Right of Redemption Laws in the State of Florida
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When a homeowner defaults on a loan, usually the creditor will attempt to re-take the property that served as collateral for the loan. The right of redemption is when there is a statutory period in which the debtor can satisfy its debt and avoid losing the collateral. Home foreclosures are the most common example of this process. Florida law provides a right of redemption in which a foreclosed homeowner can redeem the property and avoid losing the home.
- In Florida, a foreclosure must occur judicially. In other words, the creditor must initiate foreclosure proceedings in a Florida court by suing the defaulted homeowner. Foreclosure proceedings are tried without a jury under Florida law. This type of trial is called a bench trial where the judge acts as both finder of fact and concluder of law. At the close of trial, the court will likely enter a final judgment amount, which would include the amount left on the loan, interest, fees and other costs.
Statutory Right of Redemption
- Florida Statute 45.0315 allows foreclosed homeowners to redeem their property by paying the final judgment amount prior to the issuance of the Certificate of Sale to the new owner. In other words, once a final judgment amount is entered, the lender may auction the property. It is not until sometime after the sale is complete before the Certificate of Sale is issued. At any time before or after the auction, up until that Certificate of Sale is issued, a foreclosed homeowner can pay the final judgment amount and redeem the property, which voids the auction sale.
Equitable Right of Redemption
- If the foreclosed homeowner cannot pay the final judgment amount, there is another way to challenge the property's sale. In a foreclosure proceeding, a Florida court will typically order a foreclosure sale and specify how the sale will occur. Once the property is sold, the foreclosed homeowner has a 10-day equitable right of redemption period to object to the terms of the sale based on violation of the court ordered procedures or because the sale price was a result of bidder collusion or other unfair practice which lead to an artificially low sale price. This right is important because if the property is sold for less than what the foreclosed homeowner owed, then the lender may obtain a deficiency judgment against the foreclosed homeowner.
- This information provided by the state of Florida is not intended to give legal advice but only to give an overview of right of redemption laws in Florida. To find out how the facts of your particular situation apply to the law, consult a qualified attorney licensed to practice law in the State of Florida.