Florida Statutes
Fla. Stat. § 697.05 (2025)
Balloon mortgages; scope of law; definition; requirements as to contents; penalties for violations; exemptions.
✓ 2025 Florida Statutes — current through the 2025 Regular Session
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697.05 Balloon mortgages; scope of law; definition; requirements as to contents; penalties for violations; exemptions.—
(1) Any conveyance, obligation conditioned or defeasible, bill of sale, or other instrument of writing conveying or selling real property for the purpose or with the intention of securing the payment of money, whether such instrument is from the debtor to the creditor or from the debtor to some third person in trust for the creditor, shall be deemed and held to be a mortgage and shall be subject to the provisions of this section.
(2)(a)1. Every mortgage in which the final payment or the principal balance due and payable upon maturity is greater than twice the amount of the regular monthly or periodic payment of the mortgage shall be deemed a balloon mortgage; and, except as provided in subparagraph 2., there shall be printed or clearly stamped on such mortgage a legend in substantially the following form:
THIS IS A BALLOON MORTGAGE AND THE FINAL PRINCIPAL PAYMENT OR THE PRINCIPAL BALANCE DUE UPON MATURITY IS $ , TOGETHER WITH ACCRUED INTEREST, IF ANY, AND ALL ADVANCEMENTS MADE BY THE MORTGAGEE UNDER THE TERMS OF THIS MORTGAGE.
2. In the case of any balloon mortgage securing the payment of an obligation the rate of interest on which is variable or is to be adjusted or renegotiated periodically, where the principal balance due on maturity cannot be calculated with any certainty:
a. The principal balance due upon maturity shall be calculated on the assumption that the initial rate of interest will apply for the entire term of the mortgage;
b. The legend shall disclose that the stated principal balance due upon maturity is an approximate amount based on such assumption; and
c. A legend in substantially the following form suffices to comply with the requirements of this section:
THIS IS A BALLOON MORTGAGE SECURING A VARIABLE (adjustable; renegotiable) RATE OBLIGATION. ASSUMING THAT THE INITIAL RATE OF INTEREST WERE TO APPLY FOR THE ENTIRE TERM OF THE MORTGAGE, THE FINAL PRINCIPAL PAYMENT OR THE PRINCIPAL BALANCE DUE UPON MATURITY WOULD BE APPROXIMATELY $ , TOGETHER WITH ACCRUED INTEREST, IF ANY, AND ALL ADVANCEMENTS MADE BY THE MORTGAGEE UNDER THE TERMS OF THIS MORTGAGE. THE ACTUAL BALANCE DUE UPON MATURITY MAY VARY DEPENDING ON CHANGES IN THE RATE OF INTEREST.
(b) This legend, including the principal balance due upon maturity, shall appear at the top of the first page or face sheet of the mortgage and also shall appear immediately above the place for signature of the mortgagor. The legend shall be conspicuously printed or stamped.
(3) Failure of a mortgagee or creditor or a third party in trust for a mortgagee or creditor to comply with the provisions of this section shall automatically extend the maturity date of such mortgage in the following manner: The mortgagor shall continue to make monthly or periodic payments until the principal and interest which has accrued prior to the time of the balloon payment of the mortgage is paid in full, and the maturity date shall be automatically extended to the date upon which said payments would cause the mortgage debt to be paid in full assuming such payments are made when due upon such monthly or periodic schedule. The mortgagor shall be entitled to prepay the mortgage without penalty during the extension period.
(4) This section does not apply to the following:
(a) Any mortgage in effect prior to January 1, 1960;
(b) Any first mortgage, excluding a mortgage in favor of a home improvement contractor defined in s. 520.61(13) the execution of which is required solely by the terms of a home improvement contract which is governed by the provisions of ss. 520.60-520.98;
(c) Any mortgage created for a term of 5 years or more, excluding a mortgage in favor of a home improvement contractor defined in s. 520.61(13) the execution of which is required solely by the terms of a home improvement contract which is governed by the provisions of ss. 520.60-520.98;
(d) Any mortgage, the periodic payments on which are to consist of interest payments only, with the entire original principal sum to be payable upon maturity;
(e) Any mortgage securing an extension of credit in excess of $500,000;
(f) Any mortgage granted in a transaction covered by the federal Truth in Lending Act, 15 U.S.C. ss. 1601 et seq., in which each mortgagor thereunder is furnished a Truth in Lending Disclosure Statement that satisfies the requirements of the federal Truth in Lending Act; or
(g) Any mortgage granted by a purchaser to a seller pursuant to a written agreement to buy and sell real property which provides that the final payment of said mortgage debt will exceed the periodic payments thereon.
