HB-5859, As Passed House, May 19, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5859

                                                                             A bill to amend 1961 PA 236, entitled                                             

"Revised judicature act of 1961,"                                           

by amending sections 3204 and 3212 (MCL 600.3204 and 600.3212),             

as amended by 1994 PA 397.                                                  

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3204.  (1) A party may foreclose a mortgage by                         

2   advertisement if all of the following circumstances exist:                  

3       (a) A default in a condition of the mortgage has occurred, by               

4   which the power to sell became operative.                                   

5       (b)  A suit An action or proceeding has not been instituted,               

6   at law, to recover the debt  then remaining  secured by the                 

7   mortgage  ,  or any part of the mortgage; or, if  a suit an                

8   action or proceeding has been instituted, the  suit action or              

9   proceeding has been discontinued; or an execution  upon the on a

10  judgment rendered in  a suit an action or proceeding has been              

1   returned unsatisfied, in whole or in part.                                  

2       (c) The mortgage containing the power of sale has been                      

3   properly recorded.  and, if the party foreclosing is not the                

4   original mortgagee, a record chain of title exists evidencing the           

5   assignment of the mortgage to the party foreclosing the                     

6   mortgage.

7       (d) The party foreclosing the mortgage is either the owner of               

8   the indebtedness or of an interest in the indebtedness secured by           

9   the mortgage or the  serving servicing agent of the mortgage.              

10      (2)  When mortgages are If a mortgage is given to secure the               

11  payment of money by installments, each of the installments                  

12  mentioned in the mortgage after the first shall be  taken and               

13  considered to be treated as a separate and independent                     

14  mortgage.  The mortgage for each of the installments may be                 

15  foreclosed in the same manner and with the same effect as if a              

16  separate mortgage were given for each subsequent installment.  A            

17  redemption of a sale by the mortgagor  shall have has the same             

18  effect as if the sale for the installment had been made upon an             

19  independent prior mortgage.                                                 

20  (3) If the party foreclosing a mortgage by advertisement is                 

21  not the original mortgagee, a record chain of title shall exist             

22  prior to the date of sale under section 3216 evidencing the                 

23  assignment of the mortgage to the party foreclosing the mortgage.

24      Sec. 3212.  Every notice of foreclosure by advertisement                    

25  shall include all of the following:                                         

26      (a) The names of the mortgagor, the original mortgagee, and                 

27  the foreclosing assignee,  of a recorded assignment of the                  

1   mortgage if any.                                                           

2       (b) The date of the mortgage,  and  the date the mortgage was               

3   recorded, and, if the mortgage has been assigned, the date of the           

4   assignment or, if it has been assigned more than once, the last             

5   assignment.                                                                 

6       (c) The amount claimed to be due on the mortgage on the date                

7   of the notice.                                                              

8       (d) A description of the mortgaged premises that                            

9   substantially conforms with the description contained in the                

10  mortgage.                                                                   

11      (e) For a mortgage executed on or after January 1, 1965, the                

12  length of the redemption period as determined under section                 

13  3240.