FL S1288

Creates Chapter 52, Florida Statutes, establishing a nonjudicial foreclosure procedure for commercial real property as an optional alternative to judicial foreclosure.

Requires foreclosing creditors to appoint a trustee (attorney with 5+ years experience or title insurer in business 5+ years) and provide notice of default and intent to foreclose to obligors, allowing obligors 15 business days to object and forcing creditors to pursue judicial foreclosure if they do.

Permits obligors to redeem the property by paying all amounts owed before the trustee issues the certificate of sale, and requires the trustee to conduct a public auction sale at least 30 calendar days after recording notice of sale with publication in newspapers 2 consecutive weeks before the sale.

Requires the trustee to apply sale proceeds to expenses, the secured debt, junior interest holders' claims (via interpleader if necessary), and any surplus to the former owner or the Chief Financial Officer if the owner cannot be located within one year.

Establishes civil remedies for obligors against foreclosing creditors for material violations and criminal penalties (third-degree felony) for trustees who intentionally violate the foreclosure procedures; effective July 1, 2011.