SB-1666, As Passed Senate, December 11, 2008

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1666

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3208, 3216, and 3240 (MCL 600.3208, 600.3216,

 

and 600.3240), section 3240 as amended by 2006 PA 579.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3208. (1) Notice that the a mortgage will be foreclosed

 

by a sale of the mortgaged premises, or some part of them, shall be

 

given by publishing the same for 4 successive weeks at least once

 

in each week, in a newspaper published in the county where the

 

premises included in the mortgage and intended to be sold, or some

 

part of them, are situated. If no a newspaper is not published in

 

the county, the notice shall be published in a newspaper published

 

in an adjacent county. In every case within Within 15 days after

 

the first publication of the notice, a true copy shall be posted in

 


a conspicuous place upon any part of the premises described in the

 

notice.

 

     (2) After April 1, 2009 and before the home foreclosure

 

prevention act is repealed, a person who publishes a first notice

 

under this section regarding a mortgage on residential property

 

described in section 3240(8) shall include in the notice and all

 

subsequent notices a statement by the person that both of the

 

following are true:

 

     (a) Notice was sent as required by section 3 of the home

 

foreclosure prevention act.

 

     (b) The date that the notice is published is on or after the

 

applicable date to commence proceedings to foreclose the mortgage

 

under section 4 of the home foreclosure prevention act.

 

     Sec. 3216. (1) The A sale under this chapter shall be at

 

public sale, between the hour of 9 o'clock in the forenoon and 4

 

o'clock in the afternoon 9 a.m. and 4 p.m., at the place of holding

 

the circuit court within in the county in which the premises to be

 

sold, or some part of them, are situated. , and The sale shall be

 

made by the person appointed for that purpose in the mortgage, or

 

by the sheriff, undersheriff, or a deputy sheriff of the county, to

 

the highest bidder.

 

     (2) If the notices of foreclosure sale under section 3208 fail

 

to include the statement required by section 3208 or if a statement

 

included in a notice is materially inaccurate, the person making

 

the sale under subsection (1) shall not conduct the sale until the

 

party attempting to foreclose by advertisement has complied with

 

the home foreclosure prevention act.

 


     Sec. 3240. (1) A purchaser's deed is void if the mortgagor,

 

the mortgagor's heirs, executors, or administrators, or any person

 

lawfully claiming under the mortgagor or the mortgagor's heirs,

 

executors, or administrators redeems the entire premises sold by

 

paying the amount required under subsection (2), within the

 

applicable time limit prescribed in subsections (7) to (12), to the

 

purchaser or the purchaser's executors, administrators, or assigns,

 

or to the register of deeds in whose office the deed is deposited

 

for the benefit of the purchaser.

 

     (2) The amount required to be paid under subsection (1) is the

 

sum that was bid for the entire premises sold, with interest from

 

the date of the sale at the interest rate provided for by the

 

mortgage, together with the amount of the sheriff's fee paid by the

 

purchaser under section 2558(2)(q), and an additional $5.00 as a

 

fee for the care and custody of the redemption money if the payment

 

is made to the register of deeds. The register of deeds shall not

 

determine the amount necessary for redemption. The purchaser shall

 

attach an affidavit with the deed to be recorded under this section

 

that states the exact amount required to redeem the property under

 

this subsection, including any daily per diem amounts, and the date

 

by which the property must be redeemed shall be stated on the

 

certificate of sale. The purchaser may include in the affidavit the

 

name of a designee responsible on behalf of the purchaser to assist

 

the person redeeming the property in computing the exact amount

 

required to redeem the property. The designee may charge a fee as

 

stated in the affidavit and may be authorized by the purchaser to

 

receive redemption funds. The purchaser shall accept the amount

 


computed by the designee.

 

     (3) If a distinct lot or parcel separately sold is redeemed,

 

leaving a portion of the premises unredeemed, the deed shall be

 

void only to the redeemed parcel or parcels.

