PROPERTY REDEMPTION; REDEMPTION FEE H.B. 4226 (H-1):
SUMMARY OF HOUSE-PASSED BILL
IN COMMITTEE
House Bill 4226 (Substitute H-1 as passed by the House)
Sponsor: Representative Ryan Berman
House Committee: Financial Services
Ways and Means
Senate Committee: Insurance and Banking
CONTENT
The bill would amend Chapter 32 (Foreclosure of Mortgages by Advertisement) of the Revised Judicature Act to set a $250 limit on the fee charged by a designee of a purchaser of foreclosed property for assisting in computing the amount required to redeem the property.
If property is sold at a foreclosure sale under Chapter 32, there is a redemption period during which the mortgagor may recover, or "redeem", the property by paying the redemption amount and required fees.
The purchaser of the property must provide an affidavit with the deed to be recorded that states the exact amount required to redeem the property. 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 purchaser must accept the amount computed by the designee.
The designee may charge a fee as stated in the affidavit and may be authorized by the purchaser to receive redemption money. Under the bill, the designee could charge a fee of not more than $250.
MCL 600.3240 Legislative Analyst: Stephen Jackson
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: Michael Siracuse
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.