Mortgage Law Update
A recent decision authored by Third District Judge Barbara Lagoa will
energize §702.1001 (2010) and should be examined by counsel and lender
with respect to all commercial foreclosures. Farah Real Estate and
Investment, LLC v. Bank of Miami, ___ So.3d ___, Case No. 3D10-2602 &
3D10-2603 (Fla. 3d DCA, March 16, 2011). In Farah, the court insisted upon
full enforcement of the “show cause” procedure in non-residential cases,
which requires either monthly payments or turnover of possession of the
property if the lender shows probable validity of its claim. Although
rarely treated in prior appellate jurisprudence, this decision could
prompt much greater lender reliance on §702.10(2) in future
non-residential cases.
