January 28, 2004, Introduced by Senator HAMMERSTROM 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 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 the sum is
14 paid to the register
of deeds the sum of $5.00 shall be paid to
15 him as a fee for the
care and custody of the redemption money.
16 After these sums have
been paid
17 (3) If payments are made as provided under this section, the
18 deed of sale is void.
and of no effect, but in case any If a
19 distinct lot or parcel separately sold is redeemed, leaving a
20 portion of the premises unredeemed, then the deed of sale is
21 inoperative merely void only as to the portion or portions of
22 the premises which are
redeemed. and to the portions not
23 redeemed it remains valid
and of full effect.
24 Sec. 3240. (1) A purchaser's deed is void if the mortgagor,
25 the mortgagor's heirs, executors, or administrators, or any
26 person lawfully claiming
under the mortgagor , or the
27 mortgagor's heirs, executors, or administrators redeems the
1 entire premises sold by paying the amount required under
2 subsection (2), within the applicable time limit prescribed in
3 subsections (7) to (12),
to the purchaser , or the purchaser's
4 executors,
administrators, or assigns. , or to the register of
5 deeds in whose office
the deed is deposited for the benefit of
6 the purchaser.
7 (2) The amount required to be paid under subsection (1) is
8 the sum that was bid for the entire premises sold, with interest
9 from the time date
of the sale at the interest rate percent
10 borne provided for by the mortgage, together with
the amount of
11 the sheriff's fee paid by the purchaser under section 2558(2)(q).
12 , and an additional
$3.00 as a fee for the care and custody of
13 the redemption money
if the payment is made to the register of
14 deeds.
15 (3) If a distinct lot or parcel separately sold is redeemed,
16 leaving a portion of the premises unredeemed, the deed shall be
17 inoperative void only to the redeemed parcel or parcels.
, and
18 to those portions that
have not been redeemed the deed shall
19 remain valid.
20 (4) If after the sale the purchaser, the purchaser's heirs,
21 executors, or administrators, or any person lawfully claiming
22 under the purchaser ,
or the purchaser's heirs, executors, or
23 administrators pays taxes assessed against the property, amounts
24 necessary to redeem senior liens from foreclosure, condominium
25 assessments, homeowner association assessments, community
26 association assessments, or premiums on an insurance policy
27 covering any buildings located on the property that under the
1 terms of the mortgage it would have been the duty of the
2 mortgagor to pay if the mortgage had not been foreclosed and that
3 are necessary to keep the policy in force until the expiration of
4 the period of redemption, redemption shall be made only upon
5 payment of the sum specified in subsection (2) plus the amounts
6 specified in this subsection with interest on the amounts
7 specified in this subsection from the date of the payment to the
8 date of redemption at the interest rate specified in the
9 mortgage, if all of the following are filed with the register of
10 deeds with whom the deed is deposited:
11 (a) An affidavit by the purchaser or someone in his or her
12 behalf who has knowledge of the facts of the payment showing the
13 amount and items paid.
14 (b) The receipt or copy of the canceled check evidencing the
15 payment of the taxes, amounts necessary to redeem senior liens
16 from foreclosure, condominium assessments, homeowner association
17 assessments, community association assessments, or insurance
18 premiums.
19 (c) An affidavit of an insurance agent of the insurance
20 company stating that the payment was made and what portion of the
21 payment covers the
premium for the period prior to before the
22 expiration of the period of redemption.
23 (5) If the redemption payment in subsection (4) includes an
24 amount used to redeem a senior lien from a nonjudicial
25 foreclosure, the mortgagor shall have the same defenses against
26 the purchaser with respect to the amount used to redeem the
27 senior lien as the mortgagor would have had against the senior
1 lien.
2 (6) The register of deeds shall indorse on the documents
3 filed pursuant to under
subsection (4) the time they are
4 received. The register of deeds shall record the affidavit of
5 the purchaser only and shall preserve in his or her files the
6 recorded affidavit, receipts, insurance receipts, and insurance
7 agent's affidavit until expiration of the period of redemption.
8 (7) For a mortgage executed on or after January 1, 1965, on
9 commercial or industrial property, or multifamily residential
10 property in excess of 4 units, the redemption period is 6 months
11 from the time date
of the sale.
12 (8) For a mortgage executed on or after January 1, 1965, on
13 residential property not exceeding 4 units and not more than 3
14 acres in size, if the amount claimed to be due on the mortgage at
15 the date of the notice of foreclosure is more than 66-2/3% of the
16 original indebtedness secured by the mortgage, the redemption
17 period is 6 months.
18 (9) For a mortgage on residential property not exceeding 4
19 units and not more than 3 acres in size, if the property is
20 abandoned as determined pursuant
to under section 3241, the
21 redemption period is 3 months.
