HB 213

A bill to be entitled
2An act relating to judicial proceedings; providing a
3short title; specifying public policy concerning
4alternatives to mortgage foreclosure; amending s.
548.23, F.S.; providing that if the holder of an
6unrecorded interest or lien does not intervene in
7certain proceedings concerning property subject to a
8lis pendens before the occurrence of judicial vesting
9pursuant to s. 702.068, F.S., of the property
10described in the notice, the property shall be forever
11discharged from such unrecorded interests and liens;
12amending s. 201.02, F.S.; deleting an obsolete
13provision; providing the documentary stamp tax for a
14final judgment of foreclosure vesting title in a
15lender under a specified provision for foreclosure
16without public sale; amending s. 701.04, F.S.;
17revising the time period in which an estoppel
18statement must be provided; revising the allowable
19methods of delivery and contents of an estoppel
20statement; prohibiting a fee for an estoppel statement
21in certain circumstances; providing a fee for failure
22to deliver certain documents within a specified
23period; providing a limit on such fees; providing that
24specified persons may rely on an estoppel statement;
25requiring a specified certification if the person or
26party executing a satisfaction is not shown as the
27owner of the mortgage in the official records;
28requiring specified requests for an estoppel statement
29to include a copy of instruments showing an ownership
30interest in the property; revising requirements for a
31person required to acknowledge satisfaction of the
32mortgage, lien, or judgment; providing for actions to
33compel compliance; providing for attorney fees;
34creating s. 701.045, F.S.; requiring preparation and
35recording of an instrument acknowledging satisfaction
36of the lien or judgment upon full payment; requiring a
37copy of the recorded satisfaction provided to the
38person making the full payment within a specified
39period; providing for civil actions for compliance;
40providing for attorney fees; providing for
41responsibility for return of satisfaction when an
42execution has been issued and a judgment has
43subsequently been fully paid; providing for compliance
44with specified provisions relating to amendment of a
45judgment lien file; creating s. 702.015, F.S.;
46providing requirements for a complaint which seeks to
47foreclose a lien on real property; providing
48requirements for a complaint that includes a count to
49enforce a lost, destroyed, or stolen instrument;
50amending s. 702.035, F.S.; requiring the foreclosing
51party in a mortgage foreclosure action involving
52specified occupied dwellings to provide notice to
53certain persons; specifying the contents of such
54notice; providing for notice to tenants of such
55buildings in foreclosure; specifying the contents of
56such notice; creating s. 702.036, F.S.; providing for
57finality of mortgage foreclosure judgments; requiring
58certain actions to set aside, invalidate, or challenge
59the validity of a final judgment of foreclosure of a
60mortgage or to establish or reestablish a lien or
61encumbrance on the property in abrogation of the final
62judgment of foreclosure of a mortgage to be treated as
63actions for monetary damages only in certain
64circumstances; providing that certain persons be
65considered persons affiliated with the foreclosing
66lender for specified purposes; prohibiting claims by
67persons claiming to have actual promissory notes
68following foreclosure of a mortgage based upon the
69enforcement of a lost, destroyed, or stolen note;
70amending s. 702.04, F.S.; revising procedural
71provisions for foreclosure of lands in different
72counties; amending s. 702.06, F.S.; deleting
73references to actions at common law for deficiencies
74and original mortgagees; providing requirements for
75deficiency decrees in foreclosures of certain owner-
76occupied dwelling units; providing applicability;
77creating s. 702.062, F.S.; providing for extensions of
78time for a party to respond to an initial complaint in
79certain foreclosure proceedings; providing for notice
80when all parties have been served personally and no
81party defendant has filed an answer or other response
82denying, contesting, or asserting defenses to the
83plaintiff's entitlement to the foreclosure in certain
84circumstances; providing for entry of defaults against
85nonresponding parties; providing for requests for case
86management conferences; providing for extensions or
87stays in certain circumstances; amending s. 702.065,
88F.S.; revising requirements for considering a mortgage
89foreclosure proceeding uncontested; providing
90requirements for determination of reasonable attorney
91fees for foreclosures of certain residential
92properties; deleting provisions relating to defaults
93in uncontested mortgage foreclosure proceedings and
94liquidated damages; creating s. 702.068, F.S.;
95providing for an election by a foreclosing lender to
96proceed without public sale in certain circumstances;
97providing for notice of such an election; specifying
98the contents of such notice; providing for a demand
99for a public sale by a party; providing for
100disposition of proceeds of a public sale; providing
101for entry of final judgment; providing for redemption
102of property in certain circumstances; providing for
103deeming a debt satisfied in certain circumstances;
104allowing for pursuit of a deficiency if a party
105defendant elects to proceed without a public sale;
106amending s. 702.10, F.S.; revising requirements for
107proceedings for requests for a hearing to show cause
108after a complaint in a foreclosure proceeding has been
109filed which is verified in the form of an affidavit
110sufficient to support a motion for summary judgment;
111providing for a summons; providing for waiver of the
112right to be heard at a hearing to show cause in
113certain circumstances; revising terminology to allow
114for cases in which there are multiple defendants;
115providing for a rebuttable presumption that certain
116properties are homestead properties; providing for
117applicability of other procedures; creating s. 702.11,
118F.S.; providing requirements for reasonable means of
119providing adequate protection under s. 673.3091, F.S.,
120in mortgage foreclosures of certain residential
121properties; providing for liability of persons who
122wrongly claim to be holders of or entitled to enforce
123a lost, stolen, or destroyed note and caused the
124mortgage secured thereby to be foreclosed in certain
125circumstances; creating s. 702.12, F.S.; providing for
126attorney fees as sanctions for raising unsupported
127claims or defenses; providing exceptions; providing
128for damages for delay of litigation; specifying that
129the act does not apply to foreclosures of timeshare
130interests under specified provisions; providing a
131directive to the Division of Statutory Revision;
132providing applicability; providing an effective date.
134Be It Enacted by the Legislature of the State of Florida:
136     Section 1.  This act may be cited as the "Florida Fair
137Foreclosure Act."
138     Section 2.  The public policy in this state is to encourage
139borrowers and lenders to work out alternatives to mortgage
140foreclosure before filing suit and to explore possible
141settlements in mediation. Once suit has been filed, the public
142interest is served by maintaining the strong tradition of
143judicial due process in mortgage foreclosure cases while moving
144mortgage foreclosure cases to final resolution expeditiously in
145order to get real property back into the stream of commerce, but
146to do so consistent with due process and fundamental fairness
147and without impairing the ability of the courts to manage their
148dockets and schedules. This act is an effort to provide
149additional tools to the courts to assist in achieving such a
151     Section 3.  Paragraph (d) of subsection (1) of section
15248.23, Florida Statutes, is amended to read:
153     48.23  Lis pendens.-
154     (1)
155     (d)  Except for the interest of persons in possession or
156easements of use, the recording of such notice of lis pendens,
157provided that during the pendency of the proceeding it has not
158expired pursuant to subsection (2) or been withdrawn or
159discharged, constitutes a bar to the enforcement against the
160property described in the notice of all interests and liens,
161including, but not limited to, federal tax liens and levies,
162unrecorded at the time of recording the notice unless the holder
163of any such unrecorded interest or lien intervenes in such
164proceedings within 30 days after the recording of the notice. If
165the holder of any such unrecorded interest or lien does not
166intervene in the proceedings and if such proceedings are
167prosecuted to a public judicial sale or judicial vesting
168pursuant to s. 702.068 of the property described in the notice,
169the property shall be forever discharged from all such
170unrecorded interests and liens. If the notice of lis pendens
171expires or is withdrawn or discharged, the expiration,
172withdrawal, or discharge of the notice does not affect the
173validity of any unrecorded interest or lien.
