Key Things Realtors Need to Know About Florida Foreclosure Laws
Right of redemption
“Right of redemption” is the ability of a mortgage holder to prevent a foreclosure sale by paying amounts due. There are several caveats.
If a property is in the process of foreclosure, the person or entity that holds the mortgage or any interest may prevent a foreclosure sale by paying the money specified in the judgment, order, or decree of foreclosure.
If no judgment, order, or decree of foreclosure has been rendered, the mortgage/interest holder may tender the performance due under the security agreement, including any amounts due because of the exercise of a right to accelerate – plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender, including reasonable attorney’s fees of the creditor.
This may happen before the clerk of the court files a certificate or sale, or the time specified in the judgment, order, or decree of foreclosure, whichever is later.
Otherwise, there is no right of redemption. (Section 45.0315, Florida Statutes)
Compliance with Association Law
Any owner of property that is subject to a condominium or homeowners association is required to comply with the law regarding association disclosure. According to the Florida Statutes, “each unit owner – that is, record owner of legal title to a condominium parcel– who is not a developer … shall comply with the provisions of this subsection prior to the sale of his or her unit.”
Similarly for homeowners associations, “a prospective parcel owner in a community must be presented a disclosure summary before executing the contract for sale. ... The disclosure must be supplied … but the parcel owner.”
Therefore, lenders that acquire properties subject to associations via foreclosure are responsible for complying with the law and are not exempt from the above requirements. (Florida Statutes, Sections 718.103, 718.503(2)and 720.401(1)(a), Florida Statutes)