SENATE BILL NO. 1366 November 12, 1998, Introduced by Senator BULLARD and referred to the Committee on Local, Urban and State Affairs. A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending section 3240 (MCL 600.3240), as amended by 1996 PA 214. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 3240. (1) A purchaser's deed is void if the mortgagor, 2 the mortgagor's heirs, executors, or administrators, or any 3 person lawfully claiming under the mortgagor, the mortgagor's 4 heirs, executors, or administrators redeems the entire premises 5 sold by paying the amount required under subsection (2), within 6 the applicable time limit prescribed in subsections (7) to (12), 7 to the purchaser, the purchaser's executors, administrators, or 8 assigns, or to the register of deeds in whose office the deed is 9 deposited for the benefit of the purchaser. 06204'98 a LBO 2 1 (2) The amount required to be paid under subsection (1) is 2 the sum that was bid for the entire premises sold, with interest 3 from the time of the sale at the rate percent borne by the mort- 4 gage, together with the amount of the sheriff's fee paid by the 5 purchaser under section 2558(2)(q), and an additional $3.00 as a 6 fee for the care and custody of the redemption money if the pay- 7 ment is made to the register of deeds. 8 (3) If a distinct lot or parcel separately sold is redeemed, 9 leaving a portion of the premises unredeemed, the deed shall be 10 inoperative only to the redeemed parcel or parcels, and to those 11 portions that have not been redeemed the deed shall remain 12 valid. 13 (4) If after the sale the purchaser, the purchaser's heirs, 14 executors, or administrators, or any person lawfully claiming 15 under the purchaser, the purchaser's heirs, executors, or admin- 16 istrators pays taxes assessed against the property, amounts nec- 17 essary to redeem senior liens from foreclosure, CONDOMINIUM 18 ASSESSMENTS, HOMEOWNER ASSOCIATION ASSESSMENTS, COMMUNITY ASSOCI- 19 ATION ASSESSMENTS, or premiums on an insurance policy covering 20 any buildings located on the property that under the terms of the 21 mortgage it would have been the duty of the mortgagor to pay if 22 the mortgage had not been foreclosed and that are necessary to 23 keep the policy in force until the expiration of the period of 24 redemption, redemption shall be made only upon payment of the sum 25 specified in subsection (2) plus the amounts specified in this 26 subsection with interest on the amounts specified in this 27 subsection from the date of the payment to the date of redemption 06204'98 a 3 1 at the rate specified in the mortgage, if all of the following 2 are filed with the register of deeds with whom the deed is 3 deposited: 4 (a) An affidavit by the purchaser or someone in his or her 5 behalf who has knowledge of the facts of the payment showing the 6 amount and items paid. 7 (b) The receipt or copy of the canceled check evidencing the 8 payment of the taxes, amounts necessary to redeem senior liens 9 from foreclosure, CONDOMINIUM ASSESSMENTS, HOMEOWNER ASSOCIATION 10 ASSESSMENTS, COMMUNITY ASSOCIATION ASSESSMENTS, or insurance 11 premiums. 12 (c) An affidavit of an insurance agent of the insurance com- 13 pany stating that the payment was made and what portion of the 14 payment covers the premium for the period prior to the expiration 15 of the period of redemption. 16 (5) If the redemption payment in subsection (4) includes an 17 amount used to redeem a senior lien from a nonjudicial foreclo- 18 sure, the mortgagor shall have the same defenses against the pur- 19 chaser with respect to the amount used to redeem the senior lien 20 as the mortgagor would have had against the senior lien. 21 (6) The register of deeds shall indorse on the documents 22 filed pursuant to subsection (4) the time they are received. The 23 register of deeds shall record the affidavit of the purchaser 24 only and shall preserve in his or her files the recorded affida- 25 vit, receipts, insurance receipts, and insurance agent's affida- 26 vit until expiration of the period of redemption. 06204'98 a 4 1 (7) For a mortgage executed on or after January 1, 1965, on 2 commercial or industrial property, or multifamily residential 3 property in excess of 4 units, the redemption period is 6 months 4 from the time of the sale. 5 (8) For a mortgage executed on or after January 1, 1965, on 6 residential property not exceeding 4 units and not more than 3 7 acres in size, if the amount claimed to be due on the mortgage at 8 the date of the notice of foreclosure is more than 66-2/3% of the 9 original indebtedness secured by the mortgage, the redemption 10 period is 6 months. 11 (9) For a mortgage on residential property not exceeding 4 12 units and not more than 3 acres in size, if the property is aban- 13 doned as determined pursuant to section 3241, the redemption 14 period is 3 months. 15 (10) For a mortgage on residential property not exceeding 4 16 units and not more than 3 acres in size, if the amount claimed to 17 be due on the mortgage at the date of the notice of foreclosure 18 is more than 66-2/3% of the original indebtedness secured by the 19 mortgage and the property is abandoned as determined pursuant to 20 section 3241, the redemption period is 1 month. 21 (11) If the property is abandoned as determined pursuant to 22 section 3241a, the redemption period is 30 days. 23 (12) In any other case, the redemption period is 1 year from 24 the date of the sale. 25 Enacting section 1. This amendatory act does not take 26 effect unless Senate Bill No. 1365 06204'98 a 5 1 of the 89th Legislature is 2 enacted into law. 06204'98 a Final page. LBO