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HB-5046, As Passed House, June 24, 2026
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SUBSTITUTE FOR
HOUSE BILL NO. 5046
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 3232 and 3240 (MCL 600.3232 and 600.3240),
section 3240 as amended by 2019 PA 130.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3232. (1) The officer or person making the sale under 1
section 3216 shall forthwith promptly execute, acknowledge, and 2
deliver , to each purchaser a deed of the premises bid off by him; 3
and if the person. If the lands are situated property is located in 4
several counties he more than 1 county, the person shall make a 5
separate deeds of deed for the lands property in each county , and 6
specify therein in each deed the precise amounts amount for which 7
each parcel of land therein described in the deed was sold. And he 8
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(2) The person making the sale shall endorse upon state in 1
each deed executed under subsection (1) the time when the same deed 2
will become operative, in case subject to subsection (5), if the 3
premises are not redeemed according to law. Such 4
(3) The deed or deeds shall, executed under subsection (1) 5
must, as soon as practicable , and within 20 days after such the 6
sale, be deposited with the register of deeds of the county in 7
which the land therein property described in the deed is situated, 8
and the located. The register shall endorse thereon do all of the 9
following: 10
(a) Endorse on the deed the time the same deed was received. , 11
and for the 12
(b) To better preservation thereof, shall preserve the deed, 13
record the same deed at length in a book to be provided in his the 14
register's office for that purpose. ; and shall index 15
(c) Index the same deed in the regular index of deeds. , and 16
the 17
(4) The fee for recording the same shall deed under subsection 18
(3) must be included among the other costs and expenses of the 19
foreclosure as allowed by law. In case such 20
(5) Both of the following apply for a deed executed under 21
subsection (1): 22
(a) If the deed is recorded within 20 days after the sale as 23
required under subsection (3), the applicable redemption period 24
runs from the date of the sale, and the interest on the amount that 25
was bid begins to accrue from the date of the sale. 26
(b) If the deed is not recorded within 20 days after the sale 27
as required under subsection (3), the sale is not invalid, but the 28
applicable redemption period begins on the date the deed is 29
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recorded, and the interest on the amount that was bid begins to 1
accrue from the date the deed is recorded. 2
(6) If the premises shall be described in a deed recorded 3
under subsection (3) is redeemed, the register of deeds shall, at 4
the time of destroying such the deed , as provided in under section 5
3244, of this chapter, write on the face of such the record the 6
word "Redeemed", stating at what the date such the entry is made, 7
and signing such the entry with his the register's official 8
signature. 9
Sec. 3240. (1) A purchaser's deed under section 3232 is void 10
if the mortgagor, the mortgagor's heirs or personal representative, 11
or any person that has a recorded interest in the property lawfully 12
claiming under the mortgagor or the mortgagor's heirs or personal 13
representative redeems the entire premises sold by paying the 14
amount required under subsection (2) and any amount required under 15
subsection (4), within the applicable time limit prescribed in 16
subsections (7) to (12), to the purchaser or the purchaser's 17
personal representative or assigns, or to the register of deeds in 18
whose office the deed is deposited for the benefit of the 19
purchaser. 20
(2) The amount required to be paid under subsection (1) is the 21
amount that was bid for the entire premises sold, interest, from 22
the date of the sale, except as provided in section 3232(5), at the 23
interest rate provided for by the mortgage, the amount of the 24
sheriff's fee paid by the purchaser under section 2558(2)(q), and 25
an additional $5.00 as a fee for the care and custody of the 26
redemption money if the payment is made to the register of deeds. 27
Except as provided in subsection (14), the register of deeds shall 28
not determine the amount necessary for redemption. The purchaser 29
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shall provide an affidavit with the deed to be recorded under this 1
section that states the exact amount required to redeem the 2
property under this subsection, including any daily per diem 3
amounts, and the date by which the property must be redeemed, shall 4
subject to section 3232(5), must be stated on the certificate of 5
sale. The purchaser may include in the affidavit the name of a 6
designee responsible on behalf of the purchaser to assist the 7
person redeeming the property in computing the exact amount 8
required to redeem the property. The designee may charge a fee of 9
not more than $250.00 as stated in the affidavit and may be 10
authorized by the purchaser to receive redemption money. The 11
purchaser shall accept the amount computed by the designee. 12
(3) If a distinct lot or parcel separately sold is redeemed, 13
leaving a portion of the premises unredeemed, the deed is void only 14
to the redeemed parcel or parcels. 15
(4) If, after a sale under section 3216, the purchaser, the 16
purchaser's heirs or personal representative, or any person 17
lawfully claiming under the purchaser or the purchaser's heirs or 18
personal representative pays taxes assessed against the property, 19
amounts necessary to redeem senior liens from foreclosure, 20
condominium assessments, homeowner association assessments, 21