174     Section 4.  Subsections (1) and (9) of section 201.02,
175Florida Statutes, are amended to read:
176     201.02  Tax on deeds and other instruments relating to real
177property or interests in real property.-
178     (1)(a)  On deeds, instruments, or writings whereby any
179lands, tenements, or other real property, or any interest
180therein, shall be granted, assigned, transferred, or otherwise
181conveyed to, or vested in, the purchaser or any other person by
182his or her direction, on each $100 of the consideration therefor
183the tax shall be 70 cents. When the full amount of the
184consideration for the execution, assignment, transfer, or
185conveyance is not shown in the face of such deed, instrument,
186document, or writing, the tax shall be at the rate of 70 cents
187for each $100 or fractional part thereof of the consideration
188therefor. For purposes of this section, consideration includes,
189but is not limited to, the money paid or agreed to be paid; the
190discharge of an obligation; and the amount of any mortgage,
191purchase money mortgage lien, or other encumbrance, whether or
192not the underlying indebtedness is assumed. If the consideration
193paid or given in exchange for real property or any interest
194therein includes property other than money, it is presumed that
195the consideration is equal to the fair market value of the real
196property or interest therein.
197     (b)1.  For purposes of this paragraph, the term:
198     a.  "Conduit entity" means a legal entity to which real
199property is conveyed without full consideration by a grantor who
200owns a direct or indirect interest in the entity, or a successor
202     b.  "Full consideration" means the consideration that would
203be paid in an arm's length transaction between unrelated
205     2.  When real property is conveyed to a conduit entity and
206all or a portion of the grantor's direct or indirect ownership
207interest in the conduit entity is subsequently transferred for
208consideration within 3 years after of such conveyance, tax is
209imposed on each such transfer of an interest in the conduit
210entity for consideration at the rate of 70 cents for each $100
211or fraction thereof of the consideration paid or given in
212exchange for the ownership interest in the conduit entity.
213     3.  When an ownership interest is transferred in a conduit
214entity that owns assets other than the real property conveyed to
215the conduit entity, the tax shall be prorated based on the
216percentage the value of such real property represents of the
217total value of all assets owned by the conduit entity.
218     4.  A gift of an ownership interest in a conduit entity is
219not subject to tax to the extent there is no consideration. The
220transfer of shares or similar equity interests in a conduit
221entity which are dealt in or traded on public, regulated
222security exchanges or markets is not subject to tax under this
224     5.  The transfer for purposes of estate planning by a
225natural person of an interest in a conduit entity to an
226irrevocable grantor trust as described in subpart E of part I of
227subchapter J of chapter 1 of subtitle A of the United States
228Internal Revenue Code is not subject to tax under this
230     6.  The purpose of this paragraph is to impose the
231documentary stamp tax on the transfer for consideration of a
232beneficial interest in real property. The provisions of this
233paragraph are to be construed liberally to effectuate this
235     (c)  Conversion or merger of a trust that is not a legal
236entity that owns real property in this state into a legal entity
237shall be treated as a conveyance of the real property for the
238purposes of this section.
239     (d)  Taxes imposed by this subsection shall be paid
240pursuant to s. 201.133 when no document is recorded. If a
241document is recorded, taxes imposed by the paragraph shall be
242paid as required for all other taxable documents that are
244     (9)  A certificate of title filed issued by the clerk of
245court under s. 45.031(6)(5) in a public judicial sale of real
246property under an order or final judgment issued pursuant to a
247foreclosure proceeding is subject to the tax imposed by
248subsection (1). However, the amount of the tax shall be computed
249based solely on the amount of the highest and best bid received
250for the property at the foreclosure sale. A final judgment of
251foreclosure vesting title in a lender under s. 702.068 is
252subject to the tax imposed by subsection (1) based upon a sale
253price of $100. This subsection is intended to clarify existing
254law and shall be applied retroactively.
255     Section 5.  Section 701.04, Florida Statutes, is amended to
257     701.04  Cancellation of mortgages, liens, and judgments.-
258     (1)(a)  Within 15 14 days after the date on which a receipt
259of the written request for an estoppel statement is received
260from of a mortgagor, the holder of an interest in the property
261encumbered by a mortgage, or the designee of either, requesting
262a payoff amount for the mortgage as of a certain date, the
263holder of a mortgage shall provide a written estoppel statement
264executed by an officer or authorized agent of the holder of the
265mortgage deliver to the person making the request mortgagor at
266the a place, fax number, or e-mail address designated in the
267written request. The an estoppel statement shall set letter
268setting forth the following:
269     1.  The unpaid balance of the loan secured by the mortgage,
270including principal, all accrued interest, and any other charges
271properly due under or secured by the mortgage as of the
272requested date certain.
273     2.  and Interest on a per-day basis for the unpaid balance
274for a period of no less than 20 days after the date of delivery
275of the estoppel statement.
276     3.  Certification that the party providing the estoppel
277statement is the holder of the original promissory note secured
278thereby, or is the person or agent of the person entitled to
279enforce the note pursuant to s. 673.3011, as the case may be.
280     4.  A commitment to comply with subsection (3) upon timely
281receipt of the amounts set forth in the estoppel statement.
282     (b)  The mortgagee may not charge a fee for the preparation
283or delivery of the first two estoppel statements requested for
284any one mortgage in any calendar month. This paragraph is not
285intended to limit requirements of federal law.
286     (c)  Subsequent owners of the property encumbered by the
287mortgage, and creditors and lienholders taking an interest in
288the property, for a valuable consideration, and those claiming
289by, through, and under them, may rely on the estoppel statement
290and shall be entitled to the benefits thereof.
291     (d)  Whenever the amount of money due on any mortgage or,
292lien is, or judgment shall be fully paid to the person or party
293entitled to the payment thereof, or all obligations secured by
294the mortgage or lien are otherwise satisfied, the mortgagee,
295creditor, or assignee, or the attorney of record in the case of
296a judgment, to whom such payment has shall have been made or
297satisfaction has been given, shall execute in writing an
298instrument acknowledging satisfaction of the said mortgage,
299lien, or judgment and have the same acknowledged, or proven, and
300duly entered of record in the official records book provided by
301law for such purposes in the proper county. When the person or
302party executing the satisfaction is not shown as the owner of
303the mortgage in the official records, the instrument shall be
304supplemented by a sworn certification that the person executing
305the satisfaction was then in physical possession of the original
306promissory note secured by the mortgage or was then a person
307entitled to enforce the note pursuant to s. 673.3011 and, if the
308latter, shall provide the specific factual basis for such
310     (e)  If the written request for an estoppel statement is
311not from the mortgagor or the designee of the mortgagor, the
312request shall include a copy of the instrument or instruments
313showing the requestor's ownership interest in the property and
314the unpaid balance of the loan secured by the mortgage need not
315be itemized.
