Act No. 116

Public Acts of 2022

Approved by the Governor

June 24, 2022

Filed with the Secretary of State

June 24, 2022

EFFECTIVE DATE: September 22, 2022

 

state of michigan

101st Legislature

Regular session of 2022

Introduced by Reps. Bolden and Filler

ENROLLED HOUSE BILL No. 4800

AN ACT to amend 1961 PA 236, entitled An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of the courts, and of the judges and other officers of the courts; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in the courts; pleading, evidence, practice, and procedure in civil and criminal actions and proceedings in the courts; to provide for the powers and duties of certain state governmental officers and entities; to provide remedies and penalties for the violation of certain provisions of this act; to repeal all acts and parts of acts inconsistent with or contravening any of the provisions of this act; and to repeal acts and parts of acts, by amending section 3204 (MCL 600.3204), as amended by 2018 PA 15.

The People of the State of Michigan enact:

Sec. 3204. (1) A party may foreclose a mortgage by advertisement if all of the following circumstances exist:

(a) A default in a condition of the mortgage has occurred, by which the power to sell became operative.

(b) An action or proceeding has not been instituted, at law, to recover the debt secured by the mortgage or any part of the mortgage or, if an action or proceeding has been instituted, either the action or proceeding has been discontinued or an execution on a judgment rendered in the action or proceeding has been returned unsatisfied, in whole or in part. For purposes of this subdivision, neither of the following is an action or proceeding to recover the debt:

(i) An action or proceeding for the appointment of a receiver.

(ii) An action or proceeding under the Michigan uniform assignment of rents act to enforce an assignment of rents.

(c) The mortgage containing the power of sale has been properly recorded.

(d) The party foreclosing the mortgage is either the owner of the indebtedness or of an interest in the indebtedness secured by the mortgage or the servicing agent of the mortgage.

(2) If a mortgage is given to secure the payment of money by installments, each of the installments mentioned in the mortgage after the first must be treated as a separate and independent mortgage. The mortgage for each of the installments may be foreclosed in the same manner and with the same effect as if a separate mortgage were given for each subsequent installment. A redemption of a sale by the mortgagor has the same effect as if the sale for the installment had been made upon an independent prior mortgage.

(3) If the party foreclosing a mortgage by advertisement is not the original mortgagee, a record chain of title must exist before the date of sale under section 3216 evidencing the assignment of the mortgage to the party foreclosing the mortgage.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

 

Enacting section 2. This amendatory act does not take effect unless House Bill No. 4799 of the 101st Legislature is enacted into law.

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This act is ordered to take immediate effect.

Clerk of the House of Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor