, shall
661	be within the sound judicial discretion of the court, but the
662	complainant shall also have the right to sue at common law to
663	recover such deficiency, unless the court in the foreclosure
664	action has granted or denied a deficiency judgment provided no
665	suit at law to recover such deficiency shall be maintained
666	against the original mortgagor in cases where the mortgage is
667	for the purchase price of the property involved and where the
668	original mortgagee becomes the purchaser thereof at foreclosure
669	sale and also is granted a deficiency decree against the
670	original mortgagor.
671	(2)(a)  In respect to an owner-occupied one-family to four-
672	family dwelling unit, the party to whom a deficiency is owing
673	may move for the entry of a deficiency judgment in the
674	foreclosure action or file a separate action for collection of
675	the deficiency, no later than 1 year after the property has
676	vested in the foreclosing lender or other purchaser at the
677	foreclosure sale, or October 1, 2013, whichever is later.
678	(b)  If a deficiency is not pursued within the time periods
679	specified in this section, the vesting of the property pursuant
680	to s. 702.068 or proceeds of the sale, regardless of the amount,
681	shall be deemed to be in full satisfaction of the mortgage debt
682	and a right to recover any deficiency in any subsequent action
683	or proceeding shall be extinguished.
684	(c)  This subsection does not restrict the authority of the
685	court to determine the entitlement to any assets held by any
686	receiver or any assignee of the rents and profits of the
687	property.
688	Section 12.  Section 702.062, Florida Statutes, is created
689	to read:
690	702.062  Notice of extensions; defaults; case management
691	conference.-
692	(1)  In any mortgage foreclosure proceeding, other than a
693	proceeding seeking foreclosure of a timeshare interest under
694	part III of chapter 721, the plaintiff's counsel shall cause to
695	be filed with the clerk of the court a notice of any extensions
696	of time for a party to respond to an initial complaint which may
697	be granted. Such notice shall be filed within the later of 5
698	days after the granting of such extension or 60 days after the
699	effective date of this act and may be made by copy of the letter
700	confirming the extension. This requirement is not intended to
701	discourage any party from requesting or granting such extensions
702	of time.
703	(2)  Any party may notify the court and all parties as to
704	any foreclosure proceeding in which the file indicates:
705	(a)  All parties defendant have been served personally by
706	substituted service or by publication; and
707	(b)  No party defendant has filed an answer or other
708	response denying, contesting, or asserting defenses to the
709	plaintiff's entitlement to the foreclosure, and the time has run
710	for the entry of defaults against all nonresponding parties
711	defendant.
712	(3)  The court, on its own motion or motion of any party,
713	may enter defaults against nonresponding parties in accordance
714	with the Florida Rules of Civil Procedure and shall direct the
715	plaintiff in the foreclosure action to file all affidavits,
716	certifications, and proofs necessary or appropriate for the
717	entry of a summary judgment of foreclosure within a time certain
718	or show cause why such a filing should not be made. The filing
719	of these materials shall be construed as a motion for summary
720	judgment, and the court may thereafter enter final summary
721	judgment or set the case for trial in accord with its sound
722	judicial discretion. This subsection does not restrict the
723	authority of the court to set aside a default or a judgment
724	granted thereon pursuant to the Florida Rules of Civil
725	Procedure.
726	(4)  After all parties have been served and not earlier
727	than 48 days after the filing of the foreclosure case, any party
728	may request a case management conference at which the court
729	shall set definite timetables for moving the case forward.
730	(5)  The court may grant extensions or stays in the
731	proceedings on a showing that the plaintiff and property owner
732	defendant are engaged in mediation or good faith negotiations
733	with regard to a loan modification or other settlement or
734	otherwise as justice may require. The court may condition an
735	extension or stay on the property owner or the lender, if it so
736	chooses, paying any condominium or homeowners' association
737	assessments coming due after the date of the extension or stay
738	and keeping such assessments paid current through the conclusion
739	of the foreclosure action.
