HOUSE BILL NO. 5152

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending section 3208 (MCL 600.3208) and by adding sections 3214 and 3222.

the people of the state of michigan enact:

Sec. 3208. Notice that the a mortgage will be foreclosed under this chapter by a sale of the mortgaged premises, or some part of them, shall the premises, must be given by publishing doing all of the following:

(a) Publishing the same notice for 4 successive weeks at least once in each week , in a newspaper published in the county where the premises included in the mortgage and intended to be sold, or some part of them, the premises, are situated. located. If no newspaper is published in the county, the notice shall must be published in a newspaper published in an adjacent county. In every case within

(b) Before the first publication of the notice under subdivision (a), recording a true copy of the notice with the register of deeds for the county or counties in which the premises are located.

(c) Within 15 days after the first publication of the notice under subdivision (a), posting a true copy shall be posted of the notice in a conspicuous place upon on any part of the premises described in the notice.

Sec. 3214. (1) If a mortgagor, the mortgagor's heirs or personal representative, or any person that has a recorded interest in the mortgaged premises that was obtained before the notice of foreclosure is recorded under section 3208, conveys the mortgaged premises after the notice of foreclosure is recorded and before the expiration of the applicable redemption period under section 3240, the conveyance is not valid unless a notice of rights that satisfies subsection (2) is attached to the instrument of conveyance and signed by each grantor.

(2) A notice of rights required under subsection (1) must contain the following language:

NOTICE TO SELLER: This document serves as a formal notice of certain rights that will be forfeited on the sale of this property. By signing this deed and completing the sale of the property, you will be waiving and relinquishing rights you may have under statute, as follows:

1. Right of Redemption: By selling the property, you permanently waive any and all rights to redeem or reclaim the property. The right of redemption allows a mortgagor, the property owner, to reclaim a foreclosed property by paying off the outstanding debt within a legally specified redemption period. This right is irrevocably forfeited on your completion of the sale.

2. Right to Occupancy During the Redemption Period: You further acknowledge that any rights to remain in the property during the redemption period, typically provided to the mortgagor by statute, will no longer be available to you. Once the conveyance is complete, you forfeit any and all rights to continue occupying the property.

3. Right to Surplus Proceeds: Your home may be worth more than the outstanding balance of your mortgage. If the home is sold at public auction, and the sale price is greater than the balance of the mortgage, you may be entitled to collect the remaining sale proceeds. By selling the property before the public auction, you will have no right to collect the surplus proceeds that may have resulted from the auction sale.

By signing below, you acknowledge that you are voluntarily waiving any and all of the above rights provided to you by statute, and you fully understand the legal effect of these waivers.

Sec. 3222. If a sale scheduled in a notice under section 3212 is cancelled by the party foreclosing the mortgage, a notice cancelling the notice of foreclosure must be recorded with the register of deeds for the county or counties in which the premises are located not later than 30 days after the sale is canceled.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S03787'25) or House Bill No. 5153 (request no. H03787'25) of the 103rd Legislature is enacted into law.