History.—ss. 1, 2, 3, 4, 5, ch. 59-356; s. 1, ch. 61-472; ss. 12, 13, ch. 83-267; ss. 11, 12, ch. 83-311; s. 1, ch. 86-39; s. 69, ch. 99-3; s. 22, ch. 99-164; s. 1879, ch. 2003-261.
Notes of Decisions
Cited in 21
cases, 1965–2015 · leading case: Fogg v. Se. Bank, NA, 473 So. 2d 1352 (Fla. 4th DCA 1985).
Fogg v. Se. Bank, NA, 473 So. 2d 1352 (Fla. 4th DCA 1985). “The trial court therefore correctly applied the 1983 amendment to section 697.05, Florida Statutes, to this case.”
Overstreet v. Bishop, 343 So. 2d 958 (Fla. 1st DCA 1977). “Several weeks afterward, Moody discovered that the mortgage was a balloon mortgage and subject to the proscriptions of Section 697.05, Florida Statutes (1975). [1] He then reported such fact to Bishop.”
Slomovic v. Petryk, 341 So. 2d 208 (Fla. 4th DCA 1976). “She relies upon the provisions of F.S. 697.05 (1975), to sustain her position.”
Stevens v. Allegro Leasing, Inc., 562 So. 2d 380 (Fla. 4th DCA 1990). “Appellee (Allegro), as the purchaser/mortgagor, contended that the note and mortgage involved did not comply with section 697.05, Florida Statutes (1982), pertaining to balloon mortgages.”
Bellman v. Yarmark Enter., Inc., 180 So. 2d 663 (Fla. 3d DCA 1965). “05 Balloon mortgages; scope of law; definition; requirements as to-contents; penalties for violations; exemptions “(1) Any conveyance, obligation' conditioned or defeasible, bill of sale- or other instrument of writing conveying or selling real property for the-purpose or with…”
Spielvogel v. Crown Realty Assocs., 465 So. 2d 532 (Fla. 4th DCA 1984). “By the terms of the final judgment, the mortgage involved in the parties’ dispute was determined not to be a balloon mortgage as defined by Section 697.05, Florida Statutes (1983) because of the following exemption from the statute’s application recited in subsection 697.”
Winner v. Westwood, 237 So. 2d 151 (Fla. 1970). “This is a direct appeal from Circuit Court, Pinellas County, which rendered an amended final judgment upholding the constitutionality of Fla.Stat. § 697.05, F.S.A., the “Balloon Mortgage Statute.”
Davies v. Cox, 349 So. 2d 218 (Fla. 4th DCA 1977). “This is an appeal involving the construction and effect of Section 697.05, Florida Statutes, dealing with balloon mortgages.”
Lage v. Pan Am. Bank, 529 So. 2d 1242 (Fla. 3d DCA 1988). “The question presented in this appeal from a Final Judgment in a mortgage foreclosure action is whether the provisions of the balloon mortgage statute, § 697.05, Fla.Stat. (1987), 1 govern the mortgage un *1244 der consideration.”
O'Neil v. Lorain Nat'l Bank, 369 So. 2d 378 (Fla. 1st DCA 1979). “§ 697.05 Fla.Stat. (1977). O’Neil argues that he is also entitled to an award of the interest paid by his predecessor mortgagor.”
Fletcher v. Liberty Nat'l Bank & Trust Co. of Louisville, 349 So. 2d 652 (Fla. 1st DCA 1977). “have an interest in the subject mortgage; that by reason of certain acts on the part of the original holder of the mortgage, Great American Mortgage Investors, 1 it was, with the knowledge of Liberty, estopped to claim a default; that with Liberty’s knowledge, the loan from…”
Perry v. Key West State Bank, 339 So. 2d 248 (Fla. 3d DCA 1976). “…and delivery. Hence, the trial court correctly denied defendant’s motion to dismiss and to strike. Affirmed. . § 697.05, Fla.Stat. (1975).”
— 697.05(2) — 2 cases
Fogg v. Se. Bank, NA, 473 So. 2d 1352 (Fla. 4th DCA 1985). “The trial court therefore correctly applied the 1983 amendment to section 697.05, Florida Statutes, to this case.”
O'Neil v. Lorain Nat'l Bank, 369 So. 2d 378 (Fla. 1st DCA 1979). “§ 697.05 Fla.Stat. (1977). O’Neil argues that he is also entitled to an award of the interest paid by his predecessor mortgagor.”
— 697.05(2)(a) — 5 cases
Fogg v. Se. Bank, NA, 473 So. 2d 1352 (Fla. 4th DCA 1985). “The trial court therefore correctly applied the 1983 amendment to section 697.05, Florida Statutes, to this case.”
