SENATE BILL No. 931

 

 

January 28, 2004, Introduced by Senator HAMMERSTROM and referred to the Committee on Local, Urban and State Affairs.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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,                   

                                                                                

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

                                                                                

20  a 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.                               

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   entire premises sold within the  applicable time limit  time                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  $5.00 as a fee for the care and custody of the redemption money,            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  valid and of full effect.                                                   

                                                                                

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

                                                                                

18  any taxes assessed against the property or insurance premiums               

                                                                                

19  upon 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              


                                                                                

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                     

                                                                                

6   section 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.