SB-0929, As Passed Senate, December 2, 2004
SUBSTITUTE FOR
SENATE BILL NO. 929
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 3140, 3240, 6062, and 6066 (MCL 600.3140,
600.3240, 600.6062, and 600.6066), section 3240 as amended by
2000 PA 380; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 3140. (1)
The mortgagor, his the mortgagor's heirs,
2 executors, or administrators, or any person lawfully claiming
3 from or under him or
them the mortgagor or the mortgagor's
4 heirs, executors, or administrators may redeem the entire
5 premises sold by paying, within 6 months from the time of the
6 sale, to the purchaser ,
his or the purchaser's executors,
7 administrators, or assigns, or to the register of deeds in whose
8 office the deed of sale is deposited as provided in the court
9 rules, for the benefit of the purchaser, the sum which was bid
1 with interest from the time
date of the sale at the interest
2 rate percent borne provided
for by the mortgage.
3 (2) The vendee
of a land contract, his the vendee's heirs,
4 executors, or administrators, or any person lawfully claiming
5 from or under him or
them the vendee or the vendee's heirs,
6 executors, or administrators may redeem the entire premises sold
7 within 6 months from the time of the sale by paying to the
8 purchaser , his or
the purchaser's executors, administrators,
9 or assigns, or to the register of deeds in whose office the deed
10 of sale is deposited as provided in the court rules, for the
11 benefit of the purchaser, the sum which was bid with interest
12 from the time date
of the sale at the interest rate percent
13 borne provided for by the land contract. In
case If the sum
14 is paid to the register
of deeds, the sum of $5.00 shall be paid
15 to him as a fee of $5.00 shall be paid for the care and
custody
16 of the redemption money.
After these sums have been paid The
17 register of deeds shall not determine the amount necessary for
18 redemption. The purchaser shall include an affidavit with the
19 recorded deed that states the exact amount required to redeem the
20 property, including any daily per diem amounts, and the date by
21 which the property must be redeemed shall be stated on the
22 certificate of auctioneer.
23 (3) If payments are made as provided under this section, the
24 deed of sale is void.
and of no effect, but in case any If a
25 distinct lot or parcel separately sold is redeemed, leaving a
26 portion of the premises unredeemed, then the deed of sale is
27 inoperative merely void only as to the portion or portions of
1 the premises which are
redeemed. and to the portions not
2 redeemed it remains
valid and of full effect.
3 Sec. 3240. (1) A purchaser's deed is void if the mortgagor,
4 the mortgagor's heirs, executors, or administrators, or any
5 person lawfully claiming
under the mortgagor , or the
6 mortgagor's heirs, executors, or administrators redeems the
7 entire premises sold by paying the amount required under
8 subsection (2), within the applicable time limit prescribed in
9 subsections (7) to (12),
to the purchaser , or the purchaser's
10 executors, administrators, or assigns, or to the register of
11 deeds in whose office the deed is deposited for the benefit of
12 the purchaser.
13 (2) The amount required to be paid under subsection (1) is
14 the sum that was bid for the entire premises sold, with interest
15 from the time date
of the sale at the interest rate percent
16 borne provided for by the mortgage, together with
the amount of
17 the sheriff's fee paid by the purchaser under section 2558(2)(q),
18 and an additional $3.00 as a fee for the care and custody of the
19 redemption money if the payment is made to the register of
20 deeds.
21 (3) If a distinct lot or parcel separately sold is redeemed,
22 leaving a portion of the premises unredeemed, the deed shall be
23 inoperative void only to the redeemed parcel or parcels.
, and
24 to those portions that
have not been redeemed the deed shall
25 remain valid.
