April 25, 2012, Introduced by Senators JONES, NOFS, HILDENBRAND, BIEDA, BRANDENBURG, PROOS, MOOLENAAR, PAPPAGEORGE and SCHUITMAKER and referred to the Committee on Judiciary.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 2803, 2805, 2807, 2811, and 2819 (MCL
600.2803, 600.2805, 600.2807, 600.2811, and 600.2819), as added by
2004 PA 136.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2803. (1) A judgment lien attaches to a judgment debtor's
interest in real property if a notice of judgment lien is recorded
in accordance with this chapter in the land title records of the
of deeds for the county
which the property is
located. The judgment lien attaches at the time the notice of
judgment lien is recorded or, for after acquired property, at the
time the judgment debtor acquires the interest in the property.
(2) At the request of the judgment creditor, the fee charged
by a register of deeds for recording a notice of judgment lien
shall be taxed and awarded as a cost against the judgment debtor.
Sec. 2805. (1) The clerk of a court that entered a judgment
shall certify a notice of judgment lien that has been filed with
the court and that includes all of the following:
(a) The case caption and docket number.
(b) The current name and address of the judgment creditor and,
if the judgment creditor has an attorney, the attorney.
(c) The name, last 4 digits of the social security or tax
identification number, and last known address of the judgment
(d) The current balance due on the judgment.
(e) The date the judgment was entered, the expiration date of
the judgment, and the expiration date of the judgment lien.
(f) The signature of the judgment creditor or the judgment
(2) A notice of judgment lien need not include a legal
description of the debtor's interest in real property.
Except as provided by subsection (4), a A copy of a notice
of judgment lien that has been certified under subsection (1) shall
mail on the judgment debtor at
the judgment debtor's last known address. Proof of service shall be
filed with the court that issued the judgment.
If the judgment that is the subject of the judgment lien is
for $25,000.00 or more, a copy of a notice of judgment lien that has
been certified under subsection (1) shall be personally served on
the judgment debtor and proof of service filed with the court that
issued the judgment.
Sec. 2807. (1) A judgment lien does not attach to an interest
in real property owned as tenants by the entirety unless the
underlying judgment is entered against both the husband and wife.
(2) With the following exceptions, and subject to section
2819, a judgment lien has priority over a lien recorded with the
register of deeds after the notice of judgment lien is recorded:
(a) A purchase money mortgage.
(b) A mortgage to the extent that proceeds of the mortgage are
used to pay 1 or more of the following:
(i) Purchase money mortgage debt.
(ii) A subsequent refinancing of purchase money mortgage debt.
(iii) A nonpurchase money mortgage recorded before attachment of
the judgment lien.
(c) A lien that secures an advance made under a previously
recorded future-advance mortgage.
(d) A lien that has or acquires priority by operation of law.
(e) A claim of lien recorded with the register of deeds under
section 111 of the construction lien act, 1980 PA 497, MCL
(f) A lien for unpaid assessments or charges due to a
condominium association, homeowners' association, or property
owners' association that arises from or pursuant to recorded
restrictions that run with the land.
(g) A state or federal tax lien.
(3) If property subject to a judgment lien recorded under this
chapter is sold or refinanced, proceeds of the sale or refinancing
due to a judgment creditor are limited to the judgment debtor's
equity in the property at the time of the sale or refinancing after
all liens senior to the judgment lien, property taxes, and costs
and fees necessary to close the sale or refinancing are paid or
Sec. 2811. (1) Within 28 days after payment in full of the
amount due on a judgment that is the basis for a judgment lien, the
judgment creditor or the judgment creditor's attorney shall record
a discharge of judgment lien with the office of the register of
where with which the judgment lien is recorded.
(2) If payment on a judgment lien is made from the judgment
as described in from
proceeds of the parcel or
parcels of property sold under section 2807(3) and is not payment
in full of the amount due on the lien, the judgment creditor or the
judgment creditor's attorney shall record a partial discharge of
judgment lien for the amount paid.
(3) A partial discharge of judgment lien under subsection (2)
shall include the legal description of the parcel or parcels sold
and shall fully release the parcel or parcels from the lien.
as provided in subsection (2),
there is no right to foreclose a judgment lien created under this
chapter. At the time the judgment debtor makes a conveyance, as
that term is defined in section 35 of 1846 RS 65, MCL 565.35, of,
sells under an executory contract, or refinances the interest in
real property that is subject to the judgment lien, the judgment
debtor shall pay the amount due to the judgment creditor, as
determined under section 2807(3), to the judgment creditor.
(2) If a judgment debtor conveys, sells, or refinance real
property encumbered by a judgment lien and does not pay the amount
due to the judgment creditor as required by subsection (1), the
judgment lien continues to encumber the real property with priority
over all interests perfected after the judgment lien, including any
lien, deed, encumbrance, or mortgage that results from the
conveyance, sale, or refinancing, and the judgment creditor may
foreclose the judgment lien on the real property as provided in
this section. On foreclosure, the judgment creditor may recover the
amount that was due to the judgment creditor under subsection (1)
and both of the following:
(a) Interest on the amount from the date that payment was due
at the applicable judgment interest rate.
(b) Costs incurred in the foreclosure process.
