Bill Text: MI SB0991 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Civil procedure; foreclosure; procedures for redeeming property from mortgage foreclosure; enact miscellaneous revisions. Amends secs. 3130, 3140, 3145, 3232, 3240 & 3248 of 1961 PA 236 (MCL 600.3130 et seq.); adds sec. 3240a & repeals sec. 3244 of 1961 PA 236 (MCL 600.3244).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-12-01 - Referred To Committee On Banking And Financial Institutions [SB0991 Detail]

Download: Michigan-2009-SB0991-Introduced.html

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SENATE BILL No. 991

 

 

December 1, 2009, Introduced by Senator BROWN 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 3130, 3140, 3145, 3232, 3240, and 3248 (MCL

 

600.3130, 600.3140, 600.3145, 600.3232, 600.3240, and 600.3248),

 

section 3140 as amended by 2004 PA 538 and section 3240 as amended

 

by 2006 PA 579, and by adding section 3240a; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3130. (1) The person making the sale under section 3125

 

shall execute deeds specifying the names of the parties in the

 

action, the date of the land contract or mortgage, when and where

 

it was recorded, a description of the premises sold, and the amount

 

for which each parcel of land described in the deed was sold. ; and

 

he The person shall indorse upon each deed the time it becomes

 

operative if the premises are not redeemed according to law. Unless

 

the premises or any parcel of them are the premises is redeemed

 

within the time limited for redemption, the deed shall become

 

becomes operative as to all parcels not redeemed , and shall vest

 

vests in the grantee named in the deed , his 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 was executed or at

 

any time thereafter after the mortgage was executed.

 

     (2) The deed of sale as As soon as practicable and within 20

 

days after the a sale under section 3125, the deed of sale shall be

 

deposited with the register of deeds of the county in which the

 

land therein described in the deed is situated. , and the The

 

register shall indorse upon the deed the time it was received, and

 

shall record the deed at length, in a book to be provided in his

 

office for that purpose and shall index the deed in the regular

 

general index of deeds, and the records. The fee for recording the

 

deed shall be included among the other costs and expenses allowed

 

by law. If the premises or any parcel of them are redeemed the

 

register of deeds shall write on the face of the record the work

 

"Redeemed" and he shall write at what date the entry is made and

 

sign the entry with his official signature.

 

     Sec. 3140. (1) The mortgagor, the mortgagor's heirs,

 

executors, or administrators heir or personal representative, or

 

any person lawfully claiming from or under the mortgagor or the

 

mortgagor's heirs, executors, or administrators heir or personal

 

representative may redeem the entire premises sold under section

 

3125 by paying, within 6 months from the time of after the sale, to

 

the purchaser or the purchaser's executors, administrators,

 

personal representative or assigns, or to the register of deeds in

 

whose office the deed of sale is deposited recorded as provided in

 

the court rules , for the benefit of the purchaser, the sum which

 

amount that was bid with interest from the date of the sale at the

 

interest rate provided for by the mortgage.

 

     (2) The vendee of a land contract, the vendee's heirs,

 

executors, or administrators heir or personal representative, or

 

any person lawfully claiming from or under the vendee or the

 

vendee's heirs, executors, or administrators heir or personal

 

representative may redeem the entire premises sold under section

 

3125 within 6 months from the time of after the sale by paying to

 

the purchaser or the purchaser's executors, administrators,

 

personal representative or assigns, or to the register of deeds in

 

whose office the deed of sale is deposited recorded as provided in

 

the court rules , for the benefit of the purchaser, the sum which

 

amount that was bid with interest from the date of the sale at the

 

interest rate provided for by the land contract.

 

     (3) The register of deeds shall not determine the amount

 

necessary for redemption to redeem property sold under section

 

3125. The purchaser shall attach an affidavit with to the deed to

 

be recorded under this section 3130 that states the exact amount

 

required to redeem the property, including any daily per diem

 

amounts. , and the date by which the property must be redeemed

 

shall be stated on the certificate of auctioneer. The purchaser may

 

include in the affidavit the name of a designee responsible on

 

behalf of the purchaser to assist the person redeeming a person who

 

wishes to redeem 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 money for redemption. funds. The purchaser shall accept the

 

amount computed by the designee.

