SENATE BILL No. 992

 

 

December 1, 2009, Introduced by Senator BROWN and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1966 PA 346, entitled

 

"State housing development authority act of 1966,"

 

by amending sections 48g, 48i, 48j, 49h, 49j, 49m, and 49s (MCL

 

125.1448g, 125.1448i, 125.1448j, 125.1449h, 125.1449j, 125.1449m,

 

and 125.1449s), sections 48g, 48j, 49h, 49m, and 49s as added by

 

1981 PA 173 and sections 48i and 49j as amended by 2004 PA 540; and

 

to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 48g. (1) The person making the sale under section 48f

 

shall execute deeds specifying the names of the parties in the

 

action, the date of the land contract or mortgage held by the

 

authority, 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 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 vests in the grantee named in

 

the deed or his or her 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 was executed or at any time

 

thereafter after the mortgage was executed.

 

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

 

days after the a sale under section 48f, the deed of sale shall be

 

deposited with the register of deeds of the county in which the

 

land described in the deed of sale 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 in his or

 

her office for that purpose and shall index the deed in the regular

 

general index of deeds, and the records. 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 are redeemed the

 

register of deeds shall write on the face of the record the word

 

"redeemed" and shall write at what date the entry is made and sign

 

the entry with his or her official signature.

 

     Sec. 48i. (1) The mortgagor, the mortgagor's heirs, executors,

 

administrators, heir or personal representative, or any person

 

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

 

executors, or administrators heir or personal representative may

 


redeem the entire premises sold under section 48f by paying, within

 

6 months from after the date of 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 recorded 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, administrators heir or personal representative, or any

 

person lawfully claiming under the vendee of a land contract or the

 

vendee's heirs, executors, or administrators of a land contract

 

heir or personal representative may redeem the entire premises sold

 

under section 48f within 6 months from after the date of 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

 

recorded 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. In case the sum

 

     (3) If money for redemption is paid to the register of deeds ,

 

the sum of $5.00 shall be paid to the register of deeds as a fee

 

under this section, the person redeeming the property under

 

subsection (1) or (2) shall pay a fee of $10.00 to the register of

 

deeds for the care and custody of the redemption money.

 

     (4) A person who redeems property under subsection (1) or (2)

 


by paying the redemption money to the register of deeds shall

 

deliver to the register of deeds with the money a notice to the

 

purchaser or designee under subsection (8) that contains all of the

 

following information:

 

     (a) The name and address of the purchaser or designee.

 

     (b) The name and address of the person paying the money to

 

redeem the property.

 

     (c) The amount paid and the date on which it was paid to the

 

register.

 

     (d) The liber and page number, or other unique identifying

 

number, where the deed of sale given under section 48f is recorded.

 

     (e) A statement of the requirements of subsection (6).

 

     (5) On receiving a notice under subsection (4), the register

 

of deeds shall record the notice and then mail a copy of the

 

recorded notice to the purchaser or designee at the address given

 

in the notice by certified mail, return receipt requested.

 

     (6) Within 14 days after receiving the notice under subsection

 

(5), the purchaser or designee shall respond to the register of

 

deeds by doing 1 of the following:

 

     (a) If the amount paid for redemption is sufficient to redeem

 

the property, signing and recording a quitclaim deed or other

 

instrument sufficient to release the purchaser's interest in the

 

property to the person paying the money. The purchaser or designee

 

shall include in the deed the liber and page number, or other

 

unique identifying number, where the deed of sale from which the

 

property is being redeemed is recorded. On recording a quitclaim

 

deed or other instrument under this subdivision, the register of

 


deeds shall note in the index entry the liber and page number, or

 

other unique identifying number, included in the deed pursuant to

 

this subdivision.

 

     (b) If the amount paid for redemption is not sufficient to

 

redeem the property, notifying the person paying the money under

 

subsection (1) or (2) that the amount paid was insufficient and

 

advising the person that if the person who paid the money believes

 

the amount paid was sufficient, the person may seek relief from the

 

court.

 

     (7) (3) Upon the payment of sums the amount required to redeem

 

the property 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.

 

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

 

necessary for redemption to redeem property sold under section 48f.

 

The purchaser shall attach an affidavit with to the deed to be

 

recorded under section 48g 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 in

 

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 a person who wishes to redeem 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 money for

 


redemption. funds. The purchaser shall accept the amount computed

 

by the designee.

 

     (9) (4) The amount stated in any affidavits an affidavit

 

recorded under this section subsection (8) shall be the amount

 

necessary to satisfy the requirements for redemption under this

 

section.

 

     (10) A purchaser or designee who fails to respond as required

 

by subsection (6) is liable to the person paying the money in the

 

amount of $1,000.00.

 

     Sec. 48j. (1) The A court may make include a provision in any

 

a judgment of foreclosure for the adding to the amount determined

 

in the judgment to be due, any sum or sums paid at any time that if

 

the purchaser at the foreclosure sale pays either of the following

 

after the foreclosure sale and prior to before the expiration of

 

the period of redemption and if under the terms of the mortgage or

 

land contract it would have been the duty of the defendants

 

determined to be personally liable under section 48k to make the

 

payment had the mortgage or land contract not been foreclosed, as

 

taxes the amount paid shall be added to the amount determined to be

 

due in the judgment:

 

     (a) Taxes assessed against the property. or the portion of the

 

     (b) A premium of any for an insurance policy covering any

 

buildings located on the premises as is required necessary to keep

 

the policy in force until the expiration of the period of

 

redemption. or both the taxes assessed the property and the portion

 

of the premium of any insurance policy covering any buildings

 

located on the premises as is required to keep the policy in force

 


until the expiration of the period of redemption, if under the

 

terms of the mortgage it would have been the duty of the defendants

 

determined to be personally liable to have paid the taxes or

 

insurance premium had the mortgage not been foreclosed. In case of

 

any such

 

     (2) If a payment which is made prior to under subsection (1)

 

before the entry of the order confirming the report of sale by the

 

person making the sale, determination of the additional liability

 

shall be made in the order. In case of any such If a payment is

 

made under subsection (1) after the entry of the order, proof of

 

the payment may be made by filing recording with the register of

 

deeds with whom the deed of sale is deposited, recorded an

 

affidavit of payment by the purchaser or someone in his or her on

 

behalf having of the purchaser who has knowledge of the facts

 

together with a and that includes the statement under subsection

 

(3). The purchaser or person acting on behalf of the purchaser

 

shall also record either of the following, as applicable:

 

     (a) A receipt evidencing the payment of the taxes. , or, in

 

case of insurance premiums, an

 

     (b) An affidavit of an agent of the insurance company stating

 

the making of that the payment was made and also what portion of

 

the payment covers the premium for the period prior to before the

 

expiration of the period of redemption. Redemption shall not be

 

effected after the determination, or filing of

 

     (3) An affidavit of a purchaser or person acting on behalf of

 

a purchaser under subsection (2) shall include a statement of the

 

exact additional amount required to redeem the property under this

 


section, including any per diem amount, if applicable.

 

     (4) If an affidavit and receipt , or affidavits , as the case

 

may be, except upon payment of are recorded under subsection (2),

 

the property is not redeemed unless the additional sum or sums

 

amount is paid. In case If the property is not redeemed, the taxes

 

or insurance premiums paid after the confirmation of sale shall not

 

be added to or included in the deficiency judgment.

 

     Sec. 49h. (1) The officer or person making the sale of

 

property under sections 49 to 49v shall forthwith immediately

 

execute, acknowledge, and deliver , to each purchaser a deed of the

 

premises bid off. by the officer or person making the sale; and if

 

If the lands are situated in several counties, the officer or

 

person making the sale shall make separate deeds of the lands in

 

each county , and specify in each deed the precise amount for which

 

each parcel of land described in the deed was sold. The officer or

 

person making the sale shall endorse upon each deed the time when

 

the deed becomes operative , if the premises are not redeemed

 

according to law. Each deed shall, as

 

     (2) As soon as practicable, and within 20 days after such the

 

sale, a deed made under subsection (1) shall be deposited recorded

 

with the register of deeds of the county in which the land

 

described in the deed is situated. , and the The register shall

 

endorse on the deed the time the deed it was received, and for the

 

better preservation thereof, shall record the deed at length in a

 

book to be provided in his or her office for that purpose; it, and

 

shall index the deed it in the regular general index of deeds

 

records. The fee for recording the deed shall be included among

 


with the other costs and expenses allowed by law. In case such If

 

the premises shall be are redeemed, the register of deeds shall ,

 

at the time of destroying the deed, as provided in section 49l,

 

write on the face of the record the word "redeemed", stating at

 

what date the entry is made, and signing the entry with his or her

 

official signature note in the index to records the liber and page

 

number, or other unique identifying number, where the deed is

 

recorded and indexed that the property has been redeemed and the

 

date of the redemption.

