Purchase Money Mortgages (PMM)
A PMM finances the property it secures: seller financing, lender financing, or combination. Distinguished from refinance, HELOC, and construction loans. FL special protections: homestead exception (Art. X, Sec. 4: PMM enforceable because it created the homestead), priority over pre-existing judgments, and deficiency available (Section 702.06, unlike some states).
Types
- Seller financing (seller takes back mortgage)
- Lender financing (bank purchase loan)
- Combination (bank + seller)
Special Protections
- Homestead exception: can foreclose
- Priority over pre-existing judgments
- Deficiency available (Section 702.06)
Homestead
- PMM enforceable: created the homestead
- Voluntary mortgages also enforceable
Related Terms
- Mortgage — Property financing
Barnes Walker Real Estate
Barnes Walker’s attorneys handle PMM transactions in Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC