June 17, 2008, Introduced by Senators CASSIS and GARCIA and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 3240 (MCL 600.3240), as amended by 2006 PA 579.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3240. (1) A purchaser's deed is void if the mortgagor,
the
mortgagor's heirs , executors, or administrators personal
representative, or any person lawfully claiming under the mortgagor
or
the mortgagor's heirs , executors, or administrators personal
representative redeems the entire premises sold by paying the
amount required under subsection (2) and any amount required under
subsection (4), within the applicable time limit prescribed in
subsections (7) to (12), to the purchaser or the purchaser's
executors,
administrators, personal
representative or assigns, or
to the register of deeds in whose office the deed is deposited for
the benefit of the purchaser.
(2) The amount required to be paid under subsection (1) is the
sum that was bid for the entire premises sold, with interest from
the date of the sale at the interest rate provided for by the
mortgage, together with the amount of the sheriff's fee paid by the
purchaser under section 2558(2)(q), and an additional $5.00 as a
fee for the care and custody of the redemption money if the payment
is
made to the register of deeds. The register of deeds shall not
may determine the amount necessary for redemption. The purchaser
shall attach an affidavit with the deed to be recorded under this
section that states the exact amount required to redeem the
property under this subsection, including any daily per diem
amounts, and the date by which the property must be redeemed shall
be stated on the certificate of sale. The purchaser may include in
the affidavit the name of a designee responsible on behalf of the
purchaser to assist the person redeeming the property in computing
the exact amount required to redeem the property. The designee may
charge a fee as stated in the affidavit and may be authorized by
the purchaser to receive redemption funds. The purchaser shall
accept the amount computed by the designee.
(3) If a distinct lot or parcel separately sold is redeemed,
leaving a portion of the premises unredeemed, the deed shall be
void only to the redeemed parcel or parcels.
(4) If, after the sale and at least 30 days before the last
day
to redeem, the purchaser, the
purchaser's heirs , executors, or
administrators
personal representative, or any person lawfully
claiming
under the purchaser or the purchaser's heirs , executors,
or
administrators personal
representative pays taxes assessed
against the property, amounts necessary to redeem senior liens from
foreclosure, condominium assessments, homeowner association
assessments, community association assessments, or premiums on an
insurance policy covering any buildings located on the property
that under the terms of the mortgage it would have been the duty of
the mortgagor to pay if the mortgage had not been foreclosed and
that are necessary to keep the policy in force until the expiration
of the period of redemption, redemption shall be made only upon
payment of the sum specified in subsection (2) plus the amounts
specified in this subsection with interest on the amounts specified
in this subsection from the date of the payment to the date of
redemption at the interest rate specified in the mortgage, if all
of the following are filed with the register of deeds with whom the
deed is deposited:
(a) An affidavit by the purchaser or someone in his or her
behalf who has knowledge of the facts of the payment showing the
amount and items paid.
(b) The receipt or copy of the canceled check evidencing the
payment of the taxes, amounts necessary to redeem senior liens from
foreclosure, condominium assessments, homeowner association
assessments, community association assessments, or insurance
premiums.
(c) An affidavit of an insurance agent of the insurance
company stating that the payment was made and what portion of the
payment covers the premium for the period before the expiration of
the period of redemption.
(5) If the redemption payment in subsection (4) includes an
amount used to redeem a senior lien from a nonjudicial foreclosure,
the mortgagor shall have the same defenses against the purchaser
with respect to the amount used to redeem the senior lien as the
mortgagor would have had against the senior lien.
(6) The register of deeds shall indorse on the documents filed
under subsection (4) the time they are received. The register of
deeds shall record the affidavit of the purchaser only and shall
preserve in his or her files the recorded affidavit, receipts,
insurance receipts, and insurance agent's affidavit until
expiration of the period of redemption.
(7) Subject to subsections (9) to (11), for a mortgage
executed on or after January 1, 1965, on commercial or industrial
property, or multifamily residential property in excess of 4 units,
the redemption period is 6 months from the date of the sale.
(8) Subject to subsections (9) to (11), for a mortgage
executed on or after January 1, 1965, on residential property not
exceeding 4 units and not more than 3 acres in size, if the amount
claimed to be due on the mortgage at the date of the notice of
foreclosure is more than 66-2/3% of the original indebtedness
secured by the mortgage, the redemption period is 6 months.
(9) Subject to subsection (10), for a mortgage on residential
property not exceeding 4 units, if the property is abandoned as
determined under section 3241, the redemption period is 3 months.
(10) For a mortgage on residential property not exceeding 4
units, if the amount claimed to be due on the mortgage at the date
of the notice of foreclosure is more than 66-2/3% of the original
indebtedness secured by the mortgage and the property is abandoned
as determined under section 3241, the redemption period is 1 month.
(11) If the property is abandoned as determined under section
3241a, the redemption period is 30 days or until the time to
provide the notice required by section 3241a(c) expires, whichever
is later.
(12) If subsections (7) to (11) do not apply, the redemption
period is 1 year from the date of the sale.
(13) The amount stated in any affidavits recorded under this
section shall be the amount necessary to satisfy the requirements
for redemption under this section.
(14) If a register of deeds incorrectly determines the amount
necessary for redemption under subsection (2) and the correct
amount is less than $50.00 more than the incorrectly determined
amount, the applicable redemption period under this section is
extended by 3 days. The register of deeds shall give the purchaser
and every person known to the register to have a right to redeem
the property under subsection (1) notice by mail of the extended
redemption period.