Bill Text: MI HB4767 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Civil procedure; foreclosure; redemption period; shorten period for foreclosures in which federal loss mitigation procedures have been followed. Amends sec. 3240 of 1961 PA 236 (MCL 600.3240). TIE BAR WITH: HB 4764'13, HB 4765'13, HB 4766'13
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-28 - Printed Bill Filed 05/24/2013 [HB4767 Detail]
Download: Michigan-2013-HB4767-Introduced.html
HOUSE BILL No. 4767
May 23, 2013, Introduced by Rep. Callton and referred to the Committee on Financial Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 3240 (MCL 600.3240), as amended by 2011 PA 303.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3240. (1) A purchaser's deed under section 3232 is void
if the mortgagor, the mortgagor's heirs or personal representative,
or any person lawfully claiming under the mortgagor or the
mortgagor's heirs 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 (13), (14), 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
amount 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. Except as provided in subsection
(15),
(16), the register of deeds shall not determine the amount
necessary
for redemption. The purchaser shall attach provide 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. money. 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 is
void only to the redeemed parcel or parcels.
(4)
If, after the a sale
under section 3220, the purchaser,
the purchaser's heirs or personal representative, or any person
lawfully claiming under the purchaser or the purchaser's heirs 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 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 redemption payment in 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, receipts,
insurance receipts, and insurance agent's affidavit until
expiration of the period of redemption.
(7) For a mortgage executed on or after January 1, 1965, of
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, reduced, if applicable, as provided by
subsection (14).
(8) Subject to subsections (9) to (12), for a mortgage
executed on or after January 1, 1965, of 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, the redemption
period is 6 months, reduced, if applicable, as required by
subsection (14).
(9) Subject to subsection (10), for a mortgage of residential
property not exceeding 4 units, if the property is abandoned as
determined
under section 3241, the redemption period is 3 2 months.
(10) For a mortgage of 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) For a mortgage of property that is used for agricultural
purposes, the redemption period is 1 year from the date of the
sale.
(13) If subsections (7) to (12) do not apply, the redemption
period is 1 year from the date of the sale, reduced, if applicable,
as provided in subsection (14).
(14) A redemption period under subsection (7), (8), or (13) is
reduced by 120 days if section 3206 applies to the foreclosure of
the mortgage and the party foreclosing the mortgage has complied
with section 3206.
(15) (14)
The amount stated in any affidavits
recorded under
this section shall be the amount necessary to satisfy the
requirements for redemption under this section.
(16) (15)
The register of deeds of a county having
with 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).
(17) (16)
A register of deeds may charge not
more than $50.00
for determining the amount necessary for redemption under this
section.
(18) (17)
For purposes of this section, there
is a presumption
that the property is used for agricultural purposes if, before the
foreclosure sale under this chapter, the mortgagor provides the
party foreclosing the mortgage and the foreclosing party's attorney
proof that the mortgagor filed a schedule F to the mortgagor's
federal income tax form 1040 for the year preceding the year in
which the proceedings to foreclose the mortgage were commenced and
records an affidavit with the register of deeds for the county in
which the property is located stating that the proof has been
delivered. If the mortgagor fails to provide proof and record an
affidavit as required by this subsection before the foreclosure
sale, there is a presumption that the property is not used for
agricultural purposes. The party foreclosing the mortgage or the
mortgagor may file a civil action to produce evidence to rebut a
presumption created by this subsection. An action under this
section shall be filed before the expiration of the redemption
period that would apply if the property is determined not to be
used for agricultural purposes.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4764(request no.
02406'13).
(b) Senate Bill No.____ or House Bill No. 4765(request no.
02407'13).
(c) Senate Bill No.____ or House Bill No. 4766(request no.
02408'13).