316     (2)(a)  Within 60 days after of the date of receipt of the
317full payment of the mortgage in accord with the estoppel
318statement, lien, or judgment, the person required to acknowledge
319satisfaction of the mortgage, lien, or judgment shall send or
320cause to be sent the recorded satisfaction to the maker of the
321promissory note, or such other person as may be designated in
322writing by the payor at or after the final payment, the recorded
323satisfaction and, in the case of the payor of a mortgage note,
325     1.  The original promissory note, marked "paid in full"; or
326     2.  A lost, destroyed, or stolen note affidavit together
327with exhibits in compliance with s. 702.015 and evidence of
328adequate protections as provided in s. 702.11 person who has
329made the full payment. In the case of a civil action arising out
330of the provisions of this section, the prevailing party shall be
331entitled to attorney's fees and costs.
332     (b)  If the documents required by this subsection have not
333been delivered within 60 days, the party who received payment on
334the note or mortgage shall pay to the maker of the promissory
335note or its designee a fee in the amount of $100 per day for
336each day beyond 60 days that the documents have not been
337delivered. The aggregate fees under this paragraph may not
338exceed $5,000.
339     (3)(2)  Whenever a writ of execution has been issued,
340docketed, and indexed with a sheriff and the judgment upon which
341it was issued has been fully paid, it shall be the
342responsibility of the party receiving payment to request, in
343writing, addressed to the sheriff, return of the writ of
344execution as fully satisfied.
345     (4)  A summary procedure pursuant to s. 51.011 may be
346brought to compel compliance with the various obligations and
347duties of this section, and the prevailing party shall recover
348reasonable attorney fees and costs. The court may limit recovery
349of attorney fees and costs when an unreasonable number of
350requests for estoppel statements has been made.
351     Section 6.  Section 701.045, Florida Statutes, is created
352to read:
353     701.045  Cancellation of liens and judgments.-
354     (1)  Whenever the amount of money due on any lien, other
355than a mortgage, or judgment is fully paid to the person or
356party entitled to such payment, the creditor or assignee, or the
357attorney of record in the case of a judgment, to whom such
358payment has been made shall execute in writing an instrument
359acknowledging satisfaction of the lien or judgment and have it
360acknowledged, or proven, and duly entered of record in the
361official records in the proper county. Within 60 days after the
362date of receipt of the full payment of the lien or judgment, the
363person required to acknowledge satisfaction of the lien or
364judgment shall send or cause to be sent the recorded
365satisfaction to the person who has made the full payment. In the
366case of a civil action arising out of this section, the
367prevailing party shall be entitled to attorney fees and costs.
368     (2)  Whenever a writ of execution has been issued,
369docketed, and indexed with a sheriff and the judgment upon which
370it was issued has been fully paid, it shall be the
371responsibility of the party receiving payment to request, in
372writing and addressed to the sheriff, return of the writ of
373execution as fully satisfied.
374     (3)  The party receiving full payment of any judgment shall
375also comply with s. 55.206, as appropriate.
376     Section 7.  Section 702.015, Florida Statutes, is created
377to read:
378     702.015  Elements of complaint; lost, destroyed, or stolen
379note affidavit.-Any complaint which seeks to foreclose a lien on
380real property which secures a promissory note must contain
381affirmative allegations expressly made by the plaintiff at the
382time the proceeding is commenced that the plaintiff is the
383holder of the original note secured by the mortgage or allege
384with specificity the factual basis by which the plaintiff is a
385person entitled to enforce the note under s. 673.3011. When a
386party has been delegated the authority to institute a mortgage
387foreclosure action on behalf of the holder of the note, the
388complaint shall describe the authority of the plaintiff and
389identify, with specificity, the document that grants the
390plaintiff the authority to act on behalf of the holder of the
392     (1)  Unless the complaint includes a count to enforce a
393lost, destroyed, or stolen instrument, the plaintiff shall cause
394to be filed with the court, contemporaneously with and as a
395condition precedent to the filing of the complaint for
396foreclosure, either:
397     (a)  The original promissory note; or
398     (b)  Certification, under penalty of perjury, that the
399plaintiff is in physical possession of the original promissory
400note. Such certification must set forth the physical location of
401the note, the name and title of the individual giving the
402certification, and the name of the person who personally
403verified such physical possession and the time and date on which
404possession was verified. Correct copies of the note and all
405allonges thereto shall be attached to the certification. The
406original note shall be filed with the court prior to the entry
407of any judgment of foreclosure or judgment on such note.
408     (2)  When the complaint includes a count to enforce a lost,
409destroyed, or stolen instrument, an affidavit executed under
410penalty of perjury shall be attached to the complaint. The
411affidavit shall:
412     (a)  Detail a clear chain of all assignments for the
413promissory note that is the subject of the action.
414     (b)  Set forth facts showing that the plaintiff is entitled
415to enforce a lost, destroyed, or stolen instrument pursuant to
416s. 673.3091.
417     (c)  Include as exhibits to the affidavit such copies of
418the note and allonges thereto, assignments of mortgage, audit
419reports showing physical receipt of the original note, or other
420evidence of the acquisition, ownership, and possession of the
421note as may be available to the plaintiff.
422     (3)  Following dismissal of the foreclosure case without
423prejudice and without completion of the foreclosure, and upon
424request of the plaintiff, the clerk may return the original
425promissory note to the plaintiff without need for further order
426of the court.
427     Section 8.  Section 702.035, Florida Statutes, is amended
428to read:
429     702.035  Legal notice concerning foreclosure proceedings.-
430     (1)  The foreclosing party only in a mortgage foreclosure
431action involving an occupied residential real property,
432including individual units of condominiums and cooperatives,
433designated principally for occupation by from one to four
434families, but not including an interest in a timeshare property
435the foreclosure of which is governed by part III of chapter 721,
436shall provide notice substantially in accordance with this
437section to:
438     (a)  Any mortgagor having an interest in the property and
439the record title owners of the property; and
440     (b)  All tenants of a dwelling unit in the property if the
441foreclosing party is seeking to foreclose the interest of the
443     (2)  The notice required under paragraph (1)(a) shall:
444     (a)  Be delivered with the summons and complaint. Such
445notice shall be in 14-point boldfaced type and the title of the
446notice shall be in 20-point boldfaced type. The notice shall be
447on its own page.
448     (b)  Appear as follows:
452If you fail to respond to the summons and complaint in
453this foreclosure action, you may lose your home.
