Bill Text: FL H0065 | 2012 | Regular Session | Introduced

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Bill Title: Foreclosure Debt Relief

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-06 - Withdrawn prior to introduction -HJ 12 [H0065 Detail]

Download: Florida-2012-H0065-Introduced.html

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HB 65

1	A bill to be entitled
2	An act relating to foreclosure debt relief; providing
3	a short title; providing definitions; authorizing the
4	creation and administration of a deficiency judgment
5	reimbursement program by the Florida Housing Finance
6	Corporation contingent upon the occurrence of certain
7	conditions precedent; providing for future termination
8	of the program; authorizing continuation of the
9	program under certain circumstances after depletion of
10	funds; providing procedures and eligibility
11	requirements for homeowners and financial institutions
12	to file specified monetary claims; providing an
13	effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Deficiency judgment reimbursement program.-
18	(1)  This section may be cited as the "Foreclosure Debt
19	Claims Act."
20	(2)  As used in this section, the term:
21	(a)  "Deficiency" means the total amount owed by an
22	eligible homeowner to a participating financial institution as
23	determined by a court at a hearing on a motion for summary
24	judgment in a foreclosure action.
25	(b)  "Eligible homeowner" means an owner who purchased
26	homestead property between January 1, 2004, and December 31,
27	2008, inclusive, and whose homestead property is subject to a
28	foreclosure action brought by a participating financial
29	institution.
30	(c)  "Foreclosure action" means a foreclosure action filed
31	in a court of this state.
32	(d)  "Fund" means the moneys, or the account containing the
33	moneys, allocated by the United States Department of Treasury
34	from the Housing Finance Agency Innovation Fund for the Hardest-
35	Hit Housing Markets to the Florida Housing Finance Corporation.
36	(e)  "Homestead property" means real property determined by
37	a court having jurisdiction over a foreclosure action brought by
38	a participating financial institution to be the primary
39	residence of the defendant homeowner based upon the totality of
40	circumstances.
41	(f)  "Participating financial institution" means any
42	financial institution that:
43	1.  Is authorized to engage in lending activities in this
44	state;
45	2.  Holds a mortgage subject to a foreclosure action
46	against an eligible homeowner; and
47	3.  Has voluntarily agreed to participate in the program.
48	(g)  "Program" means the deficiency judgment reimbursement
49	program created and administered by the Florida Housing Finance
50	Corporation in accordance with this section.
51	(3)  Contingent upon the United States Department of the
52	Treasury authorizing and directing the Florida Housing Finance
53	Corporation to create and administer the deficiency judgment
54	reimbursement program as provided for in this section and upon
55	receiving a minimum of $100 million from the Housing Finance
56	Agency Innovation Fund for the Hardest-Hit Housing Markets, the
57	corporation shall:
58	(a)  Create the deficiency judgment reimbursement program
59	in compliance with both the provisions of this section and the
60	directive given by the United States Department of the Treasury
61	for the creation and administration of the program.
62	(b)  Create all the notices and forms necessary for the
63	administration of the program.
64	(c)  Process filed claims in the order received and pay
65	claims until the fund is depleted or the program is continued
66	pursuant to subsection (4).
67	(d)  If program funds are depleted before the scheduled
68	termination of the program, notify all participating financial
69	institutions about such depletion, unless the program is
70	continued pursuant to subsection (4).
71	(4)  Any program created pursuant to this section shall
72	terminate 1 year after the receipt of the funds required under
73	subsection (3). However, if the funds are depleted before the
74	scheduled termination of the program, the program may be
75	continued until the scheduled termination date, subject to an
76	appropriation by the Legislature, for the purpose of paying any
77	pending claims filed before the depletion of funds.
78	(5)  An eligible homeowner is entitled to receive a waiver
79	of deficiency from a participating financial institution and up
80	to $1,000 in moving expenses from the fund if the eligible
81	homeowner agrees in writing to:
82	(a)  Settle the foreclosure action by entry of a
83	nonmonetary judgment of foreclosure against the eligible
84	homeowner; and
85	(b)  Vacate the homestead property within 3 months after
86	entry of judgment against the eligible homeowner or the judicial
87	sale, whichever occurs later.
88
89	An agreement under this subsection is valid only if it is in
90	writing.
91	(6)  A participating financial institution is entitled to
92	file a claim with the Florida Housing Finance Corporation for an
93	amount equal to 10 percent of the deficiency arising from a
94	foreclosure action settled as a result of a written agreement
95	entered into by a participating financial institution and an
96	eligible homeowner pursuant to subsection (5).
97	Section 2.  This act shall take effect upon becoming a law.

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