A new law in Michigan may bring significant changes to the state’s foreclosure statute. House Bill 4544, amending section 3240 of the Revised Judicature Act of 1961, was signed into law on December 21, 2011 and applies to foreclosure sales held on or after February 1, 2012.
Under section 3240, the register of deeds shall not determine the amount necessary for redemption of foreclosed property—unless the property is located in a county with a population of more than 750,000 and less than 1.5 million and the person entitled to redeem the property requests and pays the register of deeds to make this determination. Rather, the purchaser of foreclosed property, when recording the deed, must attach an affidavit to the deed that states the exact amount required to redeem the property, including any daily per diem amounts.
Additionally, the purchaser may appoint a designee to represent the purchaser and assist with computing the exact amount required to redeem the property. However, the value stated in the affidavits recorded under this law will be the exact amount necessary to satisfy the redemption requirements.
For more information, visit www.wolterskluwerfs.com.