 

     Sec. 49j. (1) If the mortgagor, the mortgagor's heirs,

 

executors, administrators, heir or personal representative, or any

 

person lawfully claiming under the mortgagor or the mortgagor's

 

heirs, executors, or administrators, heir or personal

 

representative redeems the entire premises sold under sections 49

 

to 49v within the time prescribed in this section 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 is deposited recorded for the benefit of the

 

purchaser, the sum which amount that was bid for the premises, with

 

interest from the date of the sale at the interest rate provided

 

for by the mortgage, and, in case if the payment is made to the

 

register of deeds, the sum of $5.00 $10.00 as a fee for the care

 

and custody of the redemption money, then the deed is void. If a

 

distinct lot or parcel separately sold is redeemed, leaving a

 

portion of the premises unredeemed, then the deed is void only as

 

to the parcel or parcels redeemed. The register of deeds shall not

 

determine the amount necessary for redemption. The purchaser shall

 


attach an affidavit with the deed to be recorded 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 in 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 money to redeem the property. The

 

purchaser shall accept the amount computed by the designee.

 

     (2) If, following after the sale of property under sections 49

 

to 49v, the purchaser pays any taxes assessed against the property

 

or insurance premiums covering any buildings located on the

 

property which that under the terms of the mortgage were the duty

 

of the mortgagor to pay and are necessary to keep the policy in

 

force until the expiration of the period of redemption, and the

 

purchaser or a representative of the purchaser having knowledge of

 

the facts may make an affidavit of the payment showing the amount

 

and items paid , together with the receipt of payment of the taxes

 

or insurance premiums, together with an affidavit of an insurance

 

agent of the insurance company stating the making of the payment

 

and also what portion of the policy covers the premium for the

 

period before the expiration of the period of redemption, the

 

affidavits and the receipt and the exact amount that is required to

 

redeem the property under subsection (1), including any per diem

 

amount, if applicable. The person making the affidavit shall be

 


filed file the affidavit with the register of deeds with whom the

 

deed is deposited, who recorded and attach to the affidavit the

 

receipt of payment of the taxes or insurance premiums and an

 

affidavit of an insurance agent of the insurance company stating

 

that the payment was made and also what portion of the payment

 

covers the premium for the period before the expiration of the

 

period of redemption. The register of deeds shall endorse on the

 

deed the time the affidavits and receipt were other documents are

 

received . The register of deeds shall and record the affidavit of

 

the purchaser only and file the recorded affidavit, together with

 

the tax and insurance receipts and insurance agent's affidavit,

 

until expiration of the period of redemption affidavits and other

 

documents.

 

     (3) After the a purchaser's affidavit is recorded under this

 

section, redemption shall the property is redeemed only be made

 

upon payment of the sum amounts specified in subsections (1) and

 

(2), with interest on the amount, amounts from the date of the

 

payment to the date of redemption , at the interest rate specified

 

in the mortgage.

 

     (4) In the case of Subject to subsections (6) to (8), for a

 

mortgage executed on commercial or industrial property, or

 

multifamily residential property in excess of 4 units, the

 

redemption period is 6 months from the time of the sale.

 

     (5) In the case of Subject to subsections (6) to (8), for a

 

mortgage executed 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.

 

     (6) In the case of Subject to subsection (7), for a mortgage

 

on residential property not exceeding 4 units and not more than 3

 

acres in size, if the property is abandoned as determined under

 

section 49k, the redemption period is 3 months.

 

     (7) In the case of For any mortgage 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 and the property is abandoned as determined

 

under section 49k, the redemption period is 1 month.