22 (10) For a mortgage on residential property not exceeding 4
23 units and not more than 3 acres in size, if the amount claimed to
24 be due on the mortgage at the date of the notice of foreclosure
25 is more than 66-2/3% of the original indebtedness secured by the
26 mortgage and the property
is abandoned as determined pursuant
27 to under section 3241, the redemption period is 1
month.
1 (11) If the property
is abandoned as determined pursuant to
2 under section 3241a, the redemption period is 30 days.
3 (12) In any other case, the redemption period is 1 year from
4 the date of the sale.
5 Sec. 6062. (1) Within
Not later than 1 year from the
6 time date when sale on execution is made, the real
estate so
7 sold or any distinct lot, tract, or portion that is separately
8 sold or the interest in
real estate so sold , may be redeemed
9 by payment to the
purchaser, his to the purchaser's personal
10 representatives or
assigns, or to the officer who makes such
11 sale, or to the
register of deeds in whose office such
12 certificate is
recorded, the sale for the
use of such the
13 purchaser, of the sum of
money bid on the sale of such the lot
14 or tract, together with
the interest on that sum from the time
15 date of sale, computed at
the interest rate per cent per annum
16 borne provided for by the judgment under which such
the sale
17 was made.
18 (2) Redemption may be made by any of the following:
19 (a) The person against
whom the execution is issued , and
20 whose right and title are
sold in pursuance thereof; or of the
21 execution.
22 (b) If such the
person is dead, by his or her devisee of
23 the premises sold, if
the same have been devised; and if the
24 same have not been
devised and if there is no
devisee, by the
25 executor or administrator with the approval of the judge of
26 probate, ; or
by the person's heirs. of such person; or
27 (c) By any grantee of
such the person who acquires an
1 absolute title by deed, sale under mortgage, or under an
2 execution, or by any
other means, to the premises sold , or to
3 any lot, tract, parcel,
or portion which is separately sold. ;
4 or
5 (d) The purchaser of the title and right of redemption of the
6 person against whom the
execution issues. , or
7 (e) Any heir or
devisee of such the person, or any grantee
8 of such the
heir or devisee, who acquires an absolute title to
9 a portion of the estate sold, or to a portion of any lot, tract,
10 or parcel that is separately sold, or the executor or
11 administrator of such
the person, with the approval of the
12 judge of probate. ;
and such The person has the same remedy to
13 enforce contribution from those who own the residue of the lot,
14 tract, or parcel , as
if the sum required to be paid by him or
15 her to effect redemption was collected by a sale of the portion
16 belonging to such the
grantee. ; or
17 (f) Each of several persons having undivided shares, as joint
18 tenants or tenants in common, in the premises sold, or in any
19 particular lot or tract sold, by paying to the purchaser or
20 officer a sum that bears the same proportion to the whole sum bid
21 for the premises or for the particular lot or tract as the share
22 proposed to be redeemed bears to the whole number of shares of
23 the premises, lot, or
tract, together with the interest on such
24 the sum. ; or
25 (g) A defendant lessee where the unexpired term of the lease
26 exceeds 3 years at the
date of sale on execution. ; and on such
27 On the redemption, the defendant is entitled to repossess,
1 recover, and enjoy the premises from the execution purchaser or
2 his the purchaser's assigns.
3 (3) Upon payment being made by any person so entitled to
4 redeem any real estate so sold, the sale of the premises so
5 redeemed and the
certificate of such the sale and deed to the
6 extent of the premises or
shares so redeemed , shall be null
7 and are void.
8 Sec. 6066. (1) The sums required to be paid by the
9 foregoing provisions, to acquire the title of the original
10 purchaser , or
to become a purchaser from any creditor, may be
11 paid to such the
purchaser or creditor, to his or her
12 representatives or assigns, or to the officer who made the sale
13 , or to the register
of deeds in whose office the certificate of
14 sale is recorded, for the use of the purchaser or creditor
15 entitled to the same sums
paid.
16 (2) If the purchaser of any equity of redemption, or any
17 creditor having acquired
the rights of such the purchaser,
18 shall pay the debt due on the mortgage, or the amount of any sale
19 of said premises sold on
execution, or any part thereof of the
20 property, the amount so
paid on the mortgage or execution sale
21 shall be paid, with
interest, to such the purchaser or
22 creditor, in redeeming the premises, or purchasing the rights of
23 such the purchaser or creditor, as the case may
be according
24 to the provisions of provided under this chapter.
25 (3) Upon such payment
being made, the title of the
26 original purchaser shall
be thereby transferred to the creditor
27 acquiring the same
pursuant to title under the foregoing
1 provisions , and
from such the creditor to any other creditor
2 becoming a purchaser thereof
as hereinbefore provided of the
3 property.
4 Enacting section 1. Sections 3272 and 6058 of the revised
5 judicature act of 1961, 1961 PA 236, MCL 600.3272 and 600.6058,
6 are repealed.