SB-1666, As Passed Senate, December 11, 2008
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:
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
of them, are situated. If
newspaper is not published
the county, the notice shall be published in a newspaper published
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
(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prevention act is repealed, a person who publishes a first notice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.
sale under this chapter shall be
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
within in the county in which the premises to be
or some part of them, are situated.
, and The sale shall
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
(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
(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
(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.