454Please read the summons and complaint carefully. You
455should immediately contact an attorney or your local
456legal aid office to obtain advice on how to protect
457yourself. Sending a payment to your mortgage company
458will not stop this foreclosure action.
471The state encourages you to become informed about your
472options in foreclosure. You should contact a licensed
473Florida attorney to assist you. If you cannot afford
474an attorney, your local legal aid office may be able
475to assist you at little or no cost to you. There are
476also government agencies and nonprofit organizations
477that you may contact for cost-free information about
478possible options, including trying to work with your
479lender during this process.
482Be careful of people who approach you with offers to
483help you keep your home. There are individuals who
484watch for notices of foreclosure actions in order to
485unfairly profit from a homeowner's distress. You
486should be extremely careful about any such promises
487and any suggestions that you pay them a fee or deed
488over your property. State law requires any nonattorney
489offering such services for profit to enter into a
490contract which fully describes the services they will
491perform and fees they will charge, and which prohibits
492them from taking any money from you until they have
493completed all such promised services.
495     (3)  The notice to any tenant required under paragraph
496(1)(b) shall:
497     (a)  Be delivered with the summons and complaint. The
498foreclosing party shall provide its name, address, and telephone
499number on the notice. The title of the notice shall be in 14-
500point boldfaced type. The notice shall be on its own page.
501     (b)  Appear substantially as follows:
505Florida law requires that we provide you with this
506notice about the foreclosure process. Please read it
509We, ...(name of foreclosing party)..., are the
510foreclosing party and are located at ...(foreclosing
511party's address).... We can be reached at
512...(foreclosing party's telephone number)....
514The property you are renting is the subject of a
515foreclosure proceeding. You should file an answer to
516this summons and complaint and deliver a copy of the
517answer to the attorney for the plaintiff and file the
518original with the court within 20 days after being
519served. There is no charge for filing an answer. A
520telephone call or an e-mail to the attorney for the
521plaintiff will not satisfy the requirement of filing
522an answer. If you have a written lease and are not the
523owner of the residence, and the lease requires payment
524of rent that at the time it was entered into was not
525substantially less than the fair market rent for the
526property, you may be entitled to remain in occupancy
527under the federal Protecting Tenants at Foreclosure
528Act of 2009, as amended. If you do not have a written
529lease, under the same federal law you may be entitled
530to remain in your home until 90 days after the person
531or entity that acquires title to the property provides
532you with a notice. If you are a subsidized tenant
533under federal, state, or local law or if you are a
534tenant subject to rent control, rent stabilization, or
535a federal statutory scheme, you may have other rights.
536If the federal Protecting Tenants at Foreclosure Act
537of 2009, as amended, and these other laws do not apply
538to your situation, you may be required to vacate the
539property upon completion of the foreclosure. The
540filing of a foreclosure action does not automatically
541cease your obligation to pay rent to your landlord.
542You should contact a licensed Florida attorney to
543understand your rights. If you cannot afford an
544attorney, your local legal aid office may be able to
545assist you at little or no cost to you.
547     (4)  Only a single notice is required under this section
548for any party defendant.
549     (5)  Whenever a legal advertisement, publication, or notice
550relating to a foreclosure proceeding is required to be placed in
551a newspaper, it is the responsibility of the petitioner or
552petitioner's attorney to place such advertisement, publication,
553or notice. For counties having with more than 1 million total
554population as reflected in the 2000 Official Decennial Census of
555the United States Census Bureau as shown on the official website
556of the United States Census Bureau, any notice of publication
557required by this section shall be deemed to have been published
558in accordance with the law if the notice is published in a
559newspaper that has been entered as a periodical matter at a post
560office in the county in which the newspaper is published, is
561published a minimum of 5 days a week, exclusive of legal
562holidays, and has been in existence and published a minimum of 5
563days a week, exclusive of legal holidays, for 1 year or is a
564direct successor to a newspaper that has been in existence for 1
565year that has been published a minimum of 5 days a week,
566exclusive of legal holidays. The advertisement, publication, or
567notice shall be placed directly by the attorney for the
568petitioner, by the petitioner if acting pro se, or by the clerk
569of the court. Only the actual costs charged by the newspaper for
570the advertisement, publication, or notice may be charged as
571costs in the action.
572     Section 9.  Section 702.036, Florida Statutes, is created
573to read:
574     702.036  Finality of mortgage foreclosure judgment.-
575     (1)(a)  In any action or proceeding in which a party seeks
576to set aside, invalidate, or challenge the validity of a final
577judgment of foreclosure of a mortgage or to establish or
578reestablish a lien or encumbrance on the property in abrogation
579of the final judgment of foreclosure of a mortgage, the court
580shall treat such request solely as a claim for monetary damages
581and may not grant relief that adversely affects the quality or
582character of the title to the property, if:
583     1.  A final judgment of foreclosure of a mortgage was
584entered as to a property;
585     2.  All applicable appeals periods have run as to the final
586judgment of foreclosure of a mortgage with no appeals having
587been taken, or any appeals having been finally resolved;
588     3.  The property has been acquired for value, by a person
589not affiliated with the foreclosing lender, at a time in which
590no lis pendens regarding the suit to set aside, invalidate, or
591challenge the foreclosure appears in the official records of the
592county where the property was located; and
593     4.  The party seeking relief from the final judgment of
594foreclosure of a mortgage was properly served in the foreclosure
595lawsuit as provided in chapter 48 or chapter 49.
596     (b)  This subsection does not limit the right to pursue any
597other relief to which a person may be entitled, including, but
598not limited to, compensatory damages, punitive damages,
599statutory damages, consequential damages, injunctive relief, or
600fees and costs, which does not adversely affect the ownership of
601the title to the property as vested in the unaffiliated
602purchaser for value.
603     (2)  For purposes of this section, the following, without
604limitation, shall be considered persons affiliated with the
605foreclosing lender:
606     (a)  The foreclosing lender or any loan servicer for the
607loan being foreclosed;
608     (b)  Any past or present owner or holder of the loan being
610     (c)  Any maintenance company, holding company, foreclosure
611services company, or law firm under contract to any entity
612listed in paragraph (a), paragraph (b), or this paragraph, with
613regard to the loan being foreclosed; or
614     (d)  Any parent, entity, subsidiary, or other person who
615directly, or indirectly through one or more intermediaries,
616controls or is controlled by, or is under common control with,
617any entity listed in paragraph (a), paragraph (b), or paragraph
619     (3)  After foreclosure of a mortgage based upon the
620enforcement of a lost, destroyed, or stolen note, a person who
621is not a party to the underlying foreclosure action but who
622claims to be the actual holder of the promissory note secured by
623the foreclosed mortgage shall have no claim against the
624foreclosed property after it has been conveyed for valuable
625consideration to a person not affiliated with the foreclosing
626lender. This section does not preclude the actual holder of the
627note from pursuing recovery from any adequate protection given
628pursuant to s. 673.3091 or from the party who wrongfully claimed
629to be the owner or holder of the promissory note, the maker of
630the note, or any other person against whom it may have a claim
631relating to the note.
