HB-5267, As Passed Senate, December 3, 2010

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5267

     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 Except as provided in

subsection (14), the register of deeds shall not 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, 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 This subsection does not apply unless 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 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) The register of deeds of a county having a population of

more than 750,000 and less than 1,500,000, at the request of a

person entitled to redeem the property under this section, shall

determine the amount necessary for redemption. In determining the

amount, the register of deeds shall consider only the affidavits

recorded under subsections (2) and (4). A county, register of

deeds, or employee of a county or register of deeds is not liable

for damages proximately caused by an incorrect determination of an

amount necessary for redemption under subsection (2).

     (15) A register of deeds may charge not more than $50.00 for

determining the amount necessary for redemption under this section.