SB-0931, As Passed House, December 9, 2004

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 931

                                                                             A bill to amend 1966 PA 346, entitled                                             

"State housing development authority act of 1966,"                          

by amending sections 48i and 49j (MCL 125.1448i and 125.1449j),             

section 48i as added by 1981 PA 173 and section 49j as amended by           

1993 PA 221.                                                                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 48i.  (1) The mortgagor,  ; his or her the mortgagor's

2   heirs, executors,  or  administrators,  ;  or any person lawfully           

3   claiming  from or  under the mortgagor or the mortgagor's heirs,            

4   executors, or administrators may redeem the entire premises sold            

5   by paying, within 6 months from the  time date of the sale, to             

6   the purchaser  ; to or the purchaser's executors,                          

7   administrators, or assigns,  ;  or to the register of deeds in              

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

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

Senate Bill No. 931 (H-1) as amended December 9, 2004

1   bid with interest from the  time date of the sale at the                   

2   interest rate  percent borne provided for by the mortgage.                 

3   (2) The vendee of a land contract,  ; his or her the                       

4   vendee's heirs, executors,  or  administrators,  ;  or any person           

5   lawfully claiming  from or  under the vendee of a land contract             

6   or the vendee's heirs, executors, or administrators  of the                 

7   vendee  of a land contract may redeem the entire premises sold              

8   within 6 months from the  time date of the sale by paying to the           

9   purchaser  ; to or the purchaser's executors, administrators, or           

10  assigns,  ;  or to the register of deeds in whose office the deed           

11  of sale is deposited as provided in the court rules, for the                

12  benefit of the purchaser, the sum which was bid with interest               

13  from the  time date of the sale at the interest rate  percent              

14  borne provided for by the land contract.  In case the sum is               

15  paid to the register of deeds, the sum of $5.00 shall be paid to            

16  the register of deeds as a fee for the care and custody of the              

17  redemption money.   After these sums have been paid

18  (3) Upon the payment of sums required under this section, the               

19  deed of sale is void.  and of no effect, but in case any If a

20  distinct lot or parcel separately sold is redeemed, leaving a               

21  portion of the premises unredeemed, then the deed of sale is                

22  inoperative merely void only as to the portion or portions of             

23  the premises which are redeemed.  and to the portions not                   

24  redeemed it remains valid and of full effect. [The register of deeds

25  shall not determine the amount necessary for redemption.

26                                      ]  The purchaser shall attach           

27  an affidavit with the deed to be recorded that states the exact             

Senate Bill No. 931 (H-1) as amended December 9, 2004

1   amount required to redeem the property, including any daily per             

2   diem amounts, and the date by which the property must be redeemed           

3   shall be stated in the certificate of sale.  [                    

4                                                                               

5                                                  ]  The purchaser             

6   may include in the affidavit the name of a designee responsible             

7   on behalf of the purchaser to assist the person redeeming the               

8   property in computing the exact amount required to redeem the               

9   property.  The designee may charge a fee as stated in the                   

10  affidavit [and may be authorized by the purchaser to receive redemption funds].  The purchaser shall accept the amount computed by the                           

11  designee.

[(4) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.]

12      Sec. 49j.  (1) If the mortgagor,  ; his or her the                         

13  mortgagor's heirs, executors,  or  administrators,  ;  or any               

14  person lawfully claiming  from, or  under the mortgagor or the              

15  mortgagor's heirs, executors, or administrators, redeems the                

16  entire premises sold within the  applicable time limit time

17  prescribed in this section by paying to the purchaser  ; to or

18  the purchaser's executors, administrators, or assigns,  ;  or to            

19  the register of deeds in whose office the deed is deposited for             

20  the benefit of the purchaser, the sum which was bid for the                 

21  premises, with interest from the  time date of the sale at the             

22  interest rate  percent, borne provided for by the mortgage, and            

23  in case the payment is made to the register of deeds, the sum of            

24  $5.00 as a fee for the care and custody of the redemption money,            

25  then the deed  shall be is void.  and of no effect.  If a                  

26  distinct lot or parcel separately sold is redeemed, leaving a               

27  portion of the premises unredeemed, then the deed  shall be                 

Senate Bill No. 931 (H-1) as amended December 9, 2004

1   inoperative merely is void only as to the parcel or parcels  so

2   redeemed.  , and to those portions not so redeemed shall remain             

3   valid and of full effect. [The register of deeds shall not determine the

4   amount necessary for redemption.