632     Section 10.  Section 702.04, Florida Statutes, is amended
633to read:
634     702.04  Mortgaged Lands in different counties.-When a
635mortgage or other lien includes lands, railroad track, right-of-
636way, or terminal facilities and station grounds, lying in two or
637more counties, it may be foreclosed in any one of those said
638counties, and all proceedings shall be had in that county as if
639all the mortgaged land, railroad track, right-of-way, or
640terminal facilities and station grounds lay therein, except that
641any notice of the sale must be published in every county wherein
642any of the lands, railroad track, right-of-way, or terminal
643facilities and station grounds to be sold lie. After final
644disposition of the suit, the clerk of the circuit court shall
645prepare and forward a certified copy of the decree of
646foreclosure, and the certificates of title, if any, and sale and
647of the decree of confirmation of sale to the clerk of the
648circuit court of every county wherein any of the mortgaged
649lands, railroad tracks, right-of-way, or terminal facilities and
650station grounds lie, to be recorded in the official records
651foreign judgment book of each such county, and the costs of such
652copies and of the recording record thereof shall be taxed as
653costs in the cause.
654     Section 11.  Section 702.06, Florida Statutes, is amended
655to read:
656     702.06  Deficiency decree; common-law suit to recover
658     (1)  In all suits for the foreclosure of mortgages
659heretofore or hereafter executed, the entry of a deficiency
660decree for any portion of a deficiency, should one exist, shall
661be within the sound judicial discretion of the court, but the
662complainant shall also have the right to sue at common law to
663recover such deficiency, unless the court in the foreclosure
664action has granted or denied a deficiency judgment provided no
665suit at law to recover such deficiency shall be maintained
666against the original mortgagor in cases where the mortgage is
667for the purchase price of the property involved and where the
668original mortgagee becomes the purchaser thereof at foreclosure
669sale and also is granted a deficiency decree against the
670original mortgagor.
671     (2)(a)  In respect to an owner-occupied one-family to four-
672family dwelling unit, the party to whom a deficiency is owing
673may move for the entry of a deficiency judgment in the
674foreclosure action or file a separate action for collection of
675the deficiency, no later than 1 year after the property has
676vested in the foreclosing lender or other purchaser at the
677foreclosure sale, or October 1, 2013, whichever is later.
678     (b)  If a deficiency is not pursued within the time periods
679specified in this section, the vesting of the property pursuant
680to s. 702.068 or proceeds of the sale, regardless of the amount,
681shall be deemed to be in full satisfaction of the mortgage debt
682and a right to recover any deficiency in any subsequent action
683or proceeding shall be extinguished.
684     (c)  This subsection does not restrict the authority of the
685court to determine the entitlement to any assets held by any
686receiver or any assignee of the rents and profits of the
688     Section 12.  Section 702.062, Florida Statutes, is created
689to read:
690     702.062  Notice of extensions; defaults; case management
692     (1)  In any mortgage foreclosure proceeding, other than a
693proceeding seeking foreclosure of a timeshare interest under
694part III of chapter 721, the plaintiff's counsel shall cause to
695be filed with the clerk of the court a notice of any extensions
696of time for a party to respond to an initial complaint which may
697be granted. Such notice shall be filed within the later of 5
698days after the granting of such extension or 60 days after the
699effective date of this act and may be made by copy of the letter
700confirming the extension. This requirement is not intended to
701discourage any party from requesting or granting such extensions
702of time.
703     (2)  Any party may notify the court and all parties as to
704any foreclosure proceeding in which the file indicates:
705     (a)  All parties defendant have been served personally by
706substituted service or by publication; and
707     (b)  No party defendant has filed an answer or other
708response denying, contesting, or asserting defenses to the
709plaintiff's entitlement to the foreclosure, and the time has run
710for the entry of defaults against all nonresponding parties
712     (3)  The court, on its own motion or motion of any party,
713may enter defaults against nonresponding parties in accordance
714with the Florida Rules of Civil Procedure and shall direct the
715plaintiff in the foreclosure action to file all affidavits,
716certifications, and proofs necessary or appropriate for the
717entry of a summary judgment of foreclosure within a time certain
718or show cause why such a filing should not be made. The filing
719of these materials shall be construed as a motion for summary
720judgment, and the court may thereafter enter final summary
721judgment or set the case for trial in accord with its sound
722judicial discretion. This subsection does not restrict the
723authority of the court to set aside a default or a judgment
724granted thereon pursuant to the Florida Rules of Civil
726     (4)  After all parties have been served and not earlier
727than 48 days after the filing of the foreclosure case, any party
728may request a case management conference at which the court
729shall set definite timetables for moving the case forward.
730     (5)  The court may grant extensions or stays in the
731proceedings on a showing that the plaintiff and property owner
732defendant are engaged in mediation or good faith negotiations
733with regard to a loan modification or other settlement or
734otherwise as justice may require. The court may condition an
735extension or stay on the property owner or the lender, if it so
736chooses, paying any condominium or homeowners' association
737assessments coming due after the date of the extension or stay
738and keeping such assessments paid current through the conclusion
739of the foreclosure action.
740     Section 13.  Section 702.065, Florida Statutes, is amended
741to read:
742     702.065  Final judgment in uncontested mortgage foreclosure
743proceedings where deficiency judgment waived; attorney
744attorney's fees when default judgment entered.-
745     (1)  In uncontested mortgage foreclosure proceedings in
746which the mortgagee waives the right to recoup any deficiency
747judgment, the court shall enter final judgment within 90 days
748after from the date of the close of pleadings. For the purposes
749of this subsection, a mortgage foreclosure proceeding is
750uncontested if a default has been entered against all defendants
751or no response an answer not contesting the foreclosure has been
752timely filed or a default judgment has been entered by the
754     (2)  In a mortgage foreclosure proceeding, when a default
755judgment has been entered against the mortgagor and the note or
756mortgage provides for the award of reasonable attorney
757attorney's fees, it is not necessary for the court to hold a
758hearing or adjudge the requested attorney attorney's fees to be
759reasonable if the fees do not exceed the greater of 1.5 3
760percent of the principal amount owed at the time of filing the
761complaint or $1,500, even if the note or mortgage does not
762specify the percentage of the original amount that would be paid
763as liquidated damages. Such fees constitute liquidated damages
764in any proceeding to enforce the note or mortgage. This section
765does not preclude a challenge to the reasonableness of the
766attorney attorney's fees.
767     Section 14.  Section 702.068, Florida Statutes, is created
768to read:
769     702.068  Election by foreclosing lender to proceed without
770public sale.-
771     (1)  When the amount of principal and interest, exclusive
772of fees and costs, owed to a foreclosing lender equals or
773exceeds 120 percent of the just value of the property subject to
774foreclosure, as determined by the county property appraiser in
775the most recent certified tax roll, the foreclosing lender may
776elect to foreclose without a public sale of the property under
777chapter 45. Except as otherwise provided in this subsection,
778nothing in this section alters any aspect of the judicial
779foreclosure proceeding; the rights, remedies, and defenses
780available to the parties; the court rules and procedures to be
781followed; or the authority of the court to supervise and manage
782the foreclosure case.
