SENATE BILL No. 1645

 

 

November 13, 2008, Introduced by Senator CLARKE and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3130, 3208, and 3236 (MCL 600.3130, 600.3208,

 

and 600.3236) and by adding section 3108.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3108. On commencing an action under this chapter to

 

foreclose a mortgage of residential rental property, the plaintiff

 

shall give notice of the action to the tenants of the property by

 

ordinary mail.

 

     Sec. 3130. (1) The person making the sale under section 3125

 

shall execute deeds specifying the names of the parties in the

 

action, the date of the land contract or mortgage, when and where

 

it was recorded, a description of the premises sold, and the amount

 


for which each parcel of land described in the deed was sold. ; and

 

he The person shall indorse upon each deed the time it becomes

 

operative if the premises are not redeemed according to law. Unless

 

the premises or any parcel of them the premises are redeemed within

 

the time limited for redemption, the deed shall become becomes

 

operative as to all parcels not redeemed , and, shall vest subject

 

to subsection (3), vests in the grantee named in the deed , his and

 

the grantee's heirs , or assigns all the right, title, and interest

 

which the mortgagor had at the time of the execution of the

 

mortgage or at any time thereafter.

 

     (2) The deed of sale as As soon as practicable and within 20

 

days after the sale, a deed of sale executed under this section

 

shall be deposited with the register of deeds of the county in

 

which the land therein described in the deed is situated. , and the

 

The register shall indorse upon the deed the time it was received,

 

and shall record the deed at length in a book to be provided kept

 

in his the register's office for that purpose, and shall index the

 

deed in the regular index of deeds. , and the The fee for recording

 

the deed shall be included among the other costs and expenses

 

allowed by law. If the premises or any parcel of them the premises

 

are is redeemed, the register of deeds shall write "redeemed" on

 

the face of the record the work "Redeemed" and he shall write at

 

what the date the entry is made and shall sign the entry. with his

 

official signature.

 

     (3) If the sale under section 3115 is pursuant to the

 

foreclosure of a mortgage and if the property described in a deed

 

executed under this section is residential rental property, the

 


grantee named in the deed has the rights and obligations of the

 

mortgagor under any lease of the property that is in effect at the

 

time the deed becomes operative.

 

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

 

under this chapter by a sale of the mortgaged premises, or some

 

part of them, shall be given by publishing the same notice 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

 

newspaper is 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) If the mortgaged premises includes residential rental

 

property, a true copy of the notice published under this section

 

shall be provided to the tenants of the property by ordinary mail

 

within 15 days after the first publication of the notice.

 

     Sec. 3236. (1) Unless the premises described in such a deed

 

shall be executed under section 3232 are redeemed within the time

 

limited for such redemption as hereinafter provided in this

 

chapter, such the deed shall thereupon become becomes operative ,

 

and, shall vest subject to subsection (2), vests in the grantee

 

therein named , his in the deed or the grantee's heirs or assigns ,

 

all the right, title, and interest which that the mortgagor had at

 

the time of the execution of the mortgage was executed, or at any

 

time thereafter after the mortgage was executed, except as to any

 


parcel or parcels which may have with respect to which the deed has

 

been redeemed and canceled, as hereinafter provided ; and the in

 

this chapter. The record thereof of the deed shall thereafter , for

 

all purposes be deemed considered a valid record of said the deed

 

without being re-recorded rerecorded, but no a person having any

 

who has a valid subsisting lien upon the mortgaged premises, or any

 

part thereof of the mortgaged premises, created before the lien of

 

such the mortgage took effect, shall not be prejudiced by any such

 

the sale, nor shall his the person's rights or interests be in any

 

way affected thereby by the sale.

 

     (2) If the property described in a deed executed under this

 

section is residential rental property, the grantee named in the

 

deed has the rights and obligations of the mortgagor under any

 

lease of the property that is in effect at the time the deed

 

becomes operative.