5                     ]  The purchaser shall attach an affidavit with           

6   the deed to be recorded that states the exact amount required to            

7   redeem the property, including any daily per diem amounts, and              

8   the date by which the property must be redeemed shall be stated             

9   in the certificate of sale.  [                                  

10                                                                              

11                                ]  The purchaser may include in the           

12  affidavit the name of a designee responsible on behalf of the               

13  purchaser to assist the person redeeming the property in                    

14  computing the exact amount required to redeem the property.  The            

15  designee may charge a fee as stated in the affidavit [and may be authorized by the purchaser to receive redemption funds].  The                                

16  purchaser shall accept the amount computed by the designee.

17  (2) If, following the sale, the purchaser pays  a sum as any

18  taxes assessed against the property or insurance premiums  upon             

19  an insurance policy  covering any buildings located on the                  

20  property which under the terms of the mortgage  it would have               

21  been were the duty of the mortgagor  to have paid, had the                 

22  mortgage not been foreclosed,  and  which premiums  are necessary           

23  to keep the policy in force until the expiration of the period of           

24  redemption, and the purchaser or  someone in his or her behalf a           

25  representative of the purchaser having knowledge of the facts               

26  makes may make an affidavit of the payment showing the amount             

27  and items paid, together with the receipt  evidencing the of

1   payment of the taxes or insurance premiums,  as the case may be,

2   together with an affidavit of an insurance agent of the insurance           

3   company stating the making of the payment and also what portion             

4   of the policy covers the premium for the period  prior to before

5   the expiration of the period of redemption, the affidavits and              

6   the receipt shall be filed with the register of deeds with whom             

7   the deed is deposited, who shall endorse on the deed the time the           

8   affidavits and receipt were received.  The register of deeds                

9   shall record  at length  the affidavit of the purchaser only and            

10  shall preserve in his or her files file the recorded affidavit,           

11  together with the tax and insurance receipts and insurance                  

12  agent's affidavit, until expiration of the period of redemption.            

13  (3) After the purchaser's affidavit is recorded under this                  

14  section, redemption shall only be made upon payment of the sum              

15  specified in  this subsection plus the amount shown by the                  

16  affidavits and receipts to have been so paid subsections (1) and           

17  (2), with interest on the amount, from the date of the payment to           

18  the date of redemption, at the interest rate specified in the               

19  mortgage.                                                                   

20  (4)  (2)  In the case of a mortgage executed on commercial or               

21  industrial property, or multifamily residential property in                 

22  excess of 4 units, the redemption period is 6 months from the               

23  time of the sale.                                                           

24  (5)  (3)  In the case of a mortgage executed on residential                 

25  property not exceeding 4 units and not more than 3 acres in size,           

26  if the amount claimed to be due on the mortgage at the date of              

27  the notice of foreclosure is more than 66-2/3% of the original              

Senate Bill No. 931 (H-1) as amended December 9, 2004

1   indebtedness secured by the mortgage, the redemption period is 6            

2   months.                                                                     

3   (6)  (4)  In the case of a mortgage on residential property                 

4   not exceeding 4 units and not more than 3 acres in size, if the             

5   property is abandoned as determined  pursuant to under section             

6   49k, the redemption period is 3 months.                                     

7   (7)  (5)  In the case of any mortgage on residential property               

8   not exceeding 4 units and not more than 3 acres in size, if the             

9   amount claimed to be due on the mortgage at the date of the                 

10  notice of foreclosure is more than 66-2/3% of the original                  

11  indebtedness secured by the mortgage and the property is                    

12  abandoned as determined  pursuant to under section 49k, the                

13  redemption period is 1 month.                                               

14  (8)  (6)  If the property is abandoned as determined                        

15  pursuant to under section 49v, the redemption period is 30                

16  days.                                                                       

17  (9)  (7)  In any other case not otherwise described in this                 

18  section, the redemption period is 1 year from the date of the               

19  sale.                                                                       

20  (10) If an automation fund is established under section 2568                

21  of the revised judicature act of 1961, MCL 600.2568, any fees or            

22  charges collected by the register of deeds under this section or            

23   section 48i shall be credited to the automation fund.

[(11) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.]