December 1, 2009, Introduced by Senator BROWN and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending sections 48g, 48i, 48j, 49h, 49j, 49m, and 49s (MCL
125.1448g, 125.1448i, 125.1448j, 125.1449h, 125.1449j, 125.1449m,
and 125.1449s), sections 48g, 48j, 49h, 49m, and 49s as added by
1981 PA 173 and sections 48i and 49j as amended by 2004 PA 540; and
to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 48g. (1) The person making the sale under section 48f
shall execute deeds specifying the names of the parties in the
action, the date of the land contract or mortgage held by the
authority, when and where it was recorded, a description of the
premises sold, and the amount for which each parcel of land
described
in the deed was sold. ; and The
person shall indorse upon
each deed the time it becomes operative if the premises are not
redeemed according to law. Unless the premises or any parcel of
them
the premises are redeemed within the time limited for
redemption, the
deed shall become becomes operative as to all
parcels
not redeemed , and shall
vest vests in the grantee named in
the
deed or his or her the
grantee's heirs or assigns all the
right,
title, and interest which the mortgagor had at the time of
the
execution of the mortgage was executed or at any time
thereafter
after the mortgage was
executed.
(2)
The deed of sale as As soon as practicable , and within 20
days
after the a sale
under section 48f, the deed of sale shall be
deposited with the register of deeds of the county in which the
land
described in the deed of sale is situated. , and the The
register
shall indorse upon the deed the time it was received, and
shall
record the deed at length, in
a book to be provided in his or
her
office for that purpose and shall
index the deed in the regular
general
index of deeds, and the records. The fee for recording the
deed shall be included among the other costs and expenses allowed
by
law. If the premises or any parcel of them are redeemed the
register
of deeds shall write on the face of the record the word
"redeemed"
and shall write at what date the entry is made and sign
the
entry with his or her official signature.
Sec.
48i. (1) The mortgagor, the mortgagor's heirs, executors,
administrators,
heir or personal
representative, or any person
lawfully
claiming under the mortgagor or the mortgagor's heirs,
executors,
or administrators heir or
personal representative may
redeem the entire premises sold under section 48f by paying, within
6
months from after the date of the sale, to the purchaser or the
purchaser's
executors, administrators, personal
representative or
assigns, or to the register of deeds in whose office the deed of
sale
is deposited recorded as provided in the court rules , for the
benefit
of the purchaser, the sum which amount
that was bid with
interest from the date of the sale at the interest rate provided
for by the mortgage.
(2)
The vendee of a land contract, the vendee's heirs,
executors,
administrators heir or
personal representative, or any
person
lawfully claiming under the vendee of a land contract or the
vendee's
heirs, executors, or administrators of a land contract
heir or personal representative may redeem the entire premises sold
under
section 48f within 6 months from after the
date of the sale
by
paying to the purchaser or the purchaser's executors,
administrators,
personal representative or assigns, or to the
register
of deeds in whose office the deed of sale is deposited
recorded
as provided in the court rules , for the benefit of the
purchaser,
the sum which amount that was bid with interest from the
date of the sale at the interest rate provided for by the land
contract.
In case the sum
(3)
If money for redemption is paid to the
register of deeds ,
the
sum of $5.00 shall be paid to the register of deeds as a fee
under this section, the person redeeming the property under
subsection (1) or (2) shall pay a fee of $10.00 to the register of
deeds
for the care and custody of the redemption
money.
(4) A person who redeems property under subsection (1) or (2)
by paying the redemption money to the register of deeds shall
deliver to the register of deeds with the money a notice to the
purchaser or designee under subsection (8) that contains all of the
following information:
(a) The name and address of the purchaser or designee.
(b) The name and address of the person paying the money to
redeem the property.
(c) The amount paid and the date on which it was paid to the
register.
(d) The liber and page number, or other unique identifying
number, where the deed of sale given under section 48f is recorded.
(e) A statement of the requirements of subsection (6).
(5) On receiving a notice under subsection (4), the register
of deeds shall record the notice and then mail a copy of the
recorded notice to the purchaser or designee at the address given
in the notice by certified mail, return receipt requested.
