SB-0931, As Passed Senate, December 2, 2004                                 

    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            

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 redemption               

25  amount shall be determined by the redeeming party without the               

26  assistance of the register of deeds.  The purchaser shall include           

27  an affidavit with the recorded deed that states the exact amount            

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

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

3   shall be stated in the certificate of sale.

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

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

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

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

8   entire premises sold within the  applicable time limit time

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

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

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

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

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

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

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

16  $5.00 as a fee for the care and custody of the redemption money,            

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

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

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

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

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

22  valid and of full effect.

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

24  taxes assessed against the property or insurance premiums  upon             

25  an insurance policy  covering any buildings located on the                  

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

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

1   mortgage not been foreclosed,  and  which premiums  are necessary           

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

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

4   representative of the purchaser having knowledge of the facts               

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

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

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

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

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

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

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

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

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

14  affidavits and receipt were received.  The register of deeds                

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

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

17  together with the tax and insurance receipts and insurance                  

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

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

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

21  specified in  this subsection plus the amount shown by the                  

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

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

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

25  mortgage.                                                                   

26  (4)  (2)  In the case of a mortgage executed on commercial or               

27  industrial property, or multifamily residential property in                 

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

2   time of the sale.                                                           

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

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

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

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

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

8   months.                                                                     

9   (6)  (4)  In the case of a mortgage on residential property                 

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

11  property is abandoned as determined  pursuant to under section             

12  49k, the redemption period is 3 months.                                     

13  (7)  (5)  In the case of any mortgage on residential property               

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

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

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

17  indebtedness secured by the mortgage and the property is                    

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

19  redemption period is 1 month.                                               

20  (8)  (6)  If the property is abandoned as determined                        

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

22  days.                                                                       

23  (9)  (7)  In any other case not otherwise described in this                 

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

25  sale.                                                                       

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

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

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

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