783     (2)  A plaintiff electing to proceed without a public sale
784may include the request to proceed under this section in any
785complaint or amended complaint filed, or the plaintiff or any
786other party may file a motion to proceed under this section at
787any time prior to the entry of a final judgment of foreclosure.
788     (3)  Upon making the election to foreclose without a public
789sale, the party making the election shall cause notices to be
790sent to each party, other than the party sending the notice, as
792     (a)  If the election to proceed without a public sale is
793made in the complaint, the notice shall be served together with
794the complaint on the defendants as provided in chapter 48 or
795chapter 49. If the election is made after the initial service of
796the complaint, the notice shall be served on any party against
797whom a default has been entered as provided in chapter 48 or
798chapter 49 and served on other parties as provided in the
799Florida Rules of Civil Procedure. If service is by publication,
800the published notice shall indicate that "the plaintiff has
801elected to proceed without a public sale as provided under
802section 702.068, Florida Statutes."
803     (b)  The notice provided to the owners of the property,
804tenants, holders of subordinate liens and other interests in the
805property, and any other defendants shall be on its own page, in
80614-point boldfaced type and the title of the notice shall be in
80720-point boldfaced type, and in substantially the following
812     Florida Law requires that we provide you notice
813that this foreclosure may proceed without a public
814sale. Please read it carefully.
816     You have been identified as the owner of, the
817holder of a mortgage or lien on, or otherwise having
818an interest in property located at ...(property
819address)... which is subject to foreclosure. You are
820hereby notified that ...(name and address of
821plaintiff)... has filed a foreclosure lawsuit with
822regard to the property and has elected to proceed
823without a public sale pursuant to section 702.068,
824Florida Statutes. Under this provision, after the
825entry of a final judgment of foreclosure the property
826will vest automatically in the foreclosing lender.
827There will not be a public sale of the property, and
828you may lose your equity in this property or any
829equity that would be available to pay subordinate
830liens you may hold.
831     At any time prior to the entry of a final
832judgment of foreclosure, you may demand a traditional
833public sale in order to protect any equity in the
834property, but anyone making such a demand will
835initially be responsible for paying $450 towards the
836costs of advertising, notice, and other expenses
837relating to that public sale. Under certain
838circumstances, those costs may be repaid from the
839proceeds of the public sale.
840     NOTE: The right to demand a public sale at any
841time prior to the entry of a final judgment does not
842extend the 20-day period to initially respond to the
844     If you have any questions about this notice or
845the lawsuit, you should immediately consult a licensed
846Florida attorney.
848     (c)  The notice in paragraph (b) is informational only.
849Nonmaterial defects in the content of this notice do not
850invalidate any title vested without a public sale under this
851section, as long as proper service has been obtained.
852     (d)  The election to proceed without a public sale and the
853delivery of notices may occur not later than 15 days before the
854entry of a final judgment of foreclosure.
855     (4)  At any time before the entry of a final order of
856foreclosure without a public sale, any party may demand a public
857sale by filing a demand for such with the clerk of the court. If
858a public sale is demanded, the court shall proceed with the
859foreclosure and sale under other applicable law. The party
860demanding a public sale under this section shall
861contemporaneously deposit with the clerk $450 conditioned to pay
862all costs of noticing and advertising the public sale and any
863clerk's fee or other service fees charged in connection with the
864public sale.
865     (a)  If the price returned at the public sale exceeds the
866amount determined in the final judgment to be owed under the
867mortgage to the foreclosing lender, including principal, accrued
868interest, expenses, attorney fees and costs, and the costs of
869noticing and advertising the sale, any clerk's fees or other
870service fees shall be taxed as costs and reimbursed to the party
871making the cost deposit, up to the amount of such deposit.
872     (b)  If the price returned at the public sale does not
873exceed the amount owed under the mortgage to the foreclosing
874lender, the cost deposit shall be applied to repay the
875foreclosing lender for the actual costs of noticing and
876advertising the public sale and any clerk's fees and other
877service fees, with any excess being returned to the party making
878the cost deposit.
879     (5)  Upon finding that all requirements of this section and
880conditions for the granting of a final judgment of foreclosure
881have been satisfied, and no public sale has been demanded, the
882court may, as is consistent with justice and sound judicial
883discretion, enter a final judgment in foreclosure.
884     (a)  The final judgment shall take effect no sooner than 10
885days after the entry thereof and, upon the recording of the
886certificate of title issued pursuant to paragraph (d), shall
887vest all of the owners' right, title, and interest in and to the
888property subject to foreclosure in the plaintiff or plaintiff's
889designee as identified in the final judgment, and, if so found
890by the court, that each defendant and all persons claiming under
891or against each defendant since the filing of the notice of lis
892pendens shall be foreclosed of all estate or claim in the
893property, except as to claims or rights under chapter 718 or
894chapter 720, if any.
895     (b)  The owner or any party defendant may redeem the
896property at any time prior to the final judgment becoming
897effective. Upon redemption:
898     1.  The clerk shall cause a notice of redemption to be
899filed in the court records and in the official records and to
900cause an order, if any, approving or ratifying the redemption to
901be filed in the official records; and
902     2.  The plaintiff shall cause the mortgage to be satisfied
903of record.
904     (c)  The final judgment shall recite the just value of the
905property as determined by the county property appraiser and
906include a finding that the principal and accrued interest owed
907to the foreclosing lender equals or exceeds 120 percent of the
908just value.
909     (d)  After the time provided in the final judgment for
910redemption, and provided redemption has not occurred, the clerk
911shall issue a certificate of title vesting title to the property
912in the foreclosing plaintiff or its designee.
913     (6)  When the foreclosing lender elects to foreclose
914without a public sale, upon entry of a judgment and issuing the
915certificate of title under this section, the debt that was
916secured by the foreclosed mortgage shall be deemed satisfied and
917any right to pursue a deficiency decree or other action to
918enforce such note is waived. When a party defendant elects to
919proceed without a public sale, the plaintiff may pursue a
920deficiency if and as otherwise permitted by law.
921     Section 15.  Section 702.10, Florida Statutes, is amended
922to read:
923     702.10  Order to Show cause; entry of final judgment of
924foreclosure; payment during foreclosure.-
925     (1)  After a complaint in a foreclosure proceeding has been
926filed which is verified in the form of an affidavit sufficient
927to support a motion for summary judgment, the plaintiff
928mortgagee may request a hearing to show cause an order to show
929cause for the entry of final judgment and the court shall
930immediately review the complaint. Upon such request, the clerk
931If, upon examination of the complaint, the court finds that the
932complaint is verified and alleges a cause of action to foreclose
933on real property, the court shall promptly issue a summons an
934order directed to each the defendant to show cause why a final
935judgment 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
938show cause. However, the date for the hearing may not occur be
939set sooner than the later of 20 days after the service of the
940summons or 45 days after the service of the complaint order.
