SB-1666, As Passed Senate, December 11, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1666

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending sections 3208, 3216, and 3240 (MCL 600.3208, 600.3216,

and 600.3240), section 3240 as amended by 2006 PA 579.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3208. (1) Notice that ~~the~~ a mortgage will be foreclosed

by a sale of the mortgaged premises, or some part of them, shall be

given by publishing the same for 4 successive weeks at least once

in each week, in a newspaper published in the county where the

premises included in the mortgage and intended to be sold, or some

part of them, are situated. If no a newspaper is not published in

the county, the notice shall be published in a newspaper published

in an adjacent county. ~~In every case within~~ Within 15 days after

the first publication of the notice, a true copy shall be posted in

a conspicuous place upon any part of the premises described in the

notice.

(2) After April 1, 2009 and before the home foreclosure

prevention act is repealed, a person who publishes a first notice

under this section regarding a mortgage on residential property

described in section 3240(8) shall include in the notice and all

subsequent notices a statement by the person that both of the

following are true:

(a) Notice was sent as required by section 3 of the home

foreclosure prevention act.

(b) The date that the notice is published is on or after the

applicable date to commence proceedings to foreclose the mortgage

under section 4 of the home foreclosure prevention act.

Sec. 3216. (1) ~~The~~ A sale under this chapter shall be at

public sale, between ~~the hour of 9 o'clock in the forenoon and 4~~

~~o'clock in the afternoon~~ 9 a.m. and 4 p.m., at the place of holding

the circuit court ~~within~~ in the county in which the premises to be

sold, or some part of them, are situated. ~~, and~~ The sale shall be

made by the person appointed for that purpose in the mortgage, or

by the sheriff, undersheriff, or a deputy sheriff of the county, to

the highest bidder.

(2) If the notices of foreclosure sale under section 3208 fail

to include the statement required by section 3208 or if a statement

included in a notice is materially inaccurate, the person making

the sale under subsection (1) shall not conduct the sale until the

party attempting to foreclose by advertisement has complied with

the home foreclosure prevention act.

Sec. 3240. (1) A purchaser's deed is void if the mortgagor,

the mortgagor's heirs, executors, or administrators, or any person

lawfully claiming under the mortgagor or the mortgagor's heirs,

executors, or administrators redeems the entire premises sold by

paying the amount required under subsection (2), within the

applicable time limit prescribed in subsections (7) to (12), to the

purchaser or the purchaser's executors, administrators, or assigns,

or to the register of deeds in whose office the deed is deposited

for the benefit of the purchaser.

(2) The amount required to be paid under subsection (1) is the

sum that was bid for the entire premises sold, with interest from

the date of the sale at the interest rate provided for by the

mortgage, together with the amount of the sheriff's fee paid by the

purchaser under section 2558(2)(q), and an additional $5.00 as a

fee for the care and custody of the redemption money if the payment

is made to the register of deeds. The register of deeds shall not

determine the amount necessary for redemption. The purchaser shall

attach an affidavit with the deed to be recorded under this section

that states the exact amount required to redeem the property under

this subsection, including any daily per diem amounts, and the date

by which the property must be redeemed shall be stated on the

certificate of sale. The purchaser may include in the affidavit the

name of a designee responsible on behalf of the purchaser to assist

the person redeeming the property in computing the exact amount

required to redeem the property. The designee may charge a fee as

stated in the affidavit and may be authorized by the purchaser to

receive redemption funds. The purchaser shall accept the amount

computed by the designee.

(3) If a distinct lot or parcel separately sold is redeemed,

leaving a portion of the premises unredeemed, the deed shall be

void only to the redeemed parcel or parcels.

(4) If after the sale the purchaser, the purchaser's heirs,

executors, or administrators, or any person lawfully claiming under

the purchaser or the purchaser's heirs, executors, or

administrators pays taxes assessed against the property, amounts

necessary to redeem senior liens from foreclosure, condominium

assessments, homeowner association assessments, community

association assessments, or premiums on an insurance policy

covering any buildings located on the property that under the terms

of the mortgage it would have been the duty of the mortgagor to pay

if the mortgage had not been foreclosed and that are necessary to

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

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

specified in subsection (2) plus the amounts specified in this

subsection with interest on the amounts specified in this

subsection from the date of the payment to the date of redemption

at the interest rate specified in the mortgage, if all of the

following are filed with the register of deeds with whom the deed

is deposited:

(a) An affidavit by the purchaser or someone in his or her

behalf who has knowledge of the facts of the payment showing the

amount and items paid.

(b) The receipt or copy of the canceled check evidencing the

payment of the taxes, amounts necessary to redeem senior liens from

foreclosure, condominium assessments, homeowner association

assessments, community association assessments, or insurance

premiums.

company stating that the payment was made and what portion of the

payment covers the premium for the period before the expiration of

the period of redemption.

(5) If the redemption payment in subsection (4) includes an

amount used to redeem a senior lien from a nonjudicial foreclosure,

the mortgagor shall have the same defenses against the purchaser

with respect to the amount used to redeem the senior lien as the

mortgagor would have had against the senior lien.

(6) The register of deeds shall indorse on the documents filed

under subsection (4) the time they are received. The register of

deeds shall record the affidavit of the purchaser only and shall

preserve in his or her files the recorded affidavit, receipts,

insurance receipts, and insurance agent's affidavit until

expiration of the period of redemption.

(7) Subject to subsections (9) to (11), for a mortgage

executed on or after January 1, 1965, on commercial or industrial

property, or multifamily residential property in excess of 4 units,

the redemption period is 6 months from the date of the sale.

(8) Subject to subsections (9) to (11), for a mortgage

executed on or after January 1, 1965, on residential property not

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

claimed to be due on the mortgage at the date of the notice of

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

secured by the mortgage, the redemption period is 6 months.

However, if the mortgagor has mailed the form under section 3(3) of

the home foreclosure prevention act to the mortgage servicer, the

redemption period under this subsection is reduced to 5 months.

(9) Subject to subsection (10), for a mortgage on residential

property not exceeding 4 units, if the property is abandoned as

determined under section 3241, the redemption period is 3 months.

(10) For a mortgage on residential property not exceeding 4

units, if the amount claimed to be due on the mortgage at the date

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

indebtedness secured by the mortgage and the property is abandoned

as determined under section 3241, the redemption period is 1 month.

(11) If the property is abandoned as determined under section

3241a, the redemption period is 30 days or until the time to

provide the notice required by section 3241a(c) expires, whichever

is later.

(12) If subsections (7) to (11) do not apply, the redemption

period is 1 year from the date of the sale.

(13) The amount stated in any affidavits recorded under this

section shall be the amount necessary to satisfy the requirements

for redemption under this section.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) House Bill No. 6614.

(b) House Bill No. 6615.