Bill Text: FL H0125 | 2010 | Regular Session | Introduced

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Bill Title: Rental Property Foreclosure or Short-sale Actions

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-03-02 - Introduced, referred to Civil Justice & Courts Policy (CCJP); Insurance, Business, & Financial Affairs Policy (GGPC); Policy Council; Criminal & Civil Justice Policy Council -HJ 00019; On Committee agenda-- Civil Justice & Courts Policy (CCJP), 01/12/10, 10:00 am, Reed Hall --Temporarily deferred; On Committee agenda-- Civil Justice & Courts Policy (CCJP), 03/01/10, 2:15 pm, Reed Hall; Unfavorable by Civil Justice & Courts Policy (CCJP), laid on Table; YEAS 2 NAYS 9 -HJ 00207 [H0125 Detail]

Download: Florida-2010-H0125-Introduced.html

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HB 125

1	A bill to be entitled
2	An act relating to rental property foreclosure or short-
3	sale actions; requiring lenders to notify tenants or
4	lessees of potential foreclosure or short-sale actions
5	against the rental property; requiring the lenders to
6	provide tenants or lessees a first right of refusal to
7	purchase the property at fair market value; specifying
8	eligibility requirements to exercise such right; requiring
9	lenders to use certain escrow funds for certain purposes;
10	specifying lender liability for certain costs for failure
11	to comply with certain notice requirements; specifying
12	time restrictions on tenants or lessees bringing actions
13	for damages; providing an effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1. (1) Upon consideration of initiating a
18	foreclosure or short-sale proceeding against mortgaged property
19	that is subject to a rental or lease agreement, the lender shall
20	notify each tenant or lessee that such action may be initiated
21	against the property of which the tenant's or lessee's dwelling
22	unit is a part. The lender shall provide the tenant or lessee
23	with a first right of refusal to purchase the property at fair
24	market value. In order to exercise such right, the tenant or
25	lessee must show proof of the rental agreement and a rental
26	history of at least 1 year. The lender shall use any funds held
27	in escrow relating to such mortgage or note for the purpose of
28	closing costs of the purchase if the tenant or lessee chooses
29	the option to purchase. If the tenant or lessee does not choose
30	the option to purchase, the lender shall use such escrow funds
31	to relocate the tenant or lessee.
32	(2) Failure to comply with the notice requirements of
33	subsection (1) renders the lender liable for closing costs or
34	relocation costs and attorney's fees and related costs. Any
35	action by the tenant or lessee to recover damages must be
36	brought within 90 days after such notice or after the tenant or
37	lessee learns of the lender's failure to provide such notice.
38	Section 2. This act shall take effect July 1, 2010.

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