October 23, 2007, Introduced by Rep. Young and referred to the Committee on Banking and Financial Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 3110, 3120, 3204, and 3212 (MCL 600.3110,
600.3120, 600.3204, and 600.3212), sections 3204 and 3212 as
amended by 2004 PA 186.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3110. (1) Whenever If a complaint is filed for
the
satisfaction
or foreclosure of any a mortgage on real estate or
land
contract, upon which there is due any interest or any a
portion or installment of the principal and there are other
portions or installments to become due subsequently, the complaint
shall
be dismissed upon the defendant's bringing into court if the
defendant, at any time before the judgment of sale, pays to the
court the principal and interest due, with costs.
(2) If the complaint described in subsection (1) is for the
foreclosure of a mortgage of residential real estate, and if 18
months have passed since the defendant first failed to pay an
installment under the mortgage, the complaint shall be dismissed
if, regardless of whether the mortgagee has accelerated the balance
secured by the mortgage, the defendant pays to the court only the
portions or installments that are unpaid and interest on those
portions and installments, not portions or installments to become
due subsequently.
Sec. 3120. (1) If, after a judgment of sale is entered,
against
him , the defendant brings into pays to the court the
principal and interest due with costs, the proceedings in the
action
shall be stayed, ; but
the court shall enter a judgment of
foreclosure
and sale. to be enforced by a further order of the
court
upon a subsequent default If
the defendant later defaults in
the
payment of any portion or installment of the principal , or of
any
interest thereafter to become that
later becomes due, the court
shall enter an order to enforce the judgment of foreclosure and
sale.
(2) If the real estate that is the subject of the judgment of
foreclosure and sale under subsection (1) is residential real
estate, and if less than 18 months have passed since the defendant
first failed to pay an installment under the mortgage, the amount
of principal and interest due shall not include any accelerated
balance secured by the mortgage.
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, the
action or proceeding has been discontinued; or an execution on a
judgment rendered in an action or proceeding has been returned
unsatisfied, in whole or in part.
(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 shall 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 real estate that is the subject of the mortgage
being foreclosed is residential real estate, and if less than 18
months have passed since the mortgagor first failed to pay an
installment under the mortgage, the mortgage shall only be
foreclosed as to the installments that are due and have not been
paid, any interest on the unpaid installments, and costs, and not
as to any accelerated indebtedness secured by the mortgage.
(4) (3)
If the party foreclosing a mortgage
by advertisement
is not the original mortgagee, a record chain of title shall exist
prior to the date of sale under section 3216 evidencing the
assignment of the mortgage to the party foreclosing the mortgage.
Sec. 3212. (1) Every notice of foreclosure by advertisement
shall include all of the following:
(a) The names of the mortgagor, the original mortgagee, and
the foreclosing assignee, if any.
(b) The date of the mortgage and the date the mortgage was
recorded.
(c) The amount claimed to be due on the mortgage on the date
of the notice.
(d) A description of the mortgaged premises that substantially
conforms with the description contained in the mortgage.
(e) For a mortgage executed on or after January 1, 1965, the
length of the redemption period as determined under section 3240.
(2) If the real estate that is the subject of the mortgage
being foreclosed is residential real estate, and if less than 18
months have passed since the mortgagor first failed to pay an
installment under the mortgage, the amount claimed to be due on the
mortgage under subsection (1) shall only include the installments
that are due and have not been paid, any interest on the unpaid
installments, and costs and shall not include any accelerated
indebtedness secured by the mortgage.