740	Section 13.  Section 702.065, Florida Statutes, is amended
741	to read:
742	702.065  Final judgment in uncontested mortgage foreclosure
743	proceedings where deficiency judgment waived; attorney
744	attorney's fees when default judgment entered.-
745	(1)  In uncontested mortgage foreclosure proceedings in
746	which the mortgagee waives the right to recoup any deficiency
747	judgment, the court shall enter final judgment within 90 days
748	after from the date of the close of pleadings. For the purposes
749	of this subsection, a mortgage foreclosure proceeding is
750	uncontested if a default has been entered against all defendants
751	or no response an answer not contesting the foreclosure has been
752	timely filed or a default judgment has been entered by the
753	court.
754	(2)  In a mortgage foreclosure proceeding, when a default
755	judgment has been entered against the mortgagor and the note or
756	mortgage provides for the award of reasonable attorney
757	attorney's fees, it is not necessary for the court to hold a
758	hearing or adjudge the requested attorney attorney's fees to be
759	reasonable if the fees do not exceed the greater of 1.5 3
760	percent of the principal amount owed at the time of filing the
761	complaint or $1,500, even if the note or mortgage does not
762	specify the percentage of the original amount that would be paid
763	as liquidated damages. Such fees constitute liquidated damages
764	in any proceeding to enforce the note or mortgage. This section
765	does not preclude a challenge to the reasonableness of the
766	attorney attorney's fees.
767	Section 14.  Section 702.068, Florida Statutes, is created
768	to read:
769	702.068  Election by foreclosing lender to proceed without
770	public sale.-
771	(1)  When the amount of principal and interest, exclusive
772	of fees and costs, owed to a foreclosing lender equals or
773	exceeds 120 percent of the just value of the property subject to
774	foreclosure, as determined by the county property appraiser in
775	the most recent certified tax roll, the foreclosing lender may
776	elect to foreclose without a public sale of the property under
777	chapter 45. Except as otherwise provided in this subsection,
778	nothing in this section alters any aspect of the judicial
779	foreclosure proceeding; the rights, remedies, and defenses
780	available to the parties; the court rules and procedures to be
781	followed; or the authority of the court to supervise and manage
782	the foreclosure case.
783	(2)  A plaintiff electing to proceed without a public sale
784	may include the request to proceed under this section in any
785	complaint or amended complaint filed, or the plaintiff or any
786	other party may file a motion to proceed under this section at
787	any time prior to the entry of a final judgment of foreclosure.
788	(3)  Upon making the election to foreclose without a public
789	sale, the party making the election shall cause notices to be
790	sent to each party, other than the party sending the notice, as
791	follows:
792	(a)  If the election to proceed without a public sale is
793	made in the complaint, the notice shall be served together with
794	the complaint on the defendants as provided in chapter 48 or
795	chapter 49. If the election is made after the initial service of
796	the complaint, the notice shall be served on any party against
797	whom a default has been entered as provided in chapter 48 or
798	chapter 49 and served on other parties as provided in the
799	Florida Rules of Civil Procedure. If service is by publication,
800	the published notice shall indicate that "the plaintiff has
801	elected to proceed without a public sale as provided under
802	section 702.068, Florida Statutes."
803	(b)  The notice provided to the owners of the property,
804	tenants, holders of subordinate liens and other interests in the
805	property, and any other defendants shall be on its own page, in
806	14-point boldfaced type and the title of the notice shall be in
807	20-point boldfaced type, and in substantially the following
808	form:
809
810	NOTICE OF FORECLOSURE WITHOUT PUBLIC SALE
811
812	Florida Law requires that we provide you notice
813	that this foreclosure may proceed without a public
814	sale. Please read it carefully.
815
816	You have been identified as the owner of, the
817	holder of a mortgage or lien on, or otherwise having
818	an interest in property located at ...(property
819	address)... which is subject to foreclosure. You are
820	hereby notified that ...(name and address of
821	plaintiff)... has filed a foreclosure lawsuit with
822	regard to the property and has elected to proceed
823	without a public sale pursuant to section 702.068,
824	Florida Statutes. Under this provision, after the
825	entry of a final judgment of foreclosure the property
826	will vest automatically in the foreclosing lender.
827	There will not be a public sale of the property, and
828	you may lose your equity in this property or any
829	equity that would be available to pay subordinate
830	liens you may hold.
