HOUSE BILL No. 5340

 

October 23, 2007, Introduced by Rep. Young and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3110, 3120, 3204, and 3212 (MCL 600.3110,

 

600.3120, 600.3204, and 600.3212), sections 3204 and 3212 as

 

amended by 2004 PA 186.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3110. (1) Whenever If a complaint is filed for the

 

satisfaction or foreclosure of any a mortgage on real estate or

 

land contract, upon which there is due any interest or any a

 

portion or installment of the principal and there are other

 

portions or installments to become due subsequently, the complaint

 

shall be dismissed upon the defendant's bringing into court if the

 

defendant, at any time before the judgment of sale, pays to the

 

court the principal and interest due, with costs.

 

     (2) If the complaint described in subsection (1) is for the


 

foreclosure of a mortgage of residential real estate, and if 18

 

months have passed since the defendant first failed to pay an

 

installment under the mortgage, the complaint shall be dismissed

 

if, regardless of whether the mortgagee has accelerated the balance

 

secured by the mortgage, the defendant pays to the court only the

 

portions or installments that are unpaid and interest on those

 

portions and installments, not portions or installments to become

 

due subsequently.

 

     Sec. 3120. (1) If, after a judgment of sale is entered,

 

against him , the defendant brings into pays to the court the

 

principal and interest due with costs, the proceedings in the

 

action shall be stayed, ; but the court shall enter a judgment of

 

foreclosure and sale. to be enforced by a further order of the

 

court upon a subsequent default If the defendant later defaults in

 

the payment of any portion or installment of the principal , or of

 

any interest thereafter to become that later becomes due, the court

 

shall enter an order to enforce the judgment of foreclosure and

 

sale.

 

     (2) If the real estate that is the subject of the judgment of

 

foreclosure and sale under subsection (1) is residential real

 

estate, and if less than 18 months have passed since the defendant

 

first failed to pay an installment under the mortgage, the amount

 

of principal and interest due shall not include any accelerated

 

balance secured by the mortgage.

 

     Sec. 3204. (1) A party may foreclose a mortgage by

 

advertisement if all of the following circumstances exist:

 

     (a) A default in a condition of the mortgage has occurred, by


 

which the power to sell became operative.

 

     (b) An action or proceeding has not been instituted, at law,

 

to recover the debt secured by the mortgage or any part of the

 

mortgage; or, if an action or proceeding has been instituted, the

 

action or proceeding has been discontinued; or an execution on a

 

judgment rendered in an action or proceeding has been returned

 

unsatisfied, in whole or in part.

 

     (c) The mortgage containing the power of sale has been

 

properly recorded.

 

     (d) The party foreclosing the mortgage is either the owner of

 

the indebtedness or of an interest in the indebtedness secured by

 

the mortgage or the servicing agent of the mortgage.

 

     (2) If a mortgage is given to secure the payment of money by

 

installments, each of the installments mentioned in the mortgage

 

after the first shall be treated as a separate and independent

 

mortgage. The mortgage for each of the installments may be

 

foreclosed in the same manner and with the same effect as if a

 

separate mortgage were given for each subsequent installment. A

 

redemption of a sale by the mortgagor has the same effect as if the

 

sale for the installment had been made upon an independent prior

 

mortgage.

 

     (3) If the real estate that is the subject of the mortgage

 

being foreclosed is residential real estate, and if less than 18

 

months have passed since the mortgagor first failed to pay an

 

installment under the mortgage, the mortgage shall only be

 

foreclosed as to the installments that are due and have not been

 

paid, any interest on the unpaid installments, and costs, and not


 

as to any accelerated indebtedness secured by the mortgage.

 

     (4) (3) If the party foreclosing a mortgage by advertisement

 

is not the original mortgagee, a record chain of title shall exist

 

prior to the date of sale under section 3216 evidencing the

 

assignment of the mortgage to the party foreclosing the mortgage.

 

     Sec. 3212. (1) Every notice of foreclosure by advertisement

 

shall include all of the following:

 

     (a) The names of the mortgagor, the original mortgagee, and

 

the foreclosing assignee, if any.

 

     (b) The date of the mortgage and the date the mortgage was

 

recorded.

 

     (c) The amount claimed to be due on the mortgage on the date

 

of the notice.

 

     (d) A description of the mortgaged premises that substantially

 

conforms with the description contained in the mortgage.

 

     (e) For a mortgage executed on or after January 1, 1965, the

 

length of the redemption period as determined under section 3240.

 

     (2) If the real estate that is the subject of the mortgage

 

being foreclosed is residential real estate, and if less than 18

 

months have passed since the mortgagor first failed to pay an

 

installment under the mortgage, the amount claimed to be due on the

 

mortgage under subsection (1) shall only include the installments

 

that are due and have not been paid, any interest on the unpaid

 

installments, and costs and shall not include any accelerated

 

indebtedness secured by the mortgage.