Q: I represent a seller whose lender just filed a foreclosure action. How long does the seller have to exercise his right of redemption?
A: Generally, the owner may exercise his or her right of redemption any time before the clerk files the certificate of sale. However, a later date may be specified in the judgment of foreclosure.
Q: I represent a seller whose lender just filed a foreclosure action. The seller believes that the lender has lost the note and will be unable to foreclose. If the lender has lost the note, does it mean the mortgage is unenforceable?
A: No. Although the note is the best evidence, it’s not the only evidence that the transaction was a mortgage arrangement. The courts have held that the absence of a note doesn’t make a mortgage unenforceable. The lender would have to file a lost instrument affidavit in the foreclosure proceedings.
Q: I represent a bank that acquired title to a residential condominium unit through foreclosure procedures. They say they’re not required to comply with the disclosure required pursuant to Section 718.503(2) since the bank isn't a traditional seller, even though this is a resale. Is this true?
A: No. Section 718.503(2) provides that "each unit owner who is not a developer … shall comply with the provisions of this subsection prior to the sale of his or her unit." A "unit owner" is defined in Section 718.103 as a "record owner of legal title to a condominium parcel." There is no exemption set forth in the condominium act for banks that acquire title to residential units via foreclosure.