(6) Within 14 days after receiving the notice under subsection
(5), the purchaser or designee shall respond to the register of
deeds by doing 1 of the following:
(a) If the amount paid for redemption is sufficient to redeem
the property, signing and recording a quitclaim deed or other
instrument sufficient to release the purchaser's interest in the
property to the person paying the money. The purchaser or designee
shall include in the deed the liber and page number, or other
unique identifying number, where the deed of sale from which the
property is being redeemed is recorded. On recording a quitclaim
deed or other instrument under this subdivision, the register of
deeds shall note in the index entry the liber and page number, or
other unique identifying number, included in the deed pursuant to
this subdivision.
(b) If the amount paid for redemption is not sufficient to
redeem the property, notifying the person paying the money under
subsection (1) or (2) that the amount paid was insufficient and
advising the person that if the person who paid the money believes
the amount paid was sufficient, the person may seek relief from the
court.
(7)
(3) Upon the payment of sums the amount required to redeem
the property under this section, the deed of sale is void. If a
distinct lot or parcel separately sold is redeemed, leaving a
portion
of the premises unredeemed, then the deed of sale is void
only
as to the portion or portions of the premises which that are
redeemed.
(8) The register of deeds shall not determine the amount
necessary
for redemption to redeem
property sold under section 48f.
The
purchaser shall attach an affidavit with to the deed to be
recorded under section 48g that states the exact amount required to
redeem
the property, including any daily per diem amounts. ,
and
the
date by which the property must be redeemed shall be stated in
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 a
person who wishes to redeem 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 money for
redemption. funds.
The purchaser shall accept the amount computed
by the designee.
(9) (4)
The amount stated in any
affidavits an affidavit
recorded
under this section subsection
(8) shall be the amount
necessary to satisfy the requirements for redemption under this
section.
(10) A purchaser or designee who fails to respond as required
by subsection (6) is liable to the person paying the money in the
amount of $1,000.00.
Sec.
48j. (1) The A
court may make include a provision in any
a
judgment of foreclosure for the
adding to the amount determined
in
the judgment to be due, any sum or sums paid at any time that if
the purchaser at the foreclosure sale pays either of the following
after
the foreclosure sale and prior
to before the expiration of
the period of redemption and if under the terms of the mortgage or
land contract it would have been the duty of the defendants
determined to be personally liable under section 48k to make the
payment
had the mortgage or land contract not been foreclosed, as
taxes
the amount paid shall be
added to the amount determined to be
due in the judgment:
(a)
Taxes assessed against the property. or
the portion of the
(b)
A premium of any for an insurance
policy covering any
buildings
located on the premises as is required necessary to keep
the policy in force until the expiration of the period of
redemption. or
both the taxes assessed the property and the portion
of
the premium of any insurance policy covering any buildings
located
on the premises as is required to keep the policy in force
until
the expiration of the period of redemption, if under the
terms
of the mortgage it would have been the duty of the defendants
determined
to be personally liable to have paid the taxes or
insurance
premium had the mortgage not been foreclosed. In case of
any
such
(2)
If a payment which is made prior
to under subsection (1)
before the entry of the order confirming the report of sale by the
person making the sale, determination of the additional liability
shall
be made in the order. In case of any such If a payment is
made under subsection (1) after the entry of the order, proof of
the
payment may be made by filing recording
with the register of
deeds
with whom the deed of sale is deposited, recorded an
affidavit
of payment by the purchaser or someone in his or her on
behalf
having of the purchaser
who has knowledge
of the facts
together
with a and that includes the statement under subsection
(3). The purchaser or person acting on behalf of the purchaser
shall also record either of the following, as applicable:
(a)
A receipt evidencing the payment of the
taxes. , or, in
case
of insurance premiums, an
(b) An affidavit of an agent of the insurance company stating
the
making of that the payment was
made and also what portion of
the
payment covers the premium for the period prior to before the
expiration
of the period of redemption. Redemption shall not be
effected
after the determination, or filing of
(3) An affidavit of a purchaser or person acting on behalf of
a purchaser under subsection (2) shall include a statement of the
exact additional amount required to redeem the property under this
section, including any per diem amount, if applicable.
(4)
If an affidavit and receipt , or affidavits , as the case
may
be, except upon payment of are recorded under subsection (2),
the
property is not redeemed unless the
additional sum or sums
amount
is paid. In case If the
property is not redeemed, the taxes
or insurance premiums paid after the confirmation of sale shall not
be added to or included in the deficiency judgment.