 

     (4) If the sum money for redemption is paid to the register of

 

deeds, the person redeeming the property under subsection (1) or

 

(2) shall pay a fee of $5.00 shall be paid $10.00 to the register

 

of deeds for the care and custody of the redemption money.

 

     (5) A person who redeems property under subsection (1) or (2)

 

by paying the redemption money to the register of deeds shall

 

deliver to the register of deeds with the money a notice to the

 

purchaser or purchaser's representative designated under subsection

 

(3) that contains all of the following information:

 

     (a) The name and address of the purchaser or designee.

 

     (b) The name and address of the person paying the money to

 

redeem the property.

 

     (c) The amount paid and the date on which it was paid to the

 

register.

 

     (d) The liber and page number, or other unique identifying

 

number, where the deed of sale given under section 3130 is

 

recorded.

 

     (e) A statement of the requirements of subsection (7).

 

     (6) On receiving a notice under subsection (5), the register

 

of deeds shall record the notice and then mail a copy of the

 

recorded notice to the purchaser or the designee at the address

 

given in the notice by certified mail, return receipt requested.

 

     (7) Within 14 days after receiving the notice under subsection

 

(6), the purchaser or designee shall respond to the register of

 

deeds by doing 1 of the following:

 

     (a) If the amount paid for redemption is sufficient to redeem

 

the property, signing and recording a quitclaim deed or other

 

instrument sufficient to release the purchaser's interest in the

 

property to the person paying the money. The purchaser or designee

 

shall include in the deed the liber and page number, or other

 

unique identifying number, where the deed of sale from which the

 

property is being redeemed is recorded. On recording a quitclaim

 

deed or other instrument under this subdivision, the register of

 

deeds shall note in the index entry the liber and page number, or

 

other unique identifying number, included in the deed pursuant to

 

this subdivision.

 

     (b) If the amount paid for redemption is not sufficient to

 

redeem the property, notifying the person paying the money under

 

subsection (1) or (2) that the amount paid was insufficient and

 

advising the person that if the person who paid the money believes

 

the amount paid was sufficient, the person may seek relief from the

 

court.

 

     (8) (5) If payments are made as provided the amount necessary

 

to redeem the property is paid as required under this section, the

 

deed of sale is void. If a distinct lot or parcel separately sold

 

is redeemed, leaving a portion of the premises unredeemed, then the

 

deed of sale is void only as to the portion or portions of the

 

premises which that are redeemed.

 

     (9) (6) The amount stated in any affidavits an affidavit

 

recorded under this section subsection (3) shall be the amount

 

necessary to satisfy the requirements for redemption under this

 

section.

 

     (10) A purchaser or designee who fails to respond as required

 

by subsection (7) is liable to the person paying the money in the

 

amount of $1,000.00.

 

     Sec. 3145. (1) The A court may make include a provision in any

 

a judgment of foreclosure for the adding to the amount determined

 

in the judgment to be due, any sum or sums paid at any time that if

 

the purchaser at the foreclosure sale pays either of the following

 

after the foreclosure sale and prior to before the expiration of

 

the period of redemption and if under the terms of the mortgage or

 

land contract it would have been the duty of the defendants

 

determined to be personally liable under section 3150 to make the

 

payment had the mortgage or land contract not been foreclosed, as

 

taxes the amount paid shall be added to the amount determined to be

 

due in the judgment:

 

     (a) Taxes assessed against the property. and/or the portion of

 

the

 

     (b) A premium of any for an insurance policy covering any

 

buildings located on the premises as is required necessary to keep

 

the policy in force until the expiration of the period of

 

redemption. , if under the terms of the mortgage it would have been

 

the duty of the defendants determined to be personally liable to

 

have paid the taxes or insurance premium had the mortgage not been

 

foreclosed. In case of any such

 