 

     (8) If the property is abandoned as determined under section

 

49v, the redemption period is 30 days.

 

     (9) In any other case not otherwise described in this section

 

If subsections (4) to (8) do not apply, the redemption period is 1

 

year from the date of the sale.

 

     (10) If an automation fund is established in the county under

 

section 2568 of the revised judicature act of 1961, 1961 PA 236,

 

MCL 600.2568, any fees or charges collected by the register of

 

deeds under this section or section 48i shall be credited to the

 

automation fund.

 

     (11) The amount stated in any affidavits recorded under this

 

section shall be the amount necessary to satisfy the requirements

 

for redemption under this section.

 

     Sec. 49m. If any A person entitled to receive such redemption

 

moneys money under sections 49 to 49v who, shall, upon payment or

 


tender thereof of the money to him or her, refuse refuses to make

 

and acknowledge such certificate of payment, he or she shall be

 

sign and record a quitclaim deed or other instrument sufficient to

 

release the purchaser's interest in the property as required by

 

section 49s is liable to the person aggrieved thereby, by the

 

refusal in the sum amount of $100.00 damages, over and above all

 

the $1,000.00 plus any actual damages sustained. , to be recovered

 

in The aggrieved person may recover the amount in a civil action. ,

 

except that no damages of any kind may be recovered from any A

 

register of deeds who refuses to accept tender of payment after the

 

time indorsed endorsed upon the deed when the deed becomes

 

operative in case the premises are not redeemed, and the under

 

section 49h is not liable for any damages caused by the refusal. An

 

officer or person making the a sale shall be of property under

 

sections 49 to 49v is entitled to rely conclusively upon the

 

recital of the length of the redemption period contained in the

 

notice of foreclosure in making such indorsement the endorsement

 

upon the deed under section 49h.

 

     Sec. 49s. (1) Upon the payment of the entire sum bid at such

 

sale, and the interest thereon and expenses, as mentioned in

 

section 49j, to the register of deeds of the county in whose office

 

the sheriff's deed shall have been deposited, the register of deeds

 

shall give notice of such payment, by mail or otherwise to the

 

purchaser or his or her agent or attorney. A person who redeems

 

property under section 49j by paying the redemption money to the

 

register of deeds shall deliver to the register of deeds with the

 

money a notice to the purchaser or a person designated under

 


section 49j(1) that contains all of the following information:

 

     (a) The name and address of the purchaser or designee.

 

     (b) The name and address of the person paying the money to

 

redeem the property.

 

     (c) The amount paid and the date on which it was paid to the

 

register.

 

     (d) The liber and page number, or other unique identifying

 

number, where the deed of sale given under section 49h is recorded.

 

     (e) A statement of the requirements of subsection (3).

 

     (2) On receiving a notice under subsection (1), the register

 

of deeds shall record the notice and then mail a copy of the notice

 

recorded to the purchaser or the designee at the address given in

 

the notice by certified mail, return receipt requested.

 

     (3) Within 14 days after receiving the notice under subsection

 

(2), the purchaser or designee shall respond to the register of

 

deeds by doing 1 of the following:

 

     (a) If the amount paid for redemption is sufficient to redeem

 

the property, signing and recording a quitclaim deed or other

 

instrument sufficient to release the purchaser's interest in the

 

property to the person paying the money. The purchaser or designee

 

shall include in the deed the liber and page number or other unique

 

identifying number where the deed of sale from which the property

 

is being redeemed is recorded. On recording a quitclaim deed or

 

other instrument under this subdivision, the register of deeds

 

shall note in the index entry the liber and page number, or other

 

unique identifying number, included in the deed pursuant to this

 

subdivision.

 


     (b) If the amount paid for redemption is not sufficient to

 

redeem the property, notifying the person paying the money that the

 

amount paid was insufficient and advising the person that if the

 

person who paid the money believes the amount paid was sufficient,

 

the person may seek relief from the appropriate court.

 

     (4) A purchaser or designee who fails to respond as required

 

by subsection (3) is liable to the person paying the money in the

 

amount of $1,000.00.

 

     Enacting section 1. Section 49l of the state housing

 

development authority act of 1966, 1966 PA 346, MCL 125.1449l, is

 

repealed.