Bill Text: MI HB5267 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Civil procedure; foreclosure; amount required to redeem foreclosed property; allow certain registers of deeds to calculate. Amends sec. 3240 of 1961 PA 236 (MCL 600.3240).
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2010-12-29 - Assigned Pa 303'10 With Immediate Effect [HB5267 Detail]
Download: Michigan-2009-HB5267-Engrossed.html
HB-5267, As Passed House, November 12, 2009
HOUSE BILL No. 5267
August 19, 2009, Introduced by Reps. Miller, Switalski, Liss, Huckleberry, Rocca, Gregory and Lisa Brown and referred to the Committee on Intergovernmental and Regional Affairs.
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, 30 days or
more before the last day of the applicable redemption period if the
redemption period is more than 30 days or 10 days or more before
the last day of the applicable redemption period if the redemption
period is 30 days or less, 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.
House Bill No. 5267 as amended November 12, 2009
(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 500,000 and less than 1,500,000 may determine the amount
necessary for redemption under subsection (2). [The register of deeds may
elect to provide the amount calculated under this subsection only to the person entitled to redeem the property under this section.] 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). [The
purchaser shall accept the amount calculated by the register of deeds
under this section.]
(15) A register of deeds may charge not more than $50.00 for
determining the amount necessary for redemption under subsection
(2).