831	At any time prior to the entry of a final
832	judgment of foreclosure, you may demand a traditional
833	public sale in order to protect any equity in the
834	property, but anyone making such a demand will
835	initially be responsible for paying $450 towards the
836	costs of advertising, notice, and other expenses
837	relating to that public sale. Under certain
838	circumstances, those costs may be repaid from the
839	proceeds of the public sale.
840	NOTE: The right to demand a public sale at any
841	time prior to the entry of a final judgment does not
842	extend the 20-day period to initially respond to the
843	complaint.
844	If you have any questions about this notice or
845	the lawsuit, you should immediately consult a licensed
846	Florida attorney.
847
848	(c)  The notice in paragraph (b) is informational only.
849	Nonmaterial defects in the content of this notice do not
850	invalidate any title vested without a public sale under this
851	section, as long as proper service has been obtained.
852	(d)  The election to proceed without a public sale and the
853	delivery of notices may occur not later than 15 days before the
854	entry of a final judgment of foreclosure.
855	(4)  At any time before the entry of a final order of
856	foreclosure without a public sale, any party may demand a public
857	sale by filing a demand for such with the clerk of the court. If
858	a public sale is demanded, the court shall proceed with the
859	foreclosure and sale under other applicable law. The party
860	demanding a public sale under this section shall
861	contemporaneously deposit with the clerk $450 conditioned to pay
862	all costs of noticing and advertising the public sale and any
863	clerk's fee or other service fees charged in connection with the
864	public sale.
865	(a)  If the price returned at the public sale exceeds the
866	amount determined in the final judgment to be owed under the
867	mortgage to the foreclosing lender, including principal, accrued
868	interest, expenses, attorney fees and costs, and the costs of
869	noticing and advertising the sale, any clerk's fees or other
870	service fees shall be taxed as costs and reimbursed to the party
871	making the cost deposit, up to the amount of such deposit.
872	(b)  If the price returned at the public sale does not
873	exceed the amount owed under the mortgage to the foreclosing
874	lender, the cost deposit shall be applied to repay the
875	foreclosing lender for the actual costs of noticing and
876	advertising the public sale and any clerk's fees and other
877	service fees, with any excess being returned to the party making
878	the cost deposit.
879	(5)  Upon finding that all requirements of this section and
880	conditions for the granting of a final judgment of foreclosure
881	have been satisfied, and no public sale has been demanded, the
882	court may, as is consistent with justice and sound judicial
883	discretion, enter a final judgment in foreclosure.
884	(a)  The final judgment shall take effect no sooner than 10
885	days after the entry thereof and, upon the recording of the
886	certificate of title issued pursuant to paragraph (d), shall
887	vest all of the owners' right, title, and interest in and to the
888	property subject to foreclosure in the plaintiff or plaintiff's
889	designee as identified in the final judgment, and, if so found
890	by the court, that each defendant and all persons claiming under
891	or against each defendant since the filing of the notice of lis
892	pendens shall be foreclosed of all estate or claim in the
893	property, except as to claims or rights under chapter 718 or
894	chapter 720, if any.
895	(b)  The owner or any party defendant may redeem the
896	property at any time prior to the final judgment becoming
897	effective. Upon redemption:
898	1.  The clerk shall cause a notice of redemption to be
899	filed in the court records and in the official records and to
900	cause an order, if any, approving or ratifying the redemption to
901	be filed in the official records; and
902	2.  The plaintiff shall cause the mortgage to be satisfied
903	of record.
904	(c)  The final judgment shall recite the just value of the
905	property as determined by the county property appraiser and
906	include a finding that the principal and accrued interest owed
907	to the foreclosing lender equals or exceeds 120 percent of the
908	just value.
909	(d)  After the time provided in the final judgment for
910	redemption, and provided redemption has not occurred, the clerk
911	shall issue a certificate of title vesting title to the property
912	in the foreclosing plaintiff or its designee.
