HOUSE BILL No. 5176

 

November 10, 2011, Introduced by Rep. Olson and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3232 and 3240 (MCL 600.3232 and 600.3240),

 

section 3240 as amended by 2010 PA 303.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3232. (1) The Immediately after a sale under section

 

3216, the officer or person making the sale shall forthwith

 

execute, acknowledge, and deliver , to each purchaser a deed of the

 

premises property bid off. by him; and if If the lands are property

 

is situated in several counties, he the officer or person making

 

the sale shall make separate deeds of the lands property in each

 

county. , and specify therein The officer or person making the sale

 

shall state in a deed executed under this section the precise

 

amounts amount for which each parcel of land therein described in

 


the deed was sold . And he shall endorse upon each deed and the

 

time when the same deed will become operative in case the premises

 

are not redeemed according to law as determined under section 3240.

 

Such

 

     (2) A deed or deeds executed under this section shall, as soon

 

as practicable , and within 20 days after such the sale under

 

section 3216, be deposited with the register of deeds of the county

 

in which the land therein property described in the deed is

 

situated. , and the The register shall endorse thereon on the deed

 

the time the same deed was received, and for the better

 

preservation thereof, shall record the same deed at length in a

 

book to be provided kept in his the office of the register of deeds

 

for that purpose, ; and shall index the same deed in the regular

 

index of deeds. , and the The fee for recording the same deed under

 

this subsection shall be included among the other costs and

 

expenses allowed by law. In case such premises shall be

 

     (3) If property sold at a sale under section 3216 is redeemed

 

as provided in section 3240, the register of deeds shall, at the

 

time of destroying such the deed , as provided in under section

 

3244, of this chapter, write on the face of such the record the

 

word "Redeemed", stating at what the date such the entry is made ,

 

and signing such the entry. with his official signature.

 

     Sec. 3240. (1) A purchaser's deed is void if the mortgagor,

 

the mortgagor's heirs or personal representative, or any person

 

lawfully claiming under the mortgagor or the mortgagor's heirs or

 

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), (14), to the purchaser or the

 

purchaser's 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. 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

 

or personal representative, or any person lawfully claiming under

 

the purchaser or the purchaser's heirs or 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. 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) For Subject to subsection (14), for a mortgage executed on

 

or after January 1, 1965, on of 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), (13), for a mortgage

 

executed on or after January 1, 1965, on of 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) or (13), for a mortgage on of

 

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 of 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) Subject to subsection (13), for a mortgage of property

 

that is used for agricultural purposes, the redemption period is 1

 

year from the date of the sale.

 

     (13) Unless subsection (10) or (11) applies, if the original

 

mortgagee has never assigned the mortgage or the indebtedness

 

secured by the mortgage and has not transferred the power to

 

service the mortgage, the redemption period is 90 days from the

 

date of the sale.

 

     (14) (12) If subsections (7) to (11) (13) do not apply, the

 

redemption period is 1 year from the date of the sale.

 

     (15) (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.

 

     (16) (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).

 

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

 

for determining the amount necessary for redemption under this

 

section.

 

     (18) For purposes of this section, there is a presumption that

 

the property is used for agricultural purposes if, before the

 

foreclosure sale under this chapter, the mortgagor provides the

 

party foreclosing the mortgage proof that the mortgagor filed a

 

schedule F to the mortgagor's federal income tax form 1040 for the

 

year preceding the year in which the proceedings to foreclose the

 

mortgage were commenced. If the mortgagor fails to provide proof as

 

described in this subsection before the foreclosure sale, there is

 

a presumption that the property is not used for agricultural

 

purposes. The party foreclosing the mortgage or the mortgagor may

 

file a civil action to produce evidence to rebut a presumption

 

created by this subsection.