In short: Affirmed. In a foreclosure redemption fight, the trial court released $393,609.41 held in escrow to the redeeming party. GMAC said the money was unpaid interest and escrow items it was owed, but no court reporter attended the hearings. The Third District held that without a transcript or approved substitute, there was no way to show error.
The Facts
GMAC Mortgage was foreclosing a mortgage in Miami-Dade County. L & L Super Investment, Inc. moved to redeem the property, which means paying off the debt to stop the foreclosure sale. At an April 29, 2014 hearing, the trial court granted redemption and required a tender of $1,372,882.39, but ordered $393,609.41 of that amount held in escrow until further order.
At a second hearing on May 20, 2014, the court released all of the escrowed money back to L & L. GMAC contended the $393,609.41 represented unpaid interest, insurance premiums and other escrowed items it was owed. Neither hearing had a court reporter. On appeal, GMAC tried to fill the gap with affidavits from its lawyers and witnesses describing what happened.
The Decision
The Third District affirmed on October 26, 2016. Without a transcript, the appellate court could not see the evidence or argument the trial judge relied on, and the trial court may have had reasons for its ruling that simply did not appear in the record. When there is no record of the testimony, the judgment must be affirmed unless it is fundamentally wrong on its face, and this order was not. GMAC also had not used the appellate rule that lets a party prepare a statement of the evidence for the trial judge to approve when no transcript exists.
The court refused to accept after-the-fact affidavits as a substitute; a party has to prove its case at the hearing, not on appeal. The opinion summed it up by noting there are no mulligans in contested legal cases. The court did not decide whether a redeeming party owes interest and escrow advances; it never reached that question.
The Law
Florida’s statutory right of redemption is in section 45.0315, Florida Statutes. The mortgagor or a holder of a subordinate interest can stop a foreclosure sale before the clerk files the certificate of sale (or a later time set in the judgment) by paying the amount stated in the foreclosure judgment, or, if no judgment has been entered, the full performance due under the mortgage, including accelerated amounts, plus reasonable foreclosure expenses and attorney’s fees. After that, there is no right of redemption.
On appeal, the appellant has to bring a record that shows the error. Florida Rule of Appellate Procedure 9.200(b) allows a party to prepare a statement of the evidence or proceedings, served on the other side and settled and approved by the trial court, when no transcript exists. The leading case requiring affirmance when the record is missing is Applegate v. Barnett Bank of Tallahassee, 377 So. 2d 1150 (Fla. 1979).
Current law (2026): Section 45.0315 (2026) text unchanged since ch. 93-250. The statement-of-evidence procedure was Rule 9.200(b)(4) in 2016; post cites Rule 9.200(b) generally because the current subparagraph number was not confirmed.
Lessons
- Bring a court reporter to any evidentiary hearing where real money is at stake, including redemption, surplus and payoff hearings.
- If a hearing was not transcribed, use the Rule 9.200(b) statement-of-the-evidence procedure promptly; affidavits filed later will not work.
- Make sure the redemption order states exactly what amounts are owed and why, so the order itself shows any error.
- This case decided a record problem, not whether a redeeming party owes interest or escrow advances.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Mortgage Redeemed for Principal Only, $0 Interest? | GMAC v. Palenzuela, 3D14-1420/2914
Go Deeper
- The Florida Foreclosure Sale: Timing, Redemption, Surplus Funds, and When You Have to Move
- How Appeals Work in Florida: The 30-Day Deadline, Costs, and What a PCA Means
Frequently Asked Questions
Who can redeem a property in a Florida foreclosure?
Under section 45.0315, Florida Statutes, the mortgagor (the borrower) or the holder of any subordinate interest, such as a junior lienholder, can redeem. They must pay the amount in the foreclosure judgment, or the full amount due if no judgment exists, before the clerk files the certificate of sale or a later time set in the judgment.
Can I appeal a Florida ruling if there was no court reporter?
You can file the appeal, but without a transcript the appellate court usually must affirm unless the error appears on the face of the order. Florida Rule of Appellate Procedure 9.200(b) lets you prepare a statement of the evidence for the trial judge to approve, but affidavits prepared after the fact are not an acceptable substitute.
What amount do you pay to redeem a Florida mortgage before the sale?
If a foreclosure judgment has been entered, the redemption amount is the sum stated in that judgment. If not, it is the full performance due under the mortgage, including amounts accelerated, plus reasonable foreclosure expenses and attorney’s fees incurred up to the tender. Disputes over add-on items are decided by the trial court.
Did GMAC v. Palenzuela hold that interest is not owed on redemption?
No. The Third District did not decide whether the $393,609.41 in escrow was owed as interest or escrow advances. It affirmed only because GMAC failed to provide a transcript or approved statement of the hearings, so the court had no way to find that the trial judge erred.
Talk to a Florida foreclosure defense lawyer
Weidner Law, P.A. has defended Florida homeowners in foreclosure and foreclosure appeals for more than 25 years. If you need a foreclosure defense lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
