Bill Text: FL S0854 | 2010 | Regular Session | Introduced

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Bill Title: Rental Property Foreclosure or Short-sale Actions [SPSC]

Spectrum: Bipartisan Bill

Status: (Failed) 2010-04-30 - Died in Committee on Judiciary [S0854 Detail]

Download: Florida-2010-S0854-Introduced.html

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Florida Senate - 2010                                     SB 854 
 
By Senator Sobel 
31-00819-10                                            2010854__ 
1                        A bill to be entitled 
2         An act relating to rental property foreclosure or 
3         short-sale actions; requiring lenders to notify 
4         tenants or lessees of potential foreclosure or short 
5         sale actions against the rental property; requiring 
6         the lenders to provide tenants or lessees a first 
7         right of refusal to purchase the property at fair 
8         market value; specifying eligibility requirements to 
9         exercise such right; requiring lenders to use certain 
10         escrow funds for certain purposes; specifying lender 
11         liability for certain costs for failure to comply with 
12         certain notice requirements; specifying time 
13         restrictions on tenants or lessees bringing actions 
14         for damages; providing an effective date. 
15 
16  Be It Enacted by the Legislature of the State of Florida: 
17 
18         Section 1. (1) Upon consideration of initiating a 
19  foreclosure or short-sale proceeding against mortgaged property 
20  that is subject to a rental or lease agreement, the lender shall 
21  notify each tenant or lessee that such action may be initiated 
22  against the property of which the tenant’s or lessee’s dwelling 
23  unit is a part. The lender shall provide the tenant or lessee 
24  with a first right of refusal to purchase the property at fair 
25  market value. In order to exercise such right, the tenant or 
26  lessee must show proof of the rental agreement and a rental 
27  history of at least 1 year. The lender shall use any funds held 
28  in escrow relating to such mortgage or note for the purpose of 
29  closing costs of the purchase if the tenant or lessee chooses 
30  the option to purchase. If the tenant or lessee does not choose 
31  the option to purchase, the lender shall use such escrow funds 
32  to relocate the tenant or lessee. 
33         (2) Failure to comply with the notice requirements of 
34  subsection (1) renders the lender liable for closing costs or 
35  relocation costs and attorney’s fees and related costs. Any 
36  action by the tenant or lessee to recover damages must be 
37  brought within 90 days after such notice or after the tenant or 
38  lessee learns of the lender’s failure to provide such notice. 
39         Section 2. This act shall take effect July 1, 2010.