Sec. 49h. (1) The officer or person making the sale of
property
under sections 49 to 49v shall forthwith
immediately
execute,
acknowledge, and deliver , to
each purchaser a deed of the
premises
bid off. by the officer or person making the sale; and if
If the lands are situated in several counties, the officer or
person making the sale shall make separate deeds of the lands in
each
county , and
specify in each deed the precise amount for which
each parcel of land described in the deed was sold. The officer or
person making the sale shall endorse upon each deed the time when
the
deed becomes operative , if the
premises are not redeemed
according
to law. Each deed shall, as
(2)
As soon as practicable, and within 20
days after such the
sale,
a deed made under subsection (1)
shall be deposited recorded
with the register of deeds of the county in which the land
described
in the deed is situated. , and the The register shall
endorse
on the deed the time the deed it
was received, and for the
better
preservation thereof, shall record the
deed at length in a
book
to be provided in his or her office for that purpose; it, and
shall
index the deed it in
the regular general index of deeds
records. The fee for recording the deed shall be included among
with
the other costs and expenses allowed by
law. In case such If
the
premises shall be are
redeemed, the register of deeds shall ,
at
the time of destroying the deed, as provided in section 49l,
write
on the face of the record the word "redeemed", stating at
what
date the entry is made, and signing the entry with his or her
official
signature note in the index
to records the liber and page
number, or other unique identifying number, where the deed is
recorded and indexed that the property has been redeemed and the
date of the redemption.
Sec.
49j. (1) If the mortgagor, the mortgagor's heirs,
executors,
administrators, heir or
personal representative, or any
person lawfully claiming under the mortgagor or the mortgagor's
heirs,
executors, or administrators, heir
or personal
representative redeems the entire premises sold under sections 49
to 49v within the time prescribed in this section by paying to the
purchaser
or the purchaser's executors, administrators, personal
representative or assigns, or to the register of deeds in whose
office
the deed is deposited recorded
for the benefit of the
purchaser,
the sum which amount that was bid for the premises, with
interest from the date of the sale at the interest rate provided
for
by the mortgage, and, in case if the payment is made to
the
register
of deeds, the sum of $5.00 $10.00
as a fee for the care
and
custody of the redemption money, then the deed is void. If a
distinct lot or parcel separately sold is redeemed, leaving a
portion of the premises unredeemed, then the deed is void only as
to the parcel or parcels redeemed. The register of deeds shall not
determine the amount necessary for redemption. The purchaser shall
attach an affidavit with the deed to be recorded 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 in 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 money to
redeem the property. The
purchaser shall accept the amount computed by the designee.
(2)
If, following after the sale
of property under sections 49
to 49v, the purchaser pays any taxes assessed against the property
or insurance premiums covering any buildings located on the
property
which that under the terms of the mortgage were the duty
of the mortgagor to pay and are necessary to keep the policy in
force
until the expiration of the period of redemption, and the
purchaser or a representative of the purchaser having knowledge of
the facts may make an affidavit of the payment showing the amount
and
items paid , together with the receipt of payment of the taxes
or
insurance premiums, together with an affidavit of an insurance
agent
of the insurance company stating the making of the payment
and
also what portion of the policy covers the premium for the
period
before the expiration of the period of redemption, the
affidavits
and the receipt and the exact amount that is required to
redeem the property under subsection (1), including any per diem
amount,
if applicable. The person making the affidavit shall be
filed
file the affidavit with the register of deeds with whom the
deed
is deposited, who recorded and attach to the affidavit the
receipt of payment of the taxes or insurance premiums and an
affidavit of an insurance agent of the insurance company stating
that the payment was made and also what portion of the payment
covers the premium for the period before the expiration of the
period of redemption. The register of deeds shall endorse on the
deed
the time the affidavits and receipt were other documents are
received .
The register of deeds shall and record
the affidavit of
the
purchaser only and file the
recorded affidavit, together with
the
tax and insurance receipts and insurance agent's affidavit,
until
expiration of the period of redemption affidavits and other
documents.
(3)
After the a purchaser's affidavit is recorded under this
section,
redemption shall the
property is redeemed only be made
upon
payment of the sum amounts
specified in subsections (1) and
(2),
with interest on the amount, amounts
from the date of the
payment
to the date of redemption , at the
interest rate specified
in the mortgage.
(4)
In the case of Subject to
subsections (6) to (8), for a
mortgage executed on commercial or industrial property, or
multifamily residential property in excess of 4 units, the
redemption period is 6 months from the time of the sale.
(5)
In the case of Subject to
subsections (6) to (8), for a
mortgage executed 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.
(6)
In the case of Subject to
subsection (7), for a mortgage
on residential property not exceeding 4 units and not more than 3
acres in size, if the property is abandoned as determined under
section 49k, the redemption period is 3 months.
(7)
In the case of For any mortgage 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 and the property is abandoned as determined
under section 49k, the redemption period is 1 month.
(8) If the property is abandoned as determined under section
49v, the redemption period is 30 days.
(9)
In any other case not otherwise described in this section
If subsections (4) to (8) do not apply, the redemption period is 1
year from the date of the sale.
(10) If an automation fund is established in the county under
section 2568 of the revised judicature act of 1961, 1961 PA 236,
MCL 600.2568, any fees or charges collected by the register of
deeds under this section or 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.
Sec.
49m. If any A person entitled to receive such redemption
moneys
money under sections 49 to
49v who, shall, upon payment or
tender
thereof of the money to him or her, refuse refuses to
make
and
acknowledge such certificate of payment, he or she shall be
sign and record a quitclaim deed or other instrument sufficient to
release the purchaser's interest in the property as required by
section
49s is liable to the person aggrieved thereby,
by the
refusal
in the sum amount of
$100.00 damages, over and above all
the
$1,000.00 plus
any actual damages sustained. ,
to be recovered
in
The aggrieved person may
recover the amount in a civil action. ,
except
that no damages of any kind may be recovered from any A
register of deeds who refuses to accept tender of payment after the
time
indorsed endorsed upon the deed when the deed becomes
operative
in case the premises are not redeemed, and the under
section 49h is not liable for any damages caused by the refusal. An
officer
or person making the a sale shall be of property under
sections 49 to 49v is entitled to rely conclusively upon the
recital of the length of the redemption period contained in the
notice
of foreclosure in making such indorsement the endorsement
upon the deed under section 49h.
Sec.
49s. (1) Upon the payment of the entire sum bid at such
sale,
and the interest thereon and expenses, as mentioned in
section
49j, to the register of deeds of the county in whose office
the
sheriff's deed shall have been deposited, the register of deeds
shall
give notice of such payment, by mail or otherwise to the
purchaser
or his or her agent or attorney. A
person who redeems
property under section 49j by paying the redemption money to the
register of deeds shall deliver to the register of deeds with the
money a notice to the purchaser or a person designated under
section 49j(1) that contains all of the following information:
(a) The name and address of the purchaser or designee.
(b) The name and address of the person paying the money to
redeem the property.
(c) The amount paid and the date on which it was paid to the
register.
(d) The liber and page number, or other unique identifying
number, where the deed of sale given under section 49h is recorded.
(e) A statement of the requirements of subsection (3).
(2) On receiving a notice under subsection (1), the register
of deeds shall record the notice and then mail a copy of the notice
recorded to the purchaser or the designee at the address given in
the notice by certified mail, return receipt requested.
(3) Within 14 days after receiving the notice under subsection
(2), the purchaser or designee shall respond to the register of
deeds by doing 1 of the following:
(a) If the amount paid for redemption is sufficient to redeem
the property, signing and recording a quitclaim deed or other
instrument sufficient to release the purchaser's interest in the
property to the person paying the money. The purchaser or designee
shall include in the deed the liber and page number or other unique
identifying number where the deed of sale from which the property
is being redeemed is recorded. On recording a quitclaim deed or
other instrument under this subdivision, the register of deeds
shall note in the index entry the liber and page number, or other
unique identifying number, included in the deed pursuant to this
subdivision.
(b) If the amount paid for redemption is not sufficient to
redeem the property, notifying the person paying the money that the
amount paid was insufficient and advising the person that if the
person who paid the money believes the amount paid was sufficient,
the person may seek relief from the appropriate court.
(4) A purchaser or designee who fails to respond as required
by subsection (3) is liable to the person paying the money in the
amount of $1,000.00.
Enacting section 1. Section 49l of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1449l, is
repealed.