(3) A judgment creditor foreclosing a judgment lien under
subsection (2) shall obtain, in the action in which the judgment
was entered, a determination of the amount the judgment creditor is
entitled to recover through foreclosure because of the nonpayment
of the amount due under subsection (1) and a determination of which
interests in the property, recorded before the foreclosure
proceeding is commenced, are inferior in priority to the
foreclosure rights of the judgment creditor. The court's
determination of the amount the judgment creditor is entitled to
recover through foreclosure and the priority as to other claimants
in the property shall be obtained in a proceeding supplementary to
judgment in the same manner as title to property is determined in
supplementary proceedings under section 6128. If the judgment
creditor asserts a priority over an interest in the property and
the person holding that interest is not a party to the action, the
court shall by show cause order or otherwise order the person to be
made a party to the action and set the proceeding for an early
(4) After a determination under subsection (3) in favor of a
judgment creditor has become final, the judgment creditor may
proceed with a foreclosure sale by advertisement of the property to
collect the amount the judgment creditor was entitled to receive
under subsection (1), interest, and court and foreclosure costs.
The foreclosure sale by advertisement shall be conducted in the
manner provided in this section by the sheriff of the county in
which the property is located or by another officer from the
sheriff's office. For services relating to posting of public
notices and conducting a sale of the property, the sheriff or
officer may charge the same amounts as allowed for those services
in regard to a mortgage sale by foreclosure.
(5) Before the sale of real property in foreclosing a judgment
lien, notice that describes the real property with common certainty
by stating the name or number of the township or city in which it
is located and the number of the lot, or by other appropriate
description of the property, and that gives the time and place of
the sale shall be given as follows:
(a) A written or printed notice shall be displayed in 3 public
places in the township or city where the real property is located
at least 6 weeks before the sale.
(b) A copy of the notice shall be published once each week for
the 6 successive weeks before the sale in a newspaper printed in
the county in which the property is located or, if there is no such
newspaper, in a newspaper printed in an adjoining county.
(c) If the sheriff or other officer adjourns the sale for more
than 1 week, he or she shall give notice in the newspaper in which
the original notice was published and shall continue to publish
notices weekly throughout the adjournment. Notice of adjournment
shall also be displayed throughout the adjournment at the place
where the sale is to be held. If there is an adjournment of 1 week
or less, posting the adjournment at the place of the sale is
sufficient notice of the adjournment.
(6) A sale of real property in foreclosing a judgment lien
shall be by public sale between 9 a.m. and 4 p.m. at the place
where the circuit court is located in the county in which the real
property to be sold is located. The property shall be sold to the
highest bidder. The sheriff or other officer conducting the sale
may adjourn the sale for reasonable cause and for a reasonable
period. The same requirements for prompt payment of the purchase
price by the bidder that apply to mortgage foreclosures by
advertisement or execution sales of real property apply to
successful bidders at a sale in foreclosing a judgment lien. The
judgment creditor, an assignee of the judgment creditor, or a legal
representative of the judgment creditor or the assignee may, fairly
and in good faith, purchase the real property at the sale. A
judgment creditor, assignee, or legal representative who purchases
the property may apply the amount determined to be owing to the
judgment creditor under subsection (3) against the bid made by the
judgment creditor, assignee, or legal representative and is only
required to pay money to the sheriff or officer if the bid exceeds
the amount determined to be owing.
(7) Before the date of a scheduled foreclosure sale under this
section, the judgment debtor or any person whose interest in the
property would be wholly or partially eliminated by a final
foreclosure sale may cause the foreclosure sale to be canceled by
paying to the judgment creditor or the judgment creditor's attorney
by cashier's check the amount determined by the court under
subsection (3) and interest and costs to the date of the payment.
(8) If real property is sold under subsection (6), the sheriff
or other officer conducting the sale shall pay the proceeds of the
sale, up to the amount due to the judgment creditor as determined
by the court under subsection (3), to the judgment creditor. The
sheriff or other officer conducting the sale shall pay any
remaining sale proceeds to the persons whose interests in the
property have been eliminated by the foreclosure sale in the order
of the priority of their interests in the property.
(9) After the sale of real property to foreclose a judgment
lien, the sheriff or other officer conducting the sale shall sign
as many certificates of the sale as are necessary, that contain all
of the following information:
(a) A particular description of the property sold.
(b) The price bid for each distinct lot or parcel sold.
(c) The consideration paid for each lot or parcel.
(10) The sheriff or other officer conducting the sale shall
deliver a certificate under subsection (9) to each purchaser at the
sale and, within 10 days after the sale, file 1 of the certificates
to be recorded in the office of the register of deeds of the county
in which the property is located. The register of deeds shall
record the certificate in a book kept for that purpose. The
original certificate, a record of the certificate, or a transcript
of the record, certified by the register of deeds, is prima facie
evidence of the facts contained in the deed, of the regularity of
the sale, and of all proceedings in the action before the sale. The
sheriff or other officer conducting the sale shall also, within 10
days after the sale, provide to the purchaser at the sale a
sheriff's deed making a final conveyance of the real property to
(11) A sheriff or other officer who, after the fees specified
in this section have been tendered, neglects or refuses any of the
services required by this section is liable to the party injured
for all damages the party sustains because of that neglect or
(12) A person who removes or defaces a notice of sale
displayed under subsection (5) without authorization is liable to
the judgment creditor for $50.00 or more per instance plus the
amount of actual damages sustained by the judgment creditor.