community association assessments, or premiums on an insurance 22
policy covering any buildings located on the property that under 23
the terms of the mortgage it would have been the duty of the 24
mortgagor to pay if the mortgage had not been foreclosed and that 25
are necessary to keep the policy in force until the expiration of 26
the period of redemption, the property may be redeemed only on 27
payment of the amount specified in subsection (2) plus the amounts 28
specified in this subsection with interest on the amounts specified 29
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in this subsection from the date of the payment to the date of 1
redemption at the interest rate specified in the mortgage. This 2
subsection does not apply unless all of the following are filed 3
with the register of deeds with whom the deed is deposited: 4
(a) An affidavit by the purchaser or someone in his or her 5
behalf who has knowledge of the facts of the payment showing the 6
amount and items paid. 7
(b) The receipt or copy of the canceled check evidencing the 8
payment of the taxes, amounts necessary to redeem senior liens from 9
foreclosure, condominium assessments, homeowner association 10
assessments, community association assessments, or insurance 11
premiums. 12
(c) An affidavit of an insurance agent of the insurance 13
company stating that the payment was made and what portion of the 14
payment covers the premium for the period before the expiration of 15
the period of redemption. 16
(5) If the redemption payment in subsection (4) includes an 17
amount used to redeem a senior lien from a nonjudicial foreclosure, 18
the mortgagor has the same defenses against the purchaser with 19
respect to the amount used to redeem the senior lien as the 20
mortgagor would have had against the senior lien. 21
(6) The register of deeds shall indorse on documents filed 22
under subsection (4) the time they are received. The register of 23
deeds shall record the affidavit of the purchaser only and shall 24
preserve in his or her files the recorded affidavit, receipts, 25
insurance receipts, and insurance agent's affidavit until 26
expiration of the period of redemption. 27
(7) Subject to section 3238, for a mortgage executed on or 28
after January 1, 1965, of commercial or industrial property, or 29
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multifamily residential property in excess of 4 units, the 1
redemption period is 6 months, from the date of the sale, except as 2
provided in section 3232(5). 3
(8) Subject to subsections (9) to (11) and section 3238, for a 4
mortgage executed on or after January 1, 1965, of residential 5
property not exceeding 4 units, if the amount claimed to be due on 6
the mortgage at the date of the notice of foreclosure is more than 7
66-2/3% of the original indebtedness secured by the mortgage, the 8
redemption period is 6 months, subject to section 3232(5). 9
(9) For a mortgage of residential property not exceeding 4 10
units, if the property is abandoned as determined under section 11
3241, the redemption period is 1 month, subject to section 3232(5). 12
(10) If the property is abandoned as determined under section 13
3241a, the redemption period is 30 days, subject to section 14
3232(5), or until the time to provide the notice required by 15
section 3241a(c) expires, whichever is later. 16
(11) Subject to section 3238, for a mortgage of property that 17
is used for agricultural purposes, the redemption period is 1 year, 18
from the date of the sale, except as provided in section 3232(5). 19
(12) If subsections (7) to (11) do not apply, and subject to 20
section 3238, the redemption period is 1 year, from the date of the 21
sale, except as provided in section 3232(5). 22
(13) The amount stated in any affidavits recorded under this 23
section is the amount necessary to satisfy the requirements for 24
redemption under this section. 25
(14) The register of deeds of a county with a population of 26
more than 750,000 and less than 1,500,000, at the request of a 27
person entitled to redeem the property under this section, shall 28
determine the amount necessary for redemption. In determining the 29
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amount, the register of deeds shall consider only the affidavits 1
recorded under subsections (2) and (4). A county, register of 2
deeds, or employee of a county or register of deeds is not liable 3
for damages proximately caused by an incorrect determination of an 4
amount necessary for redemption under subsection (2). 5
(15) A register of deeds may charge not more than $50.00 for 6
determining the amount necessary for redemption under this section. 7
(16) For purposes of this section, there is a presumption that 8
the property is used for agricultural purposes if, before the 9
foreclosure sale under this chapter, the mortgagor provides the 10
party foreclosing the mortgage and the foreclosing party's attorney 11
proof that the mortgagor filed a schedule F to the mortgagor's 12
federal income tax form 1040 for the year preceding the year in 13
which the proceedings to foreclose the mortgage were commenced and 14
records an affidavit with the register of deeds for the county in 15
which the property is located stating that the proof has been 16
delivered. If the mortgagor fails to provide proof and record an 17
affidavit as required by this subsection before the foreclosure 18
sale, there is a presumption that the property is not used for 19
agricultural purposes. The party foreclosing the mortgage or the 20
mortgagor may file a civil action to produce evidence to rebut a 21
presumption created by this subsection. An action under this 22
subsection must be filed before the expiration of the redemption 23
period that would apply if the property is determined not to be 24
used for agricultural purposes. 25