Bill Text: MI HB4453 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Civil procedure; foreclosure; foreclosure by advertisement; prohibit unless requirements of mortgage negotiation program have been completed. Amends title & sec. 3204 of 1961 PA 236 (MCL 600.3204) & adds sec. 3205. TIE BAR WITH: HB 4454'09, HB 4455'09
Spectrum: Partisan Bill (Democrat 27-0)
Status: (Passed) 2009-05-26 - Assigned Pa 29'09 With Immediate Effect [HB4453 Detail]
Download: Michigan-2009-HB4453-Introduced.html
HOUSE BILL No. 4453
February 24, 2009, Introduced by Reps. Jackson, Roy Schmidt, Simpson, Robert Jones, Cushingberry, Slavens, Lisa Brown, Roberts, Corriveau, Scripps, Kennedy, Huckleberry, Haase, Haugh, Liss, Tlaib, Segal, Switalski, Bledsoe, Nerat, Smith, Ebli, Barnett, Melton, Miller, Nathan and Leland 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 the title and section 3204 (MCL 600.3204), the title as
amended by 1999 PA 239 and section 3204 as amended by 2004 PA 186,
and by adding section 3205.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to revise and consolidate the statutes relating to the
organization and jurisdiction of the courts of this state; the
powers
and duties of such the courts, and of the judges and other
officers
thereof of the courts; the forms and attributes of civil
claims and actions; the time within which civil actions and
proceedings
may be brought in said the
courts; pleading, evidence,
practice, and procedure in civil and criminal actions and
proceedings
in said the courts; to
provide for the powers and
duties of certain state governmental officers and entities; to
provide remedies and penalties for the violation of certain
provisions of this act; to repeal all acts and parts of acts
inconsistent with or contravening any of the provisions of this
act; and to repeal acts and parts of acts.
Sec.
3204. (1) A Subject to subsection
(4), a party may
foreclose a mortgage by advertisement if all of the following
circumstances exist:
(a) A default in a condition of the mortgage has occurred, by
which the power to sell became operative.
(b) An action or proceeding has not been instituted, at law,
to recover the debt secured by the mortgage or any part of the
mortgage; or, if an action or proceeding has been instituted, the
action or proceeding has been discontinued; or an execution on a
judgment rendered in an action or proceeding has been returned
unsatisfied, in whole or in part.
(c) The mortgage containing the power of sale has been
properly recorded.
(d) The party foreclosing the mortgage is either the owner of
the indebtedness or of an interest in the indebtedness secured by
the mortgage or the servicing agent of the mortgage.
(2) If a mortgage is given to secure the payment of money by
installments, each of the installments mentioned in the mortgage
after the first shall be treated as a separate and independent
mortgage. The mortgage for each of the installments may be
foreclosed in the same manner and with the same effect as if a
separate mortgage were given for each subsequent installment. A
redemption of a sale by the mortgagor has the same effect as if the
sale for the installment had been made upon an independent prior
mortgage.
(3) If the party foreclosing a mortgage by advertisement is
not the original mortgagee, a record chain of title shall exist
prior to the date of sale under section 3216 evidencing the
assignment of the mortgage to the party foreclosing the mortgage.
(4) A mortgagee shall not commence proceedings under this
chapter to foreclose a mortgage of property described in section
3205a(1) if 1 or more of the following apply:
(a) Reasonable efforts have not been made to serve notice on
the mortgagor as required by section 3205a.
(b) If the mortgagor has been served under section 3205a, the
time for a housing counselor to notify the mortgage holder or
mortgage servicer of a request by the mortgagor under section
3205b(1) has not expired.
(c) The mortgagor has requested a meeting with the mortgage
holder or mortgage servicer under section 3205b and 90 days have
not passed after service of the notice under section 3205a.
(d) The mortgagor has requested a meeting with the mortgage
holder or mortgage servicer under section 3205b and the mortgage
holder or mortgage servicer has not met or negotiated with the
borrower under this chapter.
(e) The mortgagor and mortgagee have agreed to modify the
mortgage loan and the mortgagor is not in default under the
modified agreement.
(f) Calculations under section 3205c(1) show that the
mortgagor is eligible for a loan modification without any exception
being made.
(5) Subsection (4) applies only to proceedings under this
chapter in which the first notice under section 3208 is published
after the effective date of the amendatory act that added this
subsection and before 2 years after the effective date of the
amendatory act that added this subsection.
Sec. 3205. As used in this section and sections 3205a to
3205d:
(a) "Borrower" means the mortgagor.
(b) "FDIC workout program" means the FDIC mortgage loan
modification program for delinquent residential first mortgages
developed by the federal deposit insurance corporation, effective
on October 6, 2008.
(c) "Mortgage holder" means the owner of the indebtedness or
of an interest in the indebtedness that is secured by the mortgage.
(d) "Mortgage servicer" means the servicing agent of the
mortgage.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4455(request no.
02274'09).
(b) Senate Bill No.____ or House Bill No. 4454(request no.
02275'09).
