SENATE BILL No. 350

 

 

March 10, 2009, Introduced by Senators CASSIS, SWITALSKI, JANSEN, HARDIMAN and PAPPAGEORGE and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 3240 (MCL 600.3240), as amended by 2006 PA 579.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

the mortgagor's heirs , executors, or administrators personal

 

representative, or any person lawfully claiming under the mortgagor

 

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

 

representative redeems the entire premises sold by paying the

 

amount required under subsection (2) and any amount required under

 

subsection (4), 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 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 Except as provided in

 

subsection (14), 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 personal representative, or any person

 

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

 

executors, or administrators 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 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 This subsection does not apply unless, 30 days or

 

more before the last day of the applicable redemption period if the

 

redemption period is more than 30 days or 10 days or more before

 

the last day of the applicable redemption period if the redemption

 

period is 30 days or less, 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 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.

 

     (14) The register of deeds of a county having a population of

 

more than 500,000 and less than 1,500,000 may determine the amount

 

necessary for redemption under subsection (2). A county, register

 

of deeds, or employee of a county or register of deeds is not

 

liable for damages proximately caused by an incorrect determination

 

of an amount necessary for redemption under subsection (2).

 

     (15) A register of deeds may charge not more than $50.00 for

 

determining the amount necessary for redemption under subsection

 

(2).