September 28, 2011, Introduced by Rep. Farrington 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 3204 and 3212 (MCL 600.3204 and 600.3212),


section 3204 as amended by 2011 PA 72 and section 3212 as amended


by 2004 PA 186.




     Sec. 3204. (1) Subject to subsection (4), 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




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


not the original mortgagee, a record chain of title containing each


assignment of the mortgage, including the most recent assignment,


shall exist prior to the date of sale under section 3216 evidencing


the assignment of the mortgage to the party foreclosing the


mortgage be recorded with the register of deeds before proceedings


to foreclose the mortgage are commenced under this chapter.


     (4) A party shall not commence proceedings under this chapter


to foreclose a mortgage of property described in section 3205a(1)


if 1 or more of the following apply:


     (a) Notice has not been mailed to the mortgagor as required by


section 3205a.


     (b) After a notice is mailed to the mortgagor under section


3205a, the time for a housing counselor to notify the person


designated under section 3205a(1)(c) of a request by the mortgagor


under section 3205b(1) has not expired.


     (c) Within 14 days after a notice is mailed to the mortgagor


under section 3205a, the mortgagor has requested a meeting under


section 3205b with the person designated under section 3205a(1)(c)


and 90 days have not passed after the notice was mailed.


     (d) The mortgagor has requested a meeting under section 3205b


with the person designated under section 3205a(1)(c), the mortgagor


has provided documents if requested under section 3205b(2), and the


person designated under section 3205a(1)(c) has not met or


negotiated with the mortgagor under this chapter.


     (e) The mortgagor and mortgagee have agreed to modify the


mortgage loan and the mortgagor is not in default under the


modified agreement.


     (f) Calculations under section 3205c(1) show that the


mortgagor is eligible for a loan modification and foreclosure under


this chapter is not allowed under section 3205c(7).


     (5) Subsection (4) applies only to proceedings under this


chapter in which the first notice under section 3208 is published


after July 5, 2009 and before January 5, 2012.


     Sec. 3212. Every notice of foreclosure by advertisement shall


include all of the following:


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


each assignee, including the foreclosing assignee, if any the


mortgage has been assigned.


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


recorded, the date of each assignment, and the date each assignment


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.