941When service is obtained by publication, the date for the
942hearing may not be set sooner than 55 30 days after the first
943publication. The hearing must be held within 60 days after the
944date of service. Failure to hold the hearing within such time
945does not affect the validity of the order to show cause or the
946jurisdiction of the court to issue subsequent orders.
947     2.  Direct the time within which service of the order to
948show 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
950responsive pleading verified or sworn answer at or before the
951hearing to show cause may constitute constitutes cause for the
952court not to enter the attached final judgment.
953     3.4.  State that any the defendant has the right to file
954affidavits or other papers at or before the time of the hearing
955to show cause and may appear personally or by way of an attorney
956at the hearing.
957     4.5.  State that, if any the defendant files defenses by a
958motion, the hearing time may be used to hear the defendant's
960     5.6.  State that, if any the defendant fails to appear at
961the hearing to show cause or fails to file a response defenses
962by a motion or by a verified or sworn answer or files an answer
963not contesting the foreclosure, the defendant shall may be
964deemed considered to have waived the right to a hearing and in
965such case the court shall, unless the record shows that the
966relief is unavailable, may enter a final judgment of foreclosure
967ordering the clerk of the court to conduct a foreclosure sale.
968     6.7.  State that if the mortgage provides for reasonable
969attorney attorney's fees and the requested attorney attorney's
970fees do not exceed the greater of 1.5 3 percent of the principal
971amount owed at the time of filing the complaint or $1,500, it is
972unnecessary for the court to hold a hearing or adjudge the
973requested attorney attorney's fees to be reasonable.
974     7.8.  Attach the proposed final judgment of foreclosure the
975plaintiff requests the court to will enter, if the defendant
976waives the right to be heard at the hearing on the order to show
978     8.9.  Require the plaintiff mortgagee to serve a copy of
979the summons order to show cause on each defendant the mortgagor
980in the following manner:
981     a.  If a defendant the mortgagor has been served with the
982complaint and original process, service of the summons to show
983cause on that defendant order may be made in the manner provided
984in the Florida Rules of Civil Procedure.
985     b.  If a defendant the mortgagor has not been served with
986the complaint and original process, the summons order to show
987cause, together with the summons and a copy of the complaint,
988shall be served on the defendant mortgagor in the same manner as
989provided by law for original process.
991Any final judgment of foreclosure entered under this subsection
992is for in rem relief only. Nothing in this subsection shall
993preclude the entry of a deficiency judgment where otherwise
994allowed by law.
995     (b)  The right to be heard at the hearing to show cause is
996waived if a the defendant, after being served as provided by law
997with a an order to show cause summons, fails to file a response
998contesting the foreclosure engages in conduct that clearly shows
999that the defendant has relinquished the right to be heard on
1000that order. The defendant's failure to file defenses by a motion
1001or by a sworn or verified answer or fails to appear at the
1002hearing duly scheduled on the order to show cause summons
1003presumptively constitutes conduct that clearly shows that the
1004defendant has relinquished the right to be heard. If a defendant
1005files a response contesting the foreclosure defenses by a motion
1006or by a verified or sworn answer at or before the hearing, such
1007response may constitute action constitutes cause upon the
1008determination of the court as set forth in paragraph (d) and may
1009preclude precludes the entry of a final judgment at the hearing
1010to show cause.
1011     (c)  In a mortgage foreclosure proceeding, when a default
1012judgment has been entered against the mortgagor and the note or
1013mortgage provides for the award of reasonable attorney
1014attorney's fees, it is unnecessary for the court to hold a
1015hearing or adjudge the requested attorney attorney's fees to be
1016reasonable if the fees do not exceed the greater of 1.5 3
1017percent of the principal amount owed on the note or mortgage at
1018the time of filing of the complaint or $1,500, even if the note
1019or mortgage does not specify the percentage of the original
1020amount that would be paid as liquidated damages.
1021     (d)  If the court finds that each the defendant has waived
1022the right to be heard as provided in paragraph (b), the court
1023shall promptly enter a final judgment of foreclosure without the
1024need for a further hearing upon either the filing with the court
1025of the original note or satisfaction of the conditions for
1026establishment of the lost note pursuant to law. If the court
1027finds that a the defendant has not waived the right to be heard
1028on the order to show cause, the court shall then determine
1029whether there is cause not to enter a final judgment of
1030foreclosure. If the court finds that a the defendant has not
1031shown cause, the court shall promptly enter a judgment of
1033     (2)  In an action for a mortgage foreclosure, on properties
1034other than a homestead other than residential real estate, the
1035mortgagee may request that the court enter an order directing
1036the mortgagor defendant to show cause why an order to make
1037payments during the pendency of the foreclosure proceedings or
1038an 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
1041cause. However, the date for the hearing shall not be set sooner
1042than 20 days after the service of the order. Where service is
1043obtained by publication, the date for the hearing shall not be
1044set sooner than 30 days after the first publication.
1045     2.  Direct the time within which service of the order to
1046show cause and the complaint shall be made upon each the
1048     3.  State that a the defendant has the right to file
1049affidavits or other papers at the time of the hearing and may
1050appear personally or by way of an attorney at the hearing.
1051     4.  State that, if a the defendant fails to appear at the
1052hearing to show cause and fails to file defenses by a motion or
1053by a verified or sworn answer, the defendant may be deemed to
1054have waived the right to a hearing and in such case the court
1055may enter an order to make payment or vacate the premises.
1056     5.  Require the mortgagee to serve a copy of the order to
1057show cause on the mortgagor in the following manner:
1058     a.  If the mortgagor has been served with the complaint and
1059original process, service of the order may be made in the manner
1060provided in the Florida Rules of Civil Procedure.
1061     b.  If the mortgagor has not been served with the complaint
1062and original process, the order to show cause, together with the
1063summons and a copy of the complaint, shall be served on the
1064mortgagor in the same manner as provided by law for original
1066     (b)  The right of a defendant to be heard at the hearing to
1067show cause is waived if the defendant, after being served as
1068provided by law with an order to show cause, engages in conduct
1069that clearly shows that the defendant has relinquished the right
1070to be heard on that order. A The defendant's failure to file
1071defenses by a motion or by a sworn or verified answer or to
1072appear at the hearing duly scheduled on the order to show cause
1073presumptively constitutes conduct that clearly shows that the
1074defendant has relinquished the right to be heard.
1075     (c)  If the court finds that a the defendant has waived the
1076right to be heard as provided in paragraph (b), the court may
1077promptly enter an order requiring payment in the amount provided
1078in paragraph (f) or an order to vacate.