Davies v. Cox, 349 So. 2d 218 (Fla. 4th DCA 1977). “This is an appeal involving the construction and effect of Section 697.05, Florida Statutes, dealing with balloon mortgages.”
Lage v. Pan Am. Bank, 529 So. 2d 1242 (Fla. 3d DCA 1988). “The question presented in this appeal from a Final Judgment in a mortgage foreclosure action is whether the provisions of the balloon mortgage statute, § 697.05, Fla.Stat. (1987), 1 govern the mortgage un *1244 der consideration.”
Perry v. Key West State Bank, 339 So. 2d 248 (Fla. 3d DCA 1976). “…and delivery. Hence, the trial court correctly denied defendant’s motion to dismiss and to strike. Affirmed. . § 697.05, Fla.Stat. (1975).”
Snaith v. Haraldson, 466 So. 2d 1148 (Fla. 4th DCA 1985).
— 697.05(2)(a)(b)(1975) — 1 case
Slomovic v. Petryk, 341 So. 2d 208 (Fla. 4th DCA 1976). “She relies upon the provisions of F.S. 697.05 (1975), to sustain her position.”
— 697.05(2)(b) — 2 cases
Mejia v. Conamaris Inv. Corp., 671 So. 2d 204 (Fla. 4th DCA 1996).
Snaith v. Haraldson, 466 So. 2d 1148 (Fla. 4th DCA 1985).
— 697.05(3) — 3 cases
Slomovic v. Petryk, 341 So. 2d 208 (Fla. 4th DCA 1976). “She relies upon the provisions of F.S. 697.05 (1975), to sustain her position.”
Lage v. Pan Am. Bank, 529 So. 2d 1242 (Fla. 3d DCA 1988). “The question presented in this appeal from a Final Judgment in a mortgage foreclosure action is whether the provisions of the balloon mortgage statute, § 697.05, Fla.Stat. (1987), 1 govern the mortgage un *1244 der consideration.”
Perry v. Key West State Bank, 339 So. 2d 248 (Fla. 3d DCA 1976). “…and delivery. Hence, the trial court correctly denied defendant’s motion to dismiss and to strike. Affirmed. . § 697.05, Fla.Stat. (1975).”
— 697.05(4) — 3 cases
Fogg v. Se. Bank, NA, 473 So. 2d 1352 (Fla. 4th DCA 1985). “The trial court therefore correctly applied the 1983 amendment to section 697.05, Florida Statutes, to this case.”
O'Neil v. Lorain Nat'l Bank, 369 So. 2d 378 (Fla. 1st DCA 1979). “§ 697.05 Fla.Stat. (1977). O’Neil argues that he is also entitled to an award of the interest paid by his predecessor mortgagor.”
Caden v. Safeco Title Ins. Co., 475 So. 2d 275 (Fla. 2d DCA 1985).
— 697.05(4)(b) — 1 case
Zander v. Cima, 197 So. 3d 1082 (Fla. 2d DCA 2015).
— 697.05(4)(g) — 1 case
Zander v. Cima, 197 So. 3d 1082 (Fla. 2d DCA 2015).
— 697.05(5) — 1 case
Winner v. Westwood, 237 So. 2d 151 (Fla. 1970). “This is a direct appeal from Circuit Court, Pinellas County, which rendered an amended final judgment upholding the constitutionality of Fla.Stat. § 697.05, F.S.A., the “Balloon Mortgage Statute.”
— 697.05(5)(c) — 3 cases
Spielvogel v. Crown Realty Assocs., 465 So. 2d 532 (Fla. 4th DCA 1984). “By the terms of the final judgment, the mortgage involved in the parties’ dispute was determined not to be a balloon mortgage as defined by Section 697.05, Florida Statutes (1983) because of the following exemption from the statute’s application recited in subsection 697.”
Perry v. Key West State Bank, 339 So. 2d 248 (Fla. 3d DCA 1976). “…and delivery. Hence, the trial court correctly denied defendant’s motion to dismiss and to strike. Affirmed. . § 697.05, Fla.Stat. (1975).”
Snaith v. Haraldson, 466 So. 2d 1148 (Fla. 4th DCA 1985).
— 697.05(5)(d) — 1 case
Davies v. Cox, 349 So. 2d 218 (Fla. 4th DCA 1977). “This is an appeal involving the construction and effect of Section 697.05, Florida Statutes, dealing with balloon mortgages.”
— 697.05(5)(e) — 2 cases
Shell Materials, Inc. v. First Bank of Pinellas Cnty. (In re Shell Materials, Inc.), 51 B.R. 744 (Bankr. M.D. Fla. 1985).
Fogg v. Se. Bank, N.A., 7 Fla. Supp. 2d 1 (Fla. Cir. Ct. 1984).
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