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.