Bulletin: MI000022

Date:
April 11, 2005
To:
All Issuing Offices in Michigan
RE:
Redemption from Foreclosure of Mortgage, Land Contract or Execution Sale

Dear Associates:

The provisions of MCL 600.3140 Statutory Foreclosure 600.3240 Judicial Foreclosure and 600.6062 have been amended to remove from the Register of Deeds the duty to determine the amount required to redeem from a foreclosure sale.

The law now requires the purchaser at a foreclosure sale to attach an affidavit to the foreclosure deed to be recorded.

The affidavit must:

1.  state the exact amount required to redeem the property,
2.  state any daily per diem amounts
3.  state the date by which the property must be redeemed on a certificate of the auctioneer, and
4.  if the purchaser has named a designee responsible to assist the person redeeming the property in computing the exact amount required, the name of the designee must be included

The law further provides that:

1.  the purchaser at foreclosure sale is bound by the redemption amount computed by its designee,
2.  the sum required to redeem may be paid to:

a.  the Register of Deeds
b.  the foreclosure purchaser, his or her representatives or assigns
c.  the officer who made the foreclosure sale
d.  and if authorized in the affidavit, the designee

The amendment now provides support for past practices of relying on redemption information from and payment to the attorney for the foreclosing lender purchaser. Now we only need to review the affidavit presented to the Register of Deeds to determine the authority of such attorney.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None