HOUSE BILL No. 6413

 

September 8, 2010, Introduced by Rep. Opsommer and referred to the Committee on Intergovernmental and Regional Affairs.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3140 and 3240 (MCL 600.3140 and 600.3240),

 

section 3140 as amended by 2004 PA 538 and section 3240 as amended

 

by 2006 PA 579.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3140. (1) The mortgagor, the mortgagor's heirs,

 

executors, or administrators heir or personal representative, or

 

any person lawfully claiming from or under the mortgagor or the

 

mortgagor's heirs, executors, or administrators heir or personal

 

representative may redeem the entire premises sold under section

 

3125 by paying, within 6 months from the time of after the sale, to

 

the purchaser or the purchaser's executors, administrators,

 

personal representative or assigns, or to the register of deeds in

 

whose office the deed of sale is deposited as provided in the court


 

rules , for the benefit of the purchaser, the sum which amount that

 

was bid with interest from the date of the sale at the interest

 

rate provided for by the mortgage.

 

     (2) The vendee of a land contract, the vendee's heirs,

 

executors, or administrators heir or personal representative, or

 

any person lawfully claiming from or under the vendee or the

 

vendee's heirs, executors, or administrators heir or personal

 

representative may redeem the entire premises sold under section

 

3125 within 6 months from the time of after the sale by paying to

 

the purchaser or the purchaser's executors, administrators,

 

personal representative or assigns, or to the register of deeds in

 

whose office the deed of sale is deposited as provided in the court

 

rules , for the benefit of the purchaser, the sum which amount that

 

was bid with interest from the date of the sale at the interest

 

rate provided for by the land contract.

 

     (3) The register of deeds shall not determine the amount

 

necessary for redemption to redeem property sold under section

 

3125. The purchaser shall attach an affidavit with to the deed to

 

be recorded under this section 3130 that states the exact amount

 

required to redeem the property, including any daily per diem

 

amounts. , and the date by which the property must be redeemed

 

shall be stated on the certificate of auctioneer. The purchaser may

 

include in the affidavit the name of a designee responsible on

 

behalf of the purchaser to assist the person redeeming a person who

 

wishes to redeem the property in computing the exact amount

 

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

 

does not exceed $50.00, as stated in the affidavit, and may be


 

authorized by the purchaser to receive money for redemption. funds.

 

The purchaser shall accept the amount computed by the designee.

 

     (4) If the sum money for redemption is paid to the register of

 

deeds, the person redeeming the property under subsection (1) or

 

(2) shall pay a fee of $5.00 shall be paid to the register of deeds

 

for the care and custody of the redemption money.

 

     (5) If payments are made as provided the amount necessary to

 

redeem the property is paid as required under this section, the

 

deed of sale is void. If a distinct lot or parcel separately sold

 

is redeemed, leaving a portion of the premises unredeemed, then the

 

deed of sale is void only as to the portion or portions of the

 

premises which that are redeemed.

 

     (6) The amount stated in any affidavits an affidavit recorded

 

under this section subsection (3) shall be the amount necessary to

 

satisfy the requirements for redemption under this section.

 

     Sec. 3240. (1) A purchaser's deed given under section 3232 is

 

void if the mortgagor, the mortgagor's heirs , executors, or

 

administrators or personal representative, or any person lawfully

 

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

 

or administrators or personal representative 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, personal representative 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 amount 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, if the payment is made to

 

the register of deeds, 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 that

 

does not exceed $50.00, as stated in the affidavit, and may be

 

authorized by the purchaser to receive redemption funds money to

 

redeem the property. The purchaser shall accept the amount computed

 

by the designee.

 

     (3) If a distinct lot or parcel separately sold under this

 

chapter is redeemed, leaving a portion of the premises unredeemed,

 

the deed shall be is void only to the redeemed parcel or parcels.

 

     (4) If after the sale of property under this chapter the

 

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

 

personal representative, or any person lawfully claiming under the

 

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


 

or personal representative 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 the property

 

is redeemed 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 a redemption payment in under subsection (4)

 

includes an amount used to redeem a senior lien from a nonjudicial

 

foreclosure, the mortgagor shall have has 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, and any

 

receipts, insurance receipts, and or insurance agent's affidavit

 

recorded under subsection (4) 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.

 

     (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.