913	(6)  When the foreclosing lender elects to foreclose
914	without a public sale, upon entry of a judgment and issuing the
915	certificate of title under this section, the debt that was
916	secured by the foreclosed mortgage shall be deemed satisfied and
917	any right to pursue a deficiency decree or other action to
918	enforce such note is waived. When a party defendant elects to
919	proceed without a public sale, the plaintiff may pursue a
920	deficiency if and as otherwise permitted by law.
921	Section 15.  Section 702.10, Florida Statutes, is amended
922	to read:
923	702.10  Order to Show cause; entry of final judgment of
924	foreclosure; payment during foreclosure.-
925	(1)  After a complaint in a foreclosure proceeding has been
926	filed which is verified in the form of an affidavit sufficient
927	to support a motion for summary judgment, the plaintiff
928	mortgagee may request a hearing to show cause an order to show
929	cause for the entry of final judgment and the court shall
930	immediately review the complaint. Upon such request, the clerk
931	If, upon examination of the complaint, the court finds that the
932	complaint is verified and alleges a cause of action to foreclose
933	on real property, the court shall promptly issue a summons an
934	order directed to each the defendant to show cause why a final
935	judgment of foreclosure should not be entered.
936	(a)  The summons order shall:
937	1.  Set the date and time for a hearing on the order to
938	show cause. However, the date for the hearing may not occur be
939	set sooner than the later of 20 days after the service of the
940	summons or 45 days after the service of the complaint order.
941	When service is obtained by publication, the date for the
942	hearing may not be set sooner than 55 30 days after the first
943	publication. The hearing must be held within 60 days after the
944	date of service. Failure to hold the hearing within such time
945	does not affect the validity of the order to show cause or the
946	jurisdiction of the court to issue subsequent orders.
947	2.  Direct the time within which service of the order to
948	show cause and the complaint must be made upon the defendant.
949	2.3.  State that the filing of defenses by a motion or by a
950	responsive pleading verified or sworn answer at or before the
951	hearing to show cause may constitute constitutes cause for the
952	court not to enter the attached final judgment.
953	3.4.  State that any the defendant has the right to file
954	affidavits or other papers at or before the time of the hearing
955	to show cause and may appear personally or by way of an attorney
956	at the hearing.
957	4.5.  State that, if any the defendant files defenses by a
958	motion, the hearing time may be used to hear the defendant's
959	motion.
960	5.6.  State that, if any the defendant fails to appear at
961	the hearing to show cause or fails to file a response defenses
962	by a motion or by a verified or sworn answer or files an answer
963	not contesting the foreclosure, the defendant shall may be
964	deemed considered to have waived the right to a hearing and in
965	such case the court shall, unless the record shows that the
966	relief is unavailable, may enter a final judgment of foreclosure
967	ordering the clerk of the court to conduct a foreclosure sale.
968	6.7.  State that if the mortgage provides for reasonable
969	attorney attorney's fees and the requested attorney attorney's
970	fees do not exceed the greater of 1.5 3 percent of the principal
971	amount owed at the time of filing the complaint or $1,500, it is
972	unnecessary for the court to hold a hearing or adjudge the
973	requested attorney attorney's fees to be reasonable.
974	7.8.  Attach the proposed final judgment of foreclosure the
975	plaintiff requests the court to will enter, if the defendant
976	waives the right to be heard at the hearing on the order to show
977	cause.
978	8.9.  Require the plaintiff mortgagee to serve a copy of
979	the summons order to show cause on each defendant the mortgagor
980	in the following manner:
981	a.  If a defendant the mortgagor has been served with the
982	complaint and original process, service of the summons to show
983	cause on that defendant order may be made in the manner provided
984	in the Florida Rules of Civil Procedure.
985	b.  If a defendant the mortgagor has not been served with
986	the complaint and original process, the summons order to show
987	cause, together with the summons and a copy of the complaint,
988	shall be served on the defendant mortgagor in the same manner as
989	provided by law for original process.
990
991	Any final judgment of foreclosure entered under this subsection
992	is for in rem relief only. Nothing in this subsection shall
993	preclude the entry of a deficiency judgment where otherwise
994	allowed by law.