     (2) If a payment which is made prior to under subsection (1)

 

before the entry of the order confirming the commissioner's report

 

of sale, determination of the additional liability shall be made in

 

the order. In case of any such If a payment is made under

 

subsection (1) after the entry of the order, proof of the payment

 

may be made by filing recording with the register of deeds with

 

whom the deed of sale is deposited, recorded an affidavit of

 

payment by the purchaser or some one in his someone on behalf

 

having of the purchaser who has knowledge of the facts together

 

with a and that includes the statement under subsection (3). The

 

purchaser or person acting on behalf of the purchaser shall also

 

record either of the following, as applicable:

 

     (a) A receipt evidencing the payment of the taxes. , or, in

 

case of insurance premiums, an

 

     (b) An affidavit of an agent of the insurance company stating

 

the making of that the payment was made and also what portion of

 

the payment covers the premium for the period prior to before the

 

expiration of the period of redemption.

 

     (3) An affidavit of a purchaser or person acting on behalf of

 

a purchaser under subsection (2) shall include a statement of the

 

exact additional amount required to redeem the property under this

 

section, including any per diem amount, if applicable.

 

     (4) Redemption shall not be effected after the determination,

 

or filing of If an affidavit and receipt , or affidavits , as the

 

case may be, except upon payment of are recorded under subsection

 

(2), the property is not redeemed unless the additional sum or sums

 

amount is paid. In case If the property is not redeemed, the taxes

 

or insurance premiums paid after the confirmation of sale shall not

 

be added to or included in the deficiency judgment.

 

     Sec. 3232. (1) The officer or person making the sale of

 

property under this chapter shall forthwith immediately execute,

 

acknowledge, and deliver , to each purchaser a deed of the premises

 

bid off. by him; and if If the lands are situated in several

 

counties, he the officer or person shall make separate deeds of the

 

lands in each county , and specify therein in the deeds the precise

 

amounts amount for which each parcel of land therein described in

 

the deed was sold. And he The officer or person shall endorse upon

 

each deed the time when the same deed will become operative in case

 

if the premises are not redeemed according to law. Such deed or

 

deeds shall, as

 

     (2) As soon as practicable, and within 20 days after such the

 

sale, a deed made under subsection (1) shall be deposited recorded

 

with the register of deeds of the county in which the land therein

 

described in the deed is situated. , and the The register shall

 

endorse thereon on the deed the time the same it was received, and

 

for the better preservation thereof, shall record the same at

 

length in a book to be provided in his office for that purpose; it,

 

and shall index the same it in the regular general index of deeds,

 

and the records. The fee for recording the same deed shall be

 

included among with the other costs and expenses allowed by law. In

 

case such If the premises shall be are redeemed, the register of

 

deeds shall , at the time of destroying such deed, as provided in

 

section 3244 of this chapter, write on the face of such record the

 

word "Redeemed", stating at what date such entry is made, and

 

signing such entry with his official signature note in the index to

 

records the liber and page number or other unique identifying

 

number where the deed is recorded and indexed that the property has

 

been redeemed and the date of the redemption.

 

     Sec. 3240. (1) A purchaser's deed given under section 3232 is

 

void if the mortgagor, the mortgagor's heirs , executors, or

 

administrators or personal representative, or any person lawfully

 

claiming under the mortgagor or the mortgagor's heirs , executors,

 

or administrators or personal representative redeems the entire

 

premises sold by paying the amount required under subsection (2) ,

 

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 recorded

 

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, if the payment is made to

 

the register of deeds, an additional $5.00 $10.00 as a fee for the

 

care and custody of the redemption money. if the payment is made to

 

the register of deeds. 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 money to redeem the property. The

 

purchaser shall accept the amount computed by the designee.

