The "Redemption Procedures Improvement Act" seeks to strengthen the rights of property owners and junior lienors in the context of redemption and foreclosure processes. The bill introduces provisions that allow defendants, property owners, or holders of subordinate interests to cure their indebtedness and prevent the sale of their properties. It establishes that the right of redemption cannot be waived without informed consent and proper disclosures. Additionally, the bill outlines procedures for transferring liens to substitute security, ensuring that any excess security is returned to the party filing the transfer. Key amendments include mandating that properties in foreclosure be sold at judicial sales and clarifying the conditions under which mortgagees may acquire properties.

Furthermore, the bill clarifies the nature of a mortgage as a specific lien rather than a conveyance of legal title or possession, stating that mortgagees do not gain any interest or right to legal title or possession except through judicial sales or compliance with existing statutes. It also prohibits strict foreclosure by contract or forbearance and introduces new provisions under Section 702.011, allowing mortgagees to acquire title to mortgaged properties under certain conditions, including the necessity for written agreements and disclosures. The legislation is designed to protect property owners from potential fraud during the foreclosure process and applies to all mortgages and related agreements, with specific provisions for transfers and settlements effective from July 1, 2025.

Statutes affected:
S 1778 Filed: 45.0315, 679.612, 697.02, 702.01