November 30, 2011, Introduced by Rep. Opsommer 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 3140 and 3240 (MCL 600.3140 and 600.3240),
section 3140 as amended by 2004 PA 538 and section 3240 as amended
by 2010 PA 303.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3140. (1) The mortgagor, the mortgagor's heirs,
executors,
or administrators heir or
personal representative, or
any person lawfully claiming from or under the mortgagor or the
mortgagor's
heirs, executors, or administrators heir or personal
representative may redeem the entire premises sold under section
3125
by paying, within 6 months from the
time of after the sale, to
the
purchaser or the purchaser's executors, administrators,
personal representative or assigns, or to the register of deeds in
whose office the deed of sale is deposited as provided in the court
rules , for the benefit of the purchaser, the sum which amount that
was bid with interest from the date of the sale at the interest
rate provided for by the mortgage.
(2)
The vendee of a land contract, the vendee's heirs,
executors,
or administrators heir or
personal representative, or
any person lawfully claiming from or under the vendee or the
vendee's
heirs, executors, or administrators heir or personal
representative may redeem the entire premises sold under section
3125
within 6 months from the time of after the
sale by paying to
the
purchaser or the purchaser's executors, administrators,
personal representative or assigns, or to the register of deeds in
whose office the deed of sale is deposited as provided in the court
rules , for the benefit of the purchaser, the sum which amount that
was bid with interest from the date of the sale at the interest
rate provided for by the land contract.
(3) The register of deeds shall not determine the amount
necessary
for redemption to redeem
property sold under section
3125. The purchaser shall attach an affidavit with to the
deed to
be
recorded under this section 3130
that states the exact amount
required to redeem the property, including any daily per diem
amounts. ,
and the date by which the property must be redeemed
shall
be stated on the certificate of auctioneer. The purchaser may
include in the affidavit the name of a designee responsible on
behalf
of the purchaser to assist the person redeeming a person who
wishes to redeem the property in computing the exact amount
required to redeem the property. The designee may charge a fee that
does not exceed $50.00, as stated in the affidavit, and may be
authorized
by the purchaser to receive money
for redemption. funds.
The purchaser shall accept the amount computed by the designee.
(4)
If the sum money for redemption is paid to the register of
deeds, the person redeeming the property under subsection (1) or
(2)
shall pay a fee of $5.00 shall be
paid to the register of deeds
for
the care and custody of the redemption money.
(5)
If payments are made as provided the amount necessary to
redeem the property is paid as required under this section, the
deed of sale is void. If a distinct lot or parcel separately sold
is
redeemed, leaving a portion of the premises unredeemed, then the
deed of sale is void only as to the portion or portions of the
premises
which that are redeemed.
(6)
The amount stated in any affidavits an affidavit recorded
under
this section subsection
(3) shall be the amount necessary to
satisfy the requirements for redemption under this section.
Sec. 3240. (1) A purchaser's deed given under section 3232 is
void
if the mortgagor, the mortgagor's heirs heir or personal
representative, or any person lawfully claiming under the mortgagor
or
the mortgagor's heirs heir
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), 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, if the payment is made to
the register of deeds, 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 that does not
exceed $50.00 as stated in the affidavit, and may be authorized by
the
purchaser to receive redemption funds money to redeem the
property. The purchaser shall accept the amount computed by the
designee.
(3) If a distinct lot or parcel separately sold under this
chapter is redeemed, leaving a portion of the premises unredeemed,
the
deed shall be is void only to the redeemed parcel or parcels.
(4) If, after the sale of property under this chapter, the
purchaser,
the purchaser's heirs heir
or personal representative,
or any person lawfully claiming under the purchaser or the
purchaser's
heirs heir 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
the property is redeemed 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 a redemption payment in under subsection
(4)
includes an amount used to redeem a senior lien from a nonjudicial
foreclosure,
the mortgagor shall have has
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, and any
receipts,
insurance receipts, and or
insurance agent's affidavit
recorded under subsection (4) until expiration of the period of
redemption.
(7) 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.