 

     (4) If after the sale the purchaser, the purchaser's heirs,

 

executors, or administrators, or any person lawfully claiming under

 

the purchaser or the purchaser's heirs, executors, or

 

administrators pays taxes assessed against the property, amounts

 

necessary to redeem senior liens from foreclosure, condominium

 

assessments, homeowner association assessments, community

 

association assessments, or premiums on an insurance policy

 

covering any buildings located on the property that under the terms

 

of the mortgage it would have been the duty of the mortgagor to pay

 

if the mortgage had not been foreclosed and that are necessary to

 

keep the policy in force until the expiration of the period of

 

redemption, redemption shall be made only upon payment of the sum

 

specified in subsection (2) plus the amounts specified in this

 

subsection with interest on the amounts specified in this

 

subsection from the date of the payment to the date of redemption

 

at the interest rate specified in the mortgage, if all of the

 

following are filed with the register of deeds with whom the deed

 

is deposited:

 

     (a) An affidavit by the purchaser or someone in his or her

 

behalf who has knowledge of the facts of the payment showing the

 

amount and items paid.

 

     (b) The receipt or copy of the canceled check evidencing the

 

payment of the taxes, amounts necessary to redeem senior liens from

 


foreclosure, condominium assessments, homeowner association

 

assessments, community association assessments, or insurance

 

premiums.

 

     (c) An affidavit of an insurance agent of the insurance

 

company stating that the payment was made and what portion of the

 

payment covers the premium for the period before the expiration of

 

the period of redemption.

 

     (5) If the redemption payment in subsection (4) includes an

 

amount used to redeem a senior lien from a nonjudicial foreclosure,

 

the mortgagor shall have the same defenses against the purchaser

 

with respect to the amount used to redeem the senior lien as the

 

mortgagor would have had against the senior lien.

 

     (6) The register of deeds shall indorse on the documents filed

 

under subsection (4) the time they are received. The register of

 

deeds shall record the affidavit of the purchaser only and shall

 

preserve in his or her files the recorded affidavit, receipts,

 

insurance receipts, and insurance agent's affidavit until

 

expiration of the period of redemption.

 

     (7) Subject to subsections (9) to (11), for a mortgage

 

executed on or after January 1, 1965, on commercial or industrial

 

property, or multifamily residential property in excess of 4 units,

 

the redemption period is 6 months from the date of the sale.

 

     (8) Subject to subsections (9) to (11), for a mortgage

 

executed on or after January 1, 1965, on residential property not

 

exceeding 4 units and not more than 3 acres in size, if the amount

 

claimed to be due on the mortgage at the date of the notice of

 

foreclosure is more than 66-2/3% of the original indebtedness

 


secured by the mortgage, the redemption period is 6 months.

 

However, if the mortgagor has mailed the form under section 3(3) of

 

the home foreclosure prevention act to the mortgage servicer, the

 

redemption period under this subsection is reduced to 5 months.

 

     (9) Subject to subsection (10), for a mortgage on residential

 

property not exceeding 4 units, if the property is abandoned as

 

determined under section 3241, the redemption period is 3 months.

 

     (10) For a mortgage on residential property not exceeding 4

 

units, if the amount claimed to be due on the mortgage at the date

 

of the notice of foreclosure is more than 66-2/3% of the original

 

indebtedness secured by the mortgage and the property is abandoned

 

as determined under section 3241, the redemption period is 1 month.

 

     (11) If the property is abandoned as determined under section

 

3241a, the redemption period is 30 days or until the time to

 

provide the notice required by section 3241a(c) expires, whichever

 

is later.

 

     (12) If subsections (7) to (11) do not apply, the redemption

 

period is 1 year from the date of the sale.

 

     (13) The amount stated in any affidavits recorded under this

 

section shall be the amount necessary to satisfy the requirements

 

for redemption under this section.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) House Bill No. 6614.

 

     (b) House Bill No. 6615.