WeVote
Log In

Bill

Bill

HB 5045

Relating to state financial administration; declaring an emergency.

2025 Regular Session

The bill clarifies that interest and the redemption period begin only after the deed is recorded, even if recording is delayed beyond 20 days.

In committee upon adjournment.
0
WeVote Research Nonpartisan
Bill Summary · HB 5045

HB 5045 — Summary (2025)

Statutes amended: 1966 PA 346, sections 48g and 48i (MCL 125.1448g & 125.1448i)
Introduced: Rep. Brian BeGole; filed 03/13/2025; electronically reproduced/introduced 09/24/2025; read first time and referred to Committee on Regulatory Reform (companion: SB 1893).

Purpose / Intent

HB 5045 revises procedures governing sales, recording, and redemption rights following foreclosure sales (sales involving the State Housing Development Authority and related land contract/purchase-money mortgage situations). The bill clarifies recording duties, establishes when interest and the statutory redemption period begin to run, and sets procedural requirements for computing and documenting redemption amounts.

Key provisions and changes

  • Deed contents and timing (MCL 125.1448g)

    • Requires the person making the sale to state in each deed the date it will become operative if the property is not redeemed.
    • Deeds must be recorded “as soon as practicable” and within 20 days after sale; recording fees are among allowable costs.
    • If a deed is not recorded within the 20-day period, the sale is not invalidated. Instead, on the date the deed is ultimately recorded:
    • Interest on the bid sum begins to accrue; and
    • The applicable redemption period begins.
    • Register of deeds duties: endorse receipt time, record and index deed, and, if redeemed, mark the deed “redeemed,” enter the date, and sign the entry.

  • Redemption mechanics (MCL 125.1448i)

    • Mortgagors (and their heirs/executors/etc.) and vendees under land contracts retain a statutory 6‑month redemption right (payment to purchaser or register of deeds), but the bill clarifies that interest on the bid sum begins only after the deed is recorded (linking to the recording-start rule above).
    • If payment is made to the register of deeds in a land contract redemption, a $5 fee to the register is required (for care/custody of funds).
    • Purchaser obligations at sale: purchaser must attach an affidavit to the deed stating the exact amount required to redeem (including any daily per diem amounts) and the redemption deadline as shown in the certificate of sale.
    • Affidavit may name a designee authorized to assist in computing redemption amounts, collect redemption funds, and charge a stated fee; the purchaser must accept the amount computed by that designee.
    • The affidavit’s stated amount must be the amount necessary for lawful redemption.

Who is affected

  • Mortgagors, vendees under land contracts, their heirs/representatives (people with statutory redemption rights).
  • Purchasers at foreclosure or tax sale (new affidavit and disclosure duties; ability to name designee).
  • County registers of deeds (recording/endorsement and marking/redemption duties; handling of redemption funds and $5 custodial fee).
  • Lenders/authorities involved in land contract/mortgage foreclosures and purchasers of foreclosed property.

Practical impact and policy notes

  • Shifts the effective start of interest accrual and the redemption period to the recording date when recording is delayed beyond the 20-day target, providing greater protection to redemption claimants when administrative delay occurs.
  • Imposes documentation and disclosure duties on purchasers (affidavit of exact redemption amount and optional designee authorization), which may reduce disputes over redemption calculations but could introduce fees via designees.
  • Makes sales resilient to recording delays (sale not invalidated by late recording), while tying economic consequences (interest, redemption timing) to the actual recording date.
  • Procedural clarity for registers of deeds (endorsements and marking redeemed deeds) may reduce record-keeping ambiguities.

Legislative status

  • Filed 03/13/2025; electronically reproduced and formally introduced 09/24/2025; read first time and referred to Committee on Regulatory Reform. Companion bill: SB 1893.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.