Understanding the Intricacies of Florida’s Foreclosure Laws

Foreclosing on multiple properties can be a complex process, particularly in Florida where specific rules and exceptions apply. Whether you are a seasoned investor or a novice in the real estate market, it’s crucial to understand these legal nuances to navigate foreclosures effectively.

Foreclosing on Properties in Separate Counties

In Florida, the “local action rule” mandates that foreclosure actions must proceed in the county where the land is located. This rule is codified in F.S. 47.011 and supported by case law.  However, an important exception exists when a mortgage includes lands in two or more counties. Under F.S. 702.04, foreclosure can occur in any one of these counties, treating the action as if all the land were in that single county. 

Single Note Secured by Multiple Mortgages

In cases where a single debt is secured by multiple mortgages on separate parcels, the mortgagee has the flexibility to foreclose each mortgage successively until the debt is satisfied. However, if the first property foreclosed equals or exceeds the amount of the debt, subsequent foreclosures may be barred.

Multiple Mortgages on the Same Parcel

Alternatively, a mortgagee with several mortgages on the same parcel can file a single foreclosure action covering all mortgages. 

Multiple Properties Owned by Different Mortgagors

In less common situations where multiple parties secure their obligations with parcels they own, the mortgagee can make successive claims against each property until the debt is fully satisfied.

Ormond Beach Foreclosure Defense Lawyer

The foreclosure process is inherently flexible, allowing for tactical decisions based on the mortgagee’s priorities and the value of the parcels.  Andrew J. Pascale is a is an Ormond Beach based foreclosure defense lawyer who works to provide value to the firm’s clients in tough situations.  He may be reached at 877-667-1211.