26 (4) If after the sale the purchaser, the purchaser's heirs,
27 executors, or administrators, or any person lawfully claiming
1 under the purchaser ,
or the purchaser's heirs, executors, or
2 administrators pays taxes assessed against the property, amounts
3 necessary to redeem senior liens from foreclosure, condominium
4 assessments, homeowner association assessments, community
5 association assessments, or premiums on an insurance policy
6 covering any buildings located on the property that under the
7 terms of the mortgage it would have been the duty of the
8 mortgagor to pay if the mortgage had not been foreclosed and that
9 are necessary to keep the policy in force until the expiration of
10 the period of redemption, redemption shall be made only upon
11 payment of the sum specified in subsection (2) plus the amounts
12 specified in this subsection with interest on the amounts
13 specified in this subsection from the date of the payment to the
14 date of redemption at the interest rate specified in the
15 mortgage, if all of the following are filed with the register of
16 deeds with whom the deed is deposited:
17 (a) An affidavit by the purchaser or someone in his or her
18 behalf who has knowledge of the facts of the payment showing the
19 amount and items paid.
20 (b) The receipt or copy of the canceled check evidencing the
21 payment of the taxes, amounts necessary to redeem senior liens
22 from foreclosure, condominium assessments, homeowner association
23 assessments, community association assessments, or insurance
24 premiums.
25 (c) An affidavit of an insurance agent of the insurance
26 company stating that the payment was made and what portion of the
27 payment covers the
premium for the period prior to before the
1 expiration of the period of redemption.
2 (5) If the redemption payment in subsection (4) includes an
3 amount used to redeem a senior lien from a nonjudicial
4 foreclosure, the mortgagor shall have the same defenses against
5 the purchaser with respect to the amount used to redeem the
6 senior lien as the mortgagor would have had against the senior
7 lien.
8 (6) The register of deeds shall indorse on the documents
9 filed pursuant to under
subsection (4) the time they are
10 received. The register of deeds shall record the affidavit of
11 the purchaser only and shall preserve in his or her files the
12 recorded affidavit, receipts, insurance receipts, and insurance
13 agent's affidavit until expiration of the period of redemption.
14 (7) For a mortgage executed on or after January 1, 1965, on
15 commercial or industrial property, or multifamily residential
16 property in excess of 4 units, the redemption period is 6 months
17 from the time date
of the sale.
18 (8) For a mortgage executed on or after January 1, 1965, on
19 residential property not exceeding 4 units and not more than 3
20 acres in size, if the amount claimed to be due on the mortgage at
21 the date of the notice of foreclosure is more than 66-2/3% of the
22 original indebtedness secured by the mortgage, the redemption
23 period is 6 months.
24 (9) For a mortgage on residential property not exceeding 4
25 units and not more than 3 acres in size, if the property is
26 abandoned as determined pursuant
to under section 3241, the
27 redemption period is 3 months.
1 (10) For a mortgage on residential property not exceeding 4
2 units and not more than 3 acres in size, if the amount claimed to
3 be due on the mortgage at the date of the notice of foreclosure
4 is more than 66-2/3% of the original indebtedness secured by the
5 mortgage and the property
is abandoned as determined pursuant
6 to under section 3241, the redemption period is 1
month.
7 (11) If the property
is abandoned as determined pursuant to
8 under section 3241a, the redemption period is 30 days.
9 (12) In any other case, the redemption period is 1 year from
10 the date of the sale.
11 Sec. 6062. (1) Within
Not later than 1 year from the
12 time date when sale on execution is made, the real
estate so
13 sold or any distinct lot, tract, or portion that is separately
14 sold or the interest in
real estate so sold , may be redeemed
15 by payment to the
purchaser, his to the purchaser's personal
16 representatives or
assigns, or to the officer who makes such
17 the sale, or to the register of deeds in whose office such
18 certificate is recorded,
for the use of such the purchaser, of
19 the sum of money bid on
the sale of such the lot or tract,
20 together with the
interest on that sum from the time date of
21 sale, computed at the interest
rate per cent per annum borne
22 provided for by the
judgment under which such the sale was
23 made. The redemption amount shall be determined by the redeeming
24 party without the assistance of the register of deeds. The
25 purchaser shall include an affidavit with the recorded deed that
26 states the exact amount required to redeem the property,
27 including any daily per diem amounts, and the date by which the
1 property must be redeemed shall be stated in the certificate of
2 sale.