995	(b)  The right to be heard at the hearing to show cause is
996	waived if a the defendant, after being served as provided by law
997	with a an order to show cause summons, fails to file a response
998	contesting the foreclosure engages in conduct that clearly shows
999	that the defendant has relinquished the right to be heard on
1000	that order. The defendant's failure to file defenses by a motion
1001	or by a sworn or verified answer or fails to appear at the
1002	hearing duly scheduled on the order to show cause summons
1003	presumptively constitutes conduct that clearly shows that the
1004	defendant has relinquished the right to be heard. If a defendant
1005	files a response contesting the foreclosure defenses by a motion
1006	or by a verified or sworn answer at or before the hearing, such
1007	response may constitute action constitutes cause upon the
1008	determination of the court as set forth in paragraph (d) and may
1009	preclude precludes the entry of a final judgment at the hearing
1010	to show cause.
1011	(c)  In a mortgage foreclosure proceeding, when a default
1012	judgment has been entered against the mortgagor and the note or
1013	mortgage provides for the award of reasonable attorney
1014	attorney's fees, it is unnecessary for the court to hold a
1015	hearing or adjudge the requested attorney attorney's fees to be
1016	reasonable if the fees do not exceed the greater of 1.5 3
1017	percent of the principal amount owed on the note or mortgage at
1018	the time of filing of the complaint or $1,500, even if the note
1019	or mortgage does not specify the percentage of the original
1020	amount that would be paid as liquidated damages.
1021	(d)  If the court finds that each the defendant has waived
1022	the right to be heard as provided in paragraph (b), the court
1023	shall promptly enter a final judgment of foreclosure without the
1024	need for a further hearing upon either the filing with the court
1025	of the original note or satisfaction of the conditions for
1026	establishment of the lost note pursuant to law. If the court
1027	finds that a the defendant has not waived the right to be heard
1028	on the order to show cause, the court shall then determine
1029	whether there is cause not to enter a final judgment of
1030	foreclosure. If the court finds that a the defendant has not
1031	shown cause, the court shall promptly enter a judgment of
1032	foreclosure.
1033	(2)  In an action for a mortgage foreclosure, on properties
1034	other than a homestead other than residential real estate, the
1035	mortgagee may request that the court enter an order directing
1036	the mortgagor defendant to show cause why an order to make
1037	payments during the pendency of the foreclosure proceedings or
1038	an order to vacate the premises should not be entered.
1039	(a)  The order shall:
1040	1.  Set the date and time for hearing on the order to show
1041	cause. However, the date for the hearing shall not be set sooner
1042	than 20 days after the service of the order. Where service is
1043	obtained by publication, the date for the hearing shall not be
1044	set sooner than 30 days after the first publication.
1045	2.  Direct the time within which service of the order to
1046	show cause and the complaint shall be made upon each the
1047	defendant.
1048	3.  State that a the defendant has the right to file
1049	affidavits or other papers at the time of the hearing and may
1050	appear personally or by way of an attorney at the hearing.
1051	4.  State that, if a the defendant fails to appear at the
1052	hearing to show cause and fails to file defenses by a motion or
1053	by a verified or sworn answer, the defendant may be deemed to
1054	have waived the right to a hearing and in such case the court
1055	may enter an order to make payment or vacate the premises.
1056	5.  Require the mortgagee to serve a copy of the order to
1057	show cause on the mortgagor in the following manner:
1058	a.  If the mortgagor has been served with the complaint and
1059	original process, service of the order may be made in the manner
1060	provided in the Florida Rules of Civil Procedure.
1061	b.  If the mortgagor has not been served with the complaint
1062	and original process, the order to show cause, together with the
1063	summons and a copy of the complaint, shall be served on the
1064	mortgagor in the same manner as provided by law for original
1065	process.
1066	(b)  The right of a defendant to be heard at the hearing to
1067	show cause is waived if the defendant, after being served as
1068	provided by law with an order to show cause, engages in conduct
1069	that clearly shows that the defendant has relinquished the right
1070	to be heard on that order. A The defendant's failure to file
1071	defenses by a motion or by a sworn or verified answer or to
1072	appear at the hearing duly scheduled on the order to show cause
1073	presumptively constitutes conduct that clearly shows that the
1074	defendant has relinquished the right to be heard.
