SB-0749, As Passed Senate, March 11, 2008

SUBSTITUTE FOR

SENATE BILL NO. 749

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

(MCL 600.101 to 600.9947) by adding sections 3185 and 3285.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3185. (1) If a defendant in an action to foreclose a

mortgage on real estate or a land contract is a service member and

either the defendant entered into the mortgage or land contract

before becoming a service member or the defendant is deployed in

overseas service, the court on its own motion may, or on motion of

or in behalf of the service member shall, do either or both of the

following, unless the court determines that the ability of the

defendant to comply with the terms of the obligation secured by the

mortgage or land contract is not materially affected by the service

member's military service:

(a) Stay proceedings in the action until 6 months after the

end of the service member's period of military service.

(b) Issue another order that is equitable to conserve the

interests of the parties.

(2) This section does not apply to a mortgage or land contract

entered into before the effective date of the amendatory act that

added this section.

(3) As used in this section:

(a) "Active duty" means full-time duty in the active military

service of the United States. Active duty includes full-time

training duty, annual training duty, and attendance, while in the

active military service, at a school designated as a service school

by law or by the secretary of the military department concerned.

Active duty does not include full-time national guard duty.

(b) "Military service" means any of the following:

(i) Active duty.

(ii) If the service member is a member of the national guard,

service under a call to active service authorized by the president

or secretary of defense of the United States for a period of more

than 30 consecutive days under 32 USC 502(f) to respond to a

national emergency declared by the president and supported by

federal money.

(iii) A period during which the service member is absent from

active duty because of sickness, wounds, leave, or other lawful

cause.

the date on which the service member enters military service and

ending on the date on which the service member is released from

military service or dies while in military service.

(d) "Service member" means an individual who is in military

service and is a member of the armed services or reserve forces of

the United States or a member of the Michigan national guard.

Sec. 3285. (1) If a mortgagor is a service member, either the

mortgagor entered into the mortgage before becoming a service

member or the mortgagor is deployed in overseas service, and,

during the service member's period of military service or within 6

months after the end of the period of military service, the

mortgage given by the service member is foreclosed by advertisement

or the mortgaged real estate sold under a power of sale, the

foreclosure or sale is invalid unless the foreclosure or sale was

ordered by a court.

(2) A person shall not, individually or acting through another

person, foreclose, sell, or attempt to foreclose or sell real

estate with the knowledge that the foreclosure or sale is invalid

under this section. A person who violates this subsection is

subject to a civil fine of $2,000.00.

(3) The attorney general may file an action in the circuit

court to collect a civil fine under this section. A civil fine

collected under this section shall be deposited in the military

family relief fund created in section 3 of the military family

relief fund act, 2004 PA 363, MCL 35.1213.

(4) This section does not apply to a mortgage entered into

before the effective date of the amendatory act that added this

section.

(5) As used in this section: