The Florida Senate

501.2078  Violations involving individual homeowners during the course of residential foreclosure proceedings; civil penalties.--

(1)  As used in this section:

(a)  "Homeowner" means any individual who is the owner of the property subject to a residential foreclosure proceeding.

(b)  "Residential foreclosure proceeding" means any action in a court of this state in which a party seeks to foreclose on a mortgage encumbering the mortgagor's primary dwelling.

(c)  "Victimize" means any course of action intended to dupe, swindle, or cheat a homeowner subject to a residential foreclosure proceeding. The factors that a court shall review when determining whether a course of action is victimizing a homeowner are:

1.  The compensation received relative to the risk and the amount of work involved.

2.  The number of homeowners involved.

3.  The relative bargaining position of the parties.

4.  The relative knowledge and sophistication of the parties.

5.  Representations made in the inducement.

6.  The timing of the agreement.

(2)  Any person, other than a financial institution as defined in s. 655.005, who willfully uses, or has willfully used, a method, act, or practice in violation of this part, which method, act, or practice victimizes or attempts to victimize homeowners during the course of a residential foreclosure proceeding, and in committing such violation knew or should have known that such conduct was unfair or deceptive, is liable for a civil penalty of not more than $15,000 for each such violation.

(3)  Any order of restitution or reimbursement based on a violation of this part committed against a homeowner in a residential foreclosure proceeding has priority over the imposition of any civil penalty for such violation pursuant to this section.

(4)  Civil penalties collected pursuant to this section shall be deposited into the Legal Affairs Revolving Trust Fund of the Department of Legal Affairs and allocated solely to the Department of Legal Affairs for the purpose of preparing and distributing consumer education materials, programs, and seminars to benefit homeowners in residential foreclosure proceedings or to further enforcement efforts.

(5)  This section does not apply to:

(a)  The act of encumbering the dwelling subject to a residential foreclosure proceeding with a substitute or additional lien.

(b)  A deed in lieu of foreclosure, a workout agreement, a bankruptcy plan, or any other agreement between a foreclosing lender and a homeowner.

(c)  A foreclosure sale, eminent domain proceeding, forfeiture, or any other legal process.

History.--s. 6, ch. 2006-175.