 

     (3) If a distinct lot or parcel separately sold under this

 

chapter 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 sale of property under this chapter the

 

purchaser, the purchaser's heirs , executors, or administrators or

 

personal representative, or any person lawfully claiming under the

 

purchaser or the purchaser's heirs , executors, or administrators

 

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 the property

 

is redeemed 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 all of the following are filed with the register

 

of deeds with whom the deed is deposited recorded:

 

     (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 and the exact amount that is required to

 

redeem the property under subsection (4), including any per diem

 

amount, if applicable.

 

     (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 a redemption payment in under 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, any receipts,

 

insurance receipts, and or insurance agent's affidavit until

 

expiration of the period of redemption recorded under subsection

 

(4).

 

     (7) Subject to subsections (9) to (11), 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.

 

     (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.

 

     Sec. 3240a. (1) A person who redeems property under section

 

3240 by paying the redemption money to the register of deeds shall

 

deliver to the register of deeds with the money a notice to the

 

purchaser or a person designated under section 3240(2) that

 

contains all of the following information:

 

     (a) The name and address of the purchaser or designee.

 

     (b) The name and address of the person paying the money to

 

redeem the property.

 

     (c) The amount paid and the date on which it was paid to the

 

register.

 

     (d) The liber and page number, or other unique identifying

 

number, where the deed of sale given under section 3232 is

 

recorded.

 

     (e) A statement of the requirements of subsection (3).

 

     (2) On receiving a notice under subsection (1), the register

 

of deeds shall record the notice and then mail a copy of the notice

 

recorded to the purchaser or the designee at the address given in

 

the notice by certified mail, return receipt requested.

 

     (3) Within 14 days after receiving the notice under subsection

 

(2), the purchaser or designee shall respond to the register of

 

deeds by doing 1 of the following:

 

     (a) If the amount paid for redemption is sufficient to redeem

 

the property, signing and recording a quitclaim deed or other

 

instrument sufficient to release the purchaser's interest in the

 

property to the person paying the money. The purchaser or designee

 

shall include in the deed the liber and page number or other unique

 

identifying number where the deed of sale from which the property

 

is being redeemed is recorded. On recording a quitclaim deed or

 

other instrument under this subdivision, the register of deeds

 

shall note in the index entry the liber and page number or other

 

unique identifying number included in the deed pursuant to this

 

subdivision.

 

     (b) If the amount paid for redemption is not sufficient to

 

redeem the property, notifying the person paying the money that the

 

amount paid was insufficient and advising the person that if the

 

person who paid the money believes the amount paid was sufficient,

 

the person may seek relief from the appropriate court.

 

     (4) A purchaser or designee who fails to respond as required

 

by subsection (3) is liable to the person paying the money in the

 

amount of $1,000.00.

 

     Sec. 3248. If any A person entitled to receive such redemption

 

moneys money under this chapter who, shall, upon payment or tender

 

thereof of the money to him or her, refuse refuses to make and

 

acknowledge such certificate of payment, he shall be sign and

 

record a quitclaim deed or other instrument sufficient to release

 

the purchaser's interest in the property as required by section

 

3240a is liable to the person aggrieved thereby, by the refusal in

 

the sum amount of $100.00 damages, over and above all the $1,000.00

 

plus any actual damages sustained. , to be recovered in The

 

aggrieved person may recover the amount in a civil action. , except

 

that no damages of any kind may be recovered from any A register of

 

deeds who shall refuse refuses to accept tender of payment after

 

the time indorsed endorsed upon the deed when the same shall become

 

operative in case the premises are not redeemed, and the under

 

section 3232 is not liable for any damages caused by the refusal.

 

An officer or person making the a sale shall be entitled to of

 

property under this chapter may rely conclusively upon the recital

 

of the length of the redemption period contained in the notice of

 

foreclosure in making such indorsement the endorsement upon the

 

deed under section 3232.

 

     Enacting section 1. Section 3244 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.3244, is repealed.