Bill Text: MI HB4405 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Civil procedure; foreclosure; 1-year moratorium on residential mortgage and land contract foreclosures; provide for. Amends secs. 3101, 3115, 3201 & 3236 of 1961 PA 236 (MCL 600.3101 et seq.) & adds secs. 3116 & 3237. TIE BAR WITH: HB 4404'11
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-10 - Printed Bill Filed 03/10/2011 [HB4405 Detail]
Download: Michigan-2011-HB4405-Introduced.html
HOUSE BILL No. 4405
March 9, 2011, Introduced by Rep. Jackson 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 3101, 3115, 3201, and 3236 (MCL 600.3101,
600.3115, 600.3201, and 600.3236), sections 3101 and 3201 as
amended by 1981 PA 172, and by adding sections 3116 and 3237.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3101. The circuit court has jurisdiction to foreclose
mortgages of real estate and land contracts. However, with the
exception
of section 3116, the procedures set
forth in this chapter
shall
do not apply to mortgages of real estate and land
contracts
held by the Michigan state housing development authority.
Sec.
3115. Whenever a complaint is filed Subject to section
3116,
in an action for the foreclosure or
satisfaction of any a
mortgage
on real estate or land contract, the court has power to
may
order a sale of the premises which that are
the subject of the
mortgage
on real estate or land contract, or of that part of the
premises
which that is sufficient to discharge the amount due on
the
mortgage on real estate or land contract plus costs. But the
circuit
judge The court shall not order that the lands subject to
the mortgage be sold within 6 months after the filing of the
complaint
for foreclosure of the mortgage or that the lands which
that are the subject of the land contract be sold within 3 months
after the filing of the complaint for foreclosure of the land
contract.
Sec. 3116. (1) In an action to foreclose a mortgage of or land
contract for the sale of residential property in which a judgment
of foreclosure has not been entered by the effective date of the
amendatory act that added this section, the court, on motion of a
defendant, shall order the action stayed until 1 year after the
effective date of the amendatory act that added this section.
(2) In an action to foreclose a mortgage of or land contract
for the sale of residential property in which a judgment of
foreclosure has been entered but the period of redemption has not
expired by the effective date of the amendatory act that added this
section, the court, on motion of a defendant, shall do 1 of the
following:
(a) If the property has not been sold under the judgment,
amend the judgment to include a stay of the sale until 1 year after
the effective date of the amendatory act that added this section.
(b) If the property has been sold under the judgment, include
in the order confirming the report of sale or, if the order
confirming the report of sale has been entered, amend the order to
include a provision extending the period of redemption until 1 year
after the effective date of the amendatory act that added this
section. The register of deeds shall endorse, record, and index an
order amending an order confirming the report of sale under this
subdivision in the manner provided for deeds of sale under section
3130 or, if the mortgage or land contract is held by the Michigan
state housing development authority, under section 48g of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1448g, and note the existence of the order amending the order
confirming the report of sale on the record of the deed of sale.
(3) The court may include in an order entered under subsection
(1) or a judgment or order entered under subsection (2) any of the
following provisions relating to the property during the stay or
extension:
(a) Possession of the property. In making an order under this
subdivision, the court shall give preference to the owner in
possession.
(b) A fair amount to be paid as rental by the person in
possession.
(c) The application of money received from rent under
subdivision (b) or any other income or profits of the property. The
court may order that payment and distribution of money be made
through the clerk of the court or another person.
(d) Preservation of the property, including payment of taxes
and maintenance of insurance.
(4) The court may set aside or modify an order or judgment
entered under subsection (1) or (2) if a defendant substantially
violates a provision ordered under subsection (3) or for any other
reason that the court determines in its discretion to justify the
change. If an order or judgment entered under subsection (1) or (2)
is set aside, the rights of a person interested in the property
that were affected by the order or judgment revest in the person
effective the date the order or judgment is set aside as if the
order or judgment had not been entered.
Sec.
3201. (1) Every Subject
to subsection (3), every mortgage
of
real estate , which that
contains a power of sale, upon default
being
made in any condition of such the mortgage,
may be foreclosed
by
advertisement , in the cases and in the manner specified as
provided
in this chapter. However, the
procedures set forth in this
(2) With the exception of subsection (3) and section 3237,
this
chapter shall does not
apply to mortgages of real estate held
by the Michigan state housing development authority.
(3) Before 1 year after the effective date of the amendatory
act that added this subsection, if a mortgage of residential
property is being foreclosed by advertisement, the owner of the
mortgaged property or a person liable under the mortgage or
mortgage note may file an action in the circuit court for the
county where the property is located to enjoin foreclosure of the
mortgage by advertisement. The court in an action filed under this
subsection shall enjoin foreclosure of the mortgage by
advertisement and order the foreclosure to proceed under chapter 31
or, if the mortgage is held by the Michigan state housing
development authority, under sections 48a to 48p of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1448a to 125.1448p.
Sec.
3236. (1) Unless Except
as provided in section 3237,
unless
the premises described in such the deed
shall be of sale are
redeemed
within the time limited for such applicable period of
redemption
as hereinafter provided , such in
this chapter, the deed
shall
thereupon become becomes operative
, on the expiration of the
period
of redemption and shall vest vests in
the grantee therein
named ,
his in the deed or the
grantee's heirs or assigns , all the
right,
title, and interest which the mortgagor had at the time of
the
execution of the mortgage, or at any time thereafter after the
execution, except as to any parcel or parcels which may that have
been
redeemed and canceled, as hereinafter provided ;
and the in
this chapter.
(2)
After the period of redemption expires, the record thereof
shall
thereafter, of the deed of
sale is for all purposes be deemed
a
valid record of said the deed of
sale without being re-recorded.
,
but no However, a person having any who has a valid subsisting
lien
upon on the mortgaged premises, or any part thereof of the
mortgaged
premises, created before the lien of such
the mortgage
took
effect, shall not be prejudiced by any such the sale,
nor
shall
his and the person's rights or interests be are not in
any
way
affected thereby by the
sale.
Sec. 3237. (1) If the applicable period of redemption provided
under this chapter for a mortgage of residential property that is
being foreclosed by advertisement has not expired by 1 year after
the effective date of the amendatory act that added this section, a
person described in subsection (2) may file a complaint in the
circuit court for the county in which the property is located
requesting the relief described in subsection (3).
(2) One or more of the following may file an action under this
section:
(a) The mortgagor.
(b) The owner of the mortgaged property.
(c) A person who is liable on the mortgage or note.
(3) The court in an action under this section shall enter an
order enjoining until 1 year after the effective date of the
amendatory act that added this section the issuance of a writ of
restitution or other order to give a purchaser under a deed of sale
possession of the mortgaged property. The court may include in the
order a provision listed in section 3116(3).
(4) The register of deeds shall endorse, record, and index an
order under subsection (3) in the manner provided for deeds of sale
under section 3232 or, if the mortgage is held by the Michigan
state housing development authority, under section 49h of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1449h, and note the existence of the order on the record of the
deed of sale.
(5) The court may set aside or modify an order entered under
subsection (3) if a defendant substantially violates a provision
listed in section 3116(3) that is included in the order or for any
other reason that the court determines in its discretion to justify
the change. If an order entered under subsection (3) is set aside,
the rights of a person interested in the property that were
affected by the order revest in the person effective the date the
order is set aside as if the order had not been entered.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4404(request no.
01873'11 a) of the 96th Legislature is enacted into law.
