Bill Text: MI HB4453 | 2009-2010 | 95th Legislature | Engrossed
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-Engrossed.html
HB-4453, As Passed Senate, April 2, 2009
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4453
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 party 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) Notice has not been mailed to the mortgagor as required by
section 3205a.
(b) After a notice is mailed to the mortgagor under section
3205a, the time for a housing counselor to notify the person
designated under section 3205a(1)(c) of a request by the mortgagor
under section 3205b(1) has not expired.
(c) Within 14 days after a notice is mailed to the mortgagor
under section 3205a, the mortgagor has requested a meeting under
section 3205b with the person designated under section 3205a(1)(c)
and 90 days have not passed after the notice was mailed.
(d) The mortgagor has requested a meeting under section 3205b
with the person designated under section 3205a(1)(c), the mortgagor
has provided documents if requested under section 3205b(2), and the
person designated under section 3205a(1)(c) has not met or
negotiated with the mortgagor under this chapter.
(e) The mortgagor and mortgagee have agreed in writing to
modify the mortgage loan and the mortgagor is not in default under
the modified agreement.
(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,
effective on October 6, 2008, proposed by the federal deposit
insurance corporation to be used for modifications of residential
mortgage loans under 12 USC 5220(b).
(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 takes effect 30 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) House Bill No. 4454.
(b) House Bill No. 4455.