1079     (d)  If the court finds that the mortgagor has not waived
1080the right to be heard on the order to show cause, the court
1081shall, at the hearing on the order to show cause, consider the
1082affidavits and other showings made by the parties appearing and
1083make a determination of the probable validity of the underlying
1084claim alleged against the mortgagor and the mortgagor's
1085defenses. If the court determines that the mortgagee is likely
1086to prevail in the foreclosure action, the court shall enter an
1087order requiring the mortgagor to make the payment described in
1088paragraph (e) to the mortgagee and provide for a remedy as
1089described in paragraph (f). However, the order shall be stayed
1090pending final adjudication of the claims of the parties if the
1091mortgagor files with the court a written undertaking executed by
1092a surety approved by the court in an amount equal to the unpaid
1093balance of the mortgage on the property, including all
1094principal, interest, unpaid taxes, and insurance premiums paid
1095by the mortgagee.
1096     (e)  In the event the court enters an order requiring the
1097mortgagor to make payments to the mortgagee, payments shall be
1098payable at such intervals and in such amounts provided for in
1099the mortgage instrument before acceleration or maturity. The
1100obligation to make payments pursuant to any order entered under
1101this subsection shall commence from the date of the motion filed
1102hereunder. The order shall be served upon the mortgagor no later
1103than 20 days before the date specified for the first payment.
1104The order may permit, but shall not require the mortgagee to
1105take all appropriate steps to secure the premises during the
1106pendency of the foreclosure action.
1107     (f)  In the event the court enters an order requiring
1108payments the order shall also provide that the mortgagee shall
1109be entitled to possession of the premises upon the failure of
1110the mortgagor to make the payment required in the order unless
1111at the hearing on the order to show cause the court finds good
1112cause to order some other method of enforcement of its order.
1113     (g)  All amounts paid pursuant to this section shall be
1114credited against the mortgage obligation in accordance with the
1115terms of the loan documents, provided, however, that any
1116payments made under this section shall not constitute a cure of
1117any default or a waiver or any other defense to the mortgage
1118foreclosure action.
1119     (h)  Upon the filing of an affidavit with the clerk that
1120the premises have not been vacated pursuant to the court order,
1121the clerk shall issue to the sheriff a writ for possession which
1122shall be governed by the provisions of s. 83.62.
1123     (i)  For purposes of this section, there is a rebuttable
1124presumption that a residential property for which a homestead
1125exemption for taxation was granted according to the certified
1126rolls of the latest assessment by the county property appraiser,
1127before the filing of the foreclosure action, is a homestead
1129     (3)  This section does not supersede or limit other
1130procedures adopted by the court, including, but not limited to,
1131mandatory mediation and alternative dispute resolution
1133     Section 16.  Section 702.11, Florida Statutes, is created
1134to read:
1135     702.11  Adequate protections for lost, destroyed, or stolen
1136notes in mortgage foreclosure.-
1137     (1)  In connection with the mortgage foreclosure of a one-
1138family to four-family residential property, the following
1139constitute reasonable means of providing adequate protection
1140under s. 673.3091:
1141     (a)  A written indemnification agreement by a person
1142reasonably believed sufficiently solvent to honor such an
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
1147court; or
1148     (e)  Such other security as the court may deem appropriate
1149under the circumstances.
1151Any security given shall be on terms and in amounts set by the
1152court, for a time period through the running of the statute of
1153limitations for enforcement of the underlying note, and
1154conditioned to indemnify and hold harmless the maker of the note
1155against any loss or damage, including principal, interest, and
1156attorney fees and costs, that might occur by reason of a claim
1157by another person to enforce the note.
1158     (2)  Any person who wrongly claimed to be the holder of or
1159pursuant to s. 673.3011 to be entitled to enforce a lost,
1160stolen, or destroyed note and caused the mortgage secured
1161thereby to be foreclosed shall be liable to the actual holder of
1162the note, without limitation to any adequate protections given,
1163for actual damages suffered together with attorney fees and
1164costs of the actual holder of the note in enforcing rights under
1165this subsection.
1166     (a)  The actual holder of the note is not required to
1167pursue recovery against the maker of the note or any guarantor
1168thereof as a condition precedent to pursuing remedies under this
1170     (b)  This subsection does not limit or restrict the ability
1171of the actual holder of the note to pursue any other claims or
1172remedies it may have against the maker, the person who wrongly
1173claimed to be the holder, or any person who facilitated or
1174participated in the claim to the note or enforcement thereof.
1175     Section 17.  Section 702.12, Florida Statutes, is created
1176to read:
1177     702.12  Attorney fee as sanctions for raising unsupported
1178claims or defenses; exceptions; service of motions; damages for
1179delay of litigation.-
1180     (1)  In any mortgage foreclosure action, upon the court's
1181initiative or motion of any party, the court shall award a
1182reasonable attorney fee, including prejudgment interest, to be
1183paid to the prevailing party in equal amounts by the losing
1184party and the losing party's attorney on any claim or defense at
1185any time during a civil proceeding or action in which the court
1186finds that the losing party or the losing party's attorney knew
1187or should have known that a claim or defense when initially
1188presented to the court or at any time before trial:
1189     (a)  Was not supported by the material facts necessary to
1190establish the claim or defense; or
1191     (b)  Would not be supported by the application of then-
1192existing law to those material facts.
1193     (2)  At any time in any civil proceeding or action in which
1194the moving party proves by a preponderance of the evidence that
1195any action taken by the opposing party, including, but not
1196limited to, the filing of any pleading or part thereof, the
1197assertion of or response to any discovery demand, the assertion
1198of any claim or defense, or the response to any request by any
1199other party, was taken primarily for the purpose of unreasonable
1200delay, the court shall award damages to the moving party for its
1201reasonable expenses incurred in obtaining the order, which may
1202include attorney fees, and other loss resulting from the
1203improper delay.
1204     (3)  Notwithstanding subsections (1) and (2), monetary
1205sanctions may not be awarded:
1206     (a)  Under paragraph (1)(b) if the court determines that
1207the claim or defense was initially presented to the court as a
1208good faith argument for the extension, modification, or reversal
1209of existing law or the establishment of new law, as it applied
1210to the material facts, with a reasonable expectation of success.
1211     (b)  Under paragraph (1)(a) or paragraph (1)(b) against the
1212losing party's attorney if he or she has acted in good faith,
1213based on the representations of his or her client as to the
1214existence 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
1217section must be served but may not be filed with or presented to
1218the court unless, within 21 days after service of the motion,
1219the challenged paper, claim, defense, contention, allegation, or
1220denial is not withdrawn or appropriately corrected.
1221     (5)  The provisions of this section are supplemental to
1222other sanctions or remedies available under law or under court
1224     Section 18.  This act does not apply to the foreclosure of
1225liens on timeshare interests under the Timeshare Lien
1226Foreclosure Act, part III of chapter 721, Florida Statutes.
1227     Section 19.  The Division of Statutory Revision is directed
1228to replace the phrase "the effective date of this act" wherever
1229it occurs in this act with the date this act becomes a law.
1230     Section 20.  This act is intended to be remedial in nature
1231and shall apply to any action filed after the effective date of
1232this act.
1233     Section 21.  This act shall take effect October 1, 2012.

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