1075	(c)  If the court finds that a the defendant has waived the
1076	right to be heard as provided in paragraph (b), the court may
1077	promptly enter an order requiring payment in the amount provided
1078	in paragraph (f) or an order to vacate.
1079	(d)  If the court finds that the mortgagor has not waived
1080	the right to be heard on the order to show cause, the court
1081	shall, at the hearing on the order to show cause, consider the
1082	affidavits and other showings made by the parties appearing and
1083	make a determination of the probable validity of the underlying
1084	claim alleged against the mortgagor and the mortgagor's
1085	defenses. If the court determines that the mortgagee is likely
1086	to prevail in the foreclosure action, the court shall enter an
1087	order requiring the mortgagor to make the payment described in
1088	paragraph (e) to the mortgagee and provide for a remedy as
1089	described in paragraph (f). However, the order shall be stayed
1090	pending final adjudication of the claims of the parties if the
1091	mortgagor files with the court a written undertaking executed by
1092	a surety approved by the court in an amount equal to the unpaid
1093	balance of the mortgage on the property, including all
1094	principal, interest, unpaid taxes, and insurance premiums paid
1095	by the mortgagee.
1096	(e)  In the event the court enters an order requiring the
1097	mortgagor to make payments to the mortgagee, payments shall be
1098	payable at such intervals and in such amounts provided for in
1099	the mortgage instrument before acceleration or maturity. The
1100	obligation to make payments pursuant to any order entered under
1101	this subsection shall commence from the date of the motion filed
1102	hereunder. The order shall be served upon the mortgagor no later
1103	than 20 days before the date specified for the first payment.
1104	The order may permit, but shall not require the mortgagee to
1105	take all appropriate steps to secure the premises during the
1106	pendency of the foreclosure action.
1107	(f)  In the event the court enters an order requiring
1108	payments the order shall also provide that the mortgagee shall
1109	be entitled to possession of the premises upon the failure of
1110	the mortgagor to make the payment required in the order unless
1111	at the hearing on the order to show cause the court finds good
1112	cause to order some other method of enforcement of its order.
1113	(g)  All amounts paid pursuant to this section shall be
1114	credited against the mortgage obligation in accordance with the
1115	terms of the loan documents, provided, however, that any
1116	payments made under this section shall not constitute a cure of
1117	any default or a waiver or any other defense to the mortgage
1118	foreclosure action.
1119	(h)  Upon the filing of an affidavit with the clerk that
1120	the premises have not been vacated pursuant to the court order,
1121	the clerk shall issue to the sheriff a writ for possession which
1122	shall be governed by the provisions of s. 83.62.
1123	(i)  For purposes of this section, there is a rebuttable
1124	presumption that a residential property for which a homestead
1125	exemption for taxation was granted according to the certified
1126	rolls of the latest assessment by the county property appraiser,
1127	before the filing of the foreclosure action, is a homestead
1128	residence.
1129	(3)  This section does not supersede or limit other
1130	procedures adopted by the court, including, but not limited to,
1131	mandatory mediation and alternative dispute resolution
1132	processes.
1133	Section 16.  Section 702.11, Florida Statutes, is created
1134	to read:
1135	702.11  Adequate protections for lost, destroyed, or stolen
1136	notes in mortgage foreclosure.-
1137	(1)  In connection with the mortgage foreclosure of a one-
1138	family to four-family residential property, the following
1139	constitute reasonable means of providing adequate protection
1140	under s. 673.3091:
1141	(a)  A written indemnification agreement by a person
1142	reasonably believed sufficiently solvent to honor such an
1143	obligation;
1144	(b)  A surety bond;
1145	(c)  A letter of credit issued by a financial institution;
1146	(d)  A deposit of cash collateral with the clerk of the
1147	court; or
1148	(e)  Such other security as the court may deem appropriate
1149	under the circumstances.
1150
1151	Any security given shall be on terms and in amounts set by the
1152	court, for a time period through the running of the statute of
1153	limitations for enforcement of the underlying note, and
1154	conditioned to indemnify and hold harmless the maker of the note
1155	against any loss or damage, including principal, interest, and
1156	attorney fees and costs, that might occur by reason of a claim
1157	by another person to enforce the note.
