Bill Text: MI SB0029 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Civil procedure; foreclosure; 2-year moratorium on mortgage foreclosures; provide for. Amends secs. 3115, 3201 & 3236 of 1961 PA 236 (MCL 600.3115 et seq.) & adds secs. 3116 & 3237. TIE BAR WITH: SB 0030'09, SB 0031'09
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-01-28 - Referred To Committee On Banking And Financial Institutions [SB0029 Detail]
Download: Michigan-2009-SB0029-Introduced.html
SENATE BILL No. 29
January 28, 2009, Introduced by Senator CLARKE and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 3115, 3201, and 3236 (MCL 600.3115, 600.3201,
and 600.3236), section 3201 as amended by 1981 PA 172, and by
adding sections 3116 and 3237.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 or land
contract 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 for 2 years after the entry of the stay
order.
(2) In an action to foreclose a mortgage or land contract 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 for 2 years after
the entry of the amendment that includes the stay.
(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 for 2 years
after the entry of the order that includes the stay. 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 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 continued
occupation of the property. Unless the defendant has abandoned the
property, the preference shall be for the defendant to remain in
possession of the property.
(b) A fair amount to be paid in lieu of mortgage or land
contract payments by the person in possession. In determining
payments to be made under this section, the court shall consider
all of the following:
(i) The ability of the defendant to pay.
(ii) The financial status of the holder of the mortgage or
seller under the land contract.
(iii) Any other factor that the court determines to be relevant.
(c) That money received under subdivision (b) be applied to
the mortgage or land contract debt or any other indebtedness
arising from a default under the mortgage or land contract. 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.
(e) A stay of any foreclosure of the property, or of any
period of redemption if foreclosure has already occurred, for
nonpayment of taxes on the property.
(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.
(5) The holder of a mortgage that is the subject of a stay or
extension order under this section may apply for a guarantee of
payment of the mortgage loan under section 44h of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1444h.
(6) After 3 years after the effective date of the amendatory
act that added this section, a court shall not enter an order or
judgment under this section to stay an action or sale or to extend
a period of redemption.
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)
This chapter shall does not
apply to mortgages of real
estate held by the Michigan state housing development authority.
(3) Before 3 years 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.
(4) An individual who files an action under subsection (3)
shall be presumed to be indigent and unable to pay court fees in
the action for purposes of section 2529.
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 3 years 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). Section 3201(4)
applies to an action filed under this section.
(2) One or more of the following may file an action under this
section:
(a) The owner of the mortgaged property.
(b) A person who is liable on the mortgage or note.
(3) The court in an action under this section shall enter an
order enjoining for 2 years after the entry of the order 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 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.
(6) The holder of a mortgage that is the subject of an order
under subsection (3) may apply for a guarantee of payment of the
mortgage loan under section 44h of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1444h.
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. 31.
(b) Senate Bill No. 30.
