Summary — HB 6031 (Revised Judicature Act amendments re: foreclosure sales)
Status snapshot
- Bill: HB 6031 — amends sections 3208, 3212, 3216, and 3220 of 1961 PA 236 (MCL 600.3208, .3212, .3216, .3220).
- Introduced by Rep. Joey Andrews (bill reproduced 11/07/2024; first read 11/07/2024). Subsequent referrals and actions occurred in 2025; the bill was indefinitely postponed/withdrawn (5/03/2025) and later reported as having died in Ways & Means (6/16/2025).
- Purpose: permit and set procedures for conducting foreclosure-by-advertisement public sales online while adjusting related notice and adjournment rules.
Purpose and intent
- Modernize foreclosure-by-advertisement procedures to explicitly allow public foreclosure sales to be held online and to require online notice and platform standards to ensure public awareness and access.
Key provisions and changes
1. Authorization of online sales (MCL 600.3208, .3216)
- Foreclosure sales may be conducted either:
- in person at the county circuit court location, or
- online (explicitly allowed).
- Sale hours remain between 9:00 a.m. and 4:00 p.m.
Notice and publication requirements (MCL 600.3208, .3212)
- Existing requirement preserved: publish foreclosure notice at least once a week for 4 successive weeks in a newspaper in the county where the property is located (or adjacent county if no county newspaper).
- Within 15 days after first publication, a true copy of the notice must be posted conspicuously on the property.
- If the sale is online:
- the person conducting the sale must post the sale notice on the county’s website, and
- must give notice by any other means the person considers necessary to ensure public awareness.
- Foreclosure notice must include standard items (mortgagor/mortgagee names, mortgage date/recording, amount claimed due, property description, redemption period where applicable, attorney contact, military-service language for residential mortgages, purchaser-warning language).
- New required statement options in the notice specify whether the auction is in-person or online; for online sales, the notice must provide a website address where participation/observation details are available.
- The foreclosing party (or its agent) may not publish foreclosure notices in a newspaper in which it has a majority ownership interest.
Platform and conduct requirements for online auctions (MCL 600.3216)
- The person conducting an online sale must ensure the online auction platform is “secure, reliable, and accessible to all interested bidders.”
Adjournments and notices (MCL 600.3220)
- Adjournments must be posted where the sale is to be conducted; if the sale is online, the adjournment must be posted prominently on the online platform and on the county website, and by any other means previously used to give notice.
- If an adjournment is for more than one week, the adjournment must also be published in the newspaper where the original notice appeared (first publication within 10 days of adjournment and then once each full week during the adjournment period).
- Oral announcement of adjournment is not required.
Who is affected
- Borrowers/homeowners subject to foreclosure (changes how sales may be conducted and how notices are delivered).
- Mortgage holders, servicers, trustees, sheriffs and appointed sale officers, auction platform providers, county clerks/registers and newspapers.
- Title companies and potential purchasers (notice clarifies buyer due diligence and possible non-clear-title risks).
Procedural / timeline notes
- The bill revises statutory notice timelines (e.g., posting within 15 days of first publication) and adds parallel online notice duties.
- As of the latest legislative actions provided, HB 6031 was introduced and referred to committee but ultimately was indefinitely postponed and died in committee in 2025.
Practical implications & considerations
- Supports remote participation in foreclosure sales, which may increase bidder participation and convenience but raises concerns about platform security, equitable access for digitally underserved bidders, verification of bidders/payment processing, and preserving transparency of auctions.
- Imposes new public-notice responsibilities on foreclosing parties and county websites; implementation would require county IT readiness and clear standards for “secure, reliable, and accessible” auction platforms.
