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 real or personal property. It establishes that the right of redemption cannot be waived unless certain conditions are met, including fully 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 prohibiting mortgagees from acquiring property interests outside of these sales.

The legislation clarifies that a mortgage is a specific lien on the property, without conveying legal title or possession rights to the mortgagee, and establishes that all mortgage foreclosures must occur in equity. It specifies that strict foreclosure rights are unenforceable in Florida and introduces conditions under which a mortgagee may acquire title to mortgaged property, including requirements for written agreements that disclose financial information. The bill also allows for property transfers during pending foreclosure proceedings under certain conditions, with strict compliance requirements for the transfer instruments to ensure enforceability. The act is considered remedial and will apply to all mortgages and related agreements, with an effective date of July 1, 2025.

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