1158	(2)  Any person who wrongly claimed to be the holder of or
1159	pursuant to s. 673.3011 to be entitled to enforce a lost,
1160	stolen, or destroyed note and caused the mortgage secured
1161	thereby to be foreclosed shall be liable to the actual holder of
1162	the note, without limitation to any adequate protections given,
1163	for actual damages suffered together with attorney fees and
1164	costs of the actual holder of the note in enforcing rights under
1165	this subsection.
1166	(a)  The actual holder of the note is not required to
1167	pursue recovery against the maker of the note or any guarantor
1168	thereof as a condition precedent to pursuing remedies under this
1169	subsection.
1170	(b)  This subsection does not limit or restrict the ability
1171	of the actual holder of the note to pursue any other claims or
1172	remedies it may have against the maker, the person who wrongly
1173	claimed to be the holder, or any person who facilitated or
1174	participated in the claim to the note or enforcement thereof.
1175	Section 17.  Section 702.12, Florida Statutes, is created
1176	to read:
1177	702.12  Attorney fee as sanctions for raising unsupported
1178	claims or defenses; exceptions; service of motions; damages for
1179	delay of litigation.-
1180	(1)  In any mortgage foreclosure action, upon the court's
1181	initiative or motion of any party, the court shall award a
1182	reasonable attorney fee, including prejudgment interest, to be
1183	paid to the prevailing party in equal amounts by the losing
1184	party and the losing party's attorney on any claim or defense at
1185	any time during a civil proceeding or action in which the court
1186	finds that the losing party or the losing party's attorney knew
1187	or should have known that a claim or defense when initially
1188	presented to the court or at any time before trial:
1189	(a)  Was not supported by the material facts necessary to
1190	establish the claim or defense; or
1191	(b)  Would not be supported by the application of then-
1192	existing law to those material facts.
1193	(2)  At any time in any civil proceeding or action in which
1194	the moving party proves by a preponderance of the evidence that
1195	any action taken by the opposing party, including, but not
1196	limited to, the filing of any pleading or part thereof, the
1197	assertion of or response to any discovery demand, the assertion
1198	of any claim or defense, or the response to any request by any
1199	other party, was taken primarily for the purpose of unreasonable
1200	delay, the court shall award damages to the moving party for its
1201	reasonable expenses incurred in obtaining the order, which may
1202	include attorney fees, and other loss resulting from the
1203	improper delay.
1204	(3)  Notwithstanding subsections (1) and (2), monetary
1205	sanctions may not be awarded:
1206	(a)  Under paragraph (1)(b) if the court determines that
1207	the claim or defense was initially presented to the court as a
1208	good faith argument for the extension, modification, or reversal
1209	of existing law or the establishment of new law, as it applied
1210	to the material facts, with a reasonable expectation of success.
1211	(b)  Under paragraph (1)(a) or paragraph (1)(b) against the
1212	losing party's attorney if he or she has acted in good faith,
1213	based on the representations of his or her client as to the
1214	existence of those material facts.
1215	(c)  Under paragraph (1)(b) against a represented party.
1216	(4)  A motion by a party seeking sanctions under this
1217	section must be served but may not be filed with or presented to
1218	the court unless, within 21 days after service of the motion,
1219	the challenged paper, claim, defense, contention, allegation, or
1220	denial is not withdrawn or appropriately corrected.
1221	(5)  The provisions of this section are supplemental to
1222	other sanctions or remedies available under law or under court
1223	rules.
1224	Section 18.  This act does not apply to the foreclosure of
1225	liens on timeshare interests under the Timeshare Lien
1226	Foreclosure Act, part III of chapter 721, Florida Statutes.
1227	Section 19.  The Division of Statutory Revision is directed
1228	to replace the phrase "the effective date of this act" wherever
1229	it occurs in this act with the date this act becomes a law.
1230	Section 20.  This act is intended to be remedial in nature
1231	and shall apply to any action filed after the effective date of
1232	this act.
1233	Section 21.  This act shall take effect October 1, 2012.

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