Great questions.
702.10(1) is applicable to all types of foreclosure -- residential, commercial, even homestead. This is the section under which the court can issue an Order to Show Cause why the foreclosure should not proceed. This provision has been in the law for many years, but some technical issues have prevented it from being used much.
Several courts and commentators have confused it with (2) which is only applicable to non-residential properties. (2) is the provision which allows the court to order the property owner to keep making their mortgage payments on non-residential properties while the foreclosure proceeds.
FLTA has worked very closely with Rep. Passidomo in the development of HB 213 and are very supportive of it. That bill not only fixes the technical issues with 702.10, but also provides the title industry with certainty that a foreclosure won't be reversed after it has been transferred to a bona fide purchaser based on robo-signing, defective assignments or anything else.
Last week, the bill was amended in the civil justice subcommittee (see Gov't Affairs Blog) to remove the finality provisions. As it goes through the process, we'll continue working with Rep. Passidomo to reinstate those provisions.
