SENATE BILL No. 929

 

 

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.