3 (2) Redemption may be made by any of the following:
4 (a) The person
against whom the execution is issued , and
5 whose right and title are
sold in pursuance thereof; or of the
6 execution.
7 (b) If such the
person is dead, by his or her devisee of
8 the premises sold, if
the same have been devised; and if the
9 same have not been
devised and if there is no
devisee, by the
10 executor or administrator with the approval of the judge of
11 probate, ; or
by the person's heirs. of such person; or
12 (c) By any grantee of
such the person who acquires an
13 absolute title by deed, sale under mortgage, or under an
14 execution, or by any
other means, to the premises sold , or to
15 any lot, tract, parcel,
or portion which is separately sold. ;
16 or
17 (d) The purchaser of the title and right of redemption of the
18 person against whom the
execution issues. , or
19 (e) Any heir or
devisee of such the person, or any grantee
20 of such the
heir or devisee, who acquires an absolute title to
21 a portion of the estate sold, or to a portion of any lot, tract,
22 or parcel that is separately sold, or the executor or
23 administrator of such
the person, with the approval of the
24 judge of probate. ;
and such The person has the same remedy to
25 enforce contribution from those who own the residue of the lot,
26 tract, or parcel , as
if the sum required to be paid by him or
27 her to effect redemption was collected by a sale of the portion
1 belonging to such the
grantee. ; or
2 (f) Each of several persons having undivided shares, as joint
3 tenants or tenants in common, in the premises sold, or in any
4 particular lot or tract sold, by paying to the purchaser or
5 officer a sum that bears the same proportion to the whole sum bid
6 for the premises or for the particular lot or tract as the share
7 proposed to be redeemed bears to the whole number of shares of
8 the premises, lot, or
tract, together with the interest on such
9 the sum. ; or
10 (g) A defendant lessee where the unexpired term of the lease
11 exceeds 3 years at the
date of sale on execution. ; and on such
12 On the redemption, the defendant is entitled to repossess,
13 recover, and enjoy the premises from the execution purchaser or
14 his the purchaser's assigns.
15 (3) Upon payment being made by any person so entitled to
16 redeem any real estate so sold, the sale of the premises so
17 redeemed and the
certificate of such the sale and deed to the
18 extent of the premises or
shares so redeemed , shall be null
19 and are void.
20 Sec. 6066. (1) The
sums required to be paid by the
21 foregoing provisions under this act, to acquire the title of the
22 original purchaser , or
to become a purchaser from any
23 creditor, may be paid to such
the purchaser or creditor, to his
24 or her representatives or assigns, or to the officer who made the
25 sale , or to the
register of deeds in whose office the
26 certificate of sale is
recorded, for the use of the
purchaser or
27 creditor entitled to the same
sums paid.
1 (2) If the purchaser of any equity of redemption, or any
2 creditor having acquired
the rights of such the purchaser,
3 shall pay the debt due on the mortgage, or the amount of any sale
4 of said premises sold on
execution, or any part thereof of the
5 property, the amount so
paid on the mortgage or execution sale
6 shall be paid, with
interest, to such the purchaser or
7 creditor, in redeeming the premises, or purchasing the rights of
8 such the purchaser or creditor, as the case may
be according
9 to the provisions of provided under this chapter.
10 (3) Upon such payment
being made, the title of the original
11 purchaser shall be thereby
transferred to the creditor
12 acquiring the same
pursuant to title under the foregoing
13 provisions , and
from such the creditor to any other creditor
14 becoming a purchaser thereof
as hereinbefore provided of the
15 property.
16 (4) If an automation fund is created under section 2568, any
17 fees or charges collected by the register of deeds under this
18 section or section 3140, 3240, or 6062 shall be credited to the
19 automation fund.
20 Enacting section 1. Sections 3272 and 6058 of the revised
21 judicature act of 1961, 1961 PA 236, MCL 600.3272 and 600.6058,
22 are repealed.