Bill > HB5153

This bill modifies Michigan's foreclosure law by making several key changes to how property redemption and surplus money are handled after a foreclosure sale. For property redemption, the bill introduces a new provision that limits the ability of parties with recorded interests to redeem a property after a foreclosure notice is filed, essentially restricting redemption rights to the original mortgagor or their legal heirs. In the case of surplus money after a foreclosure sale, the bill clarifies the process for distributing any remaining funds, requiring the sale officer to pay surplus money to the mortgagor, but allowing other potential claimants with subsequent mortgages or liens to file a claim with the court. The bill also adds a restriction on the mortgagor's right to surplus money, making it non-transferable after the first publication of the foreclosure notice, except through inheritance. These changes aim to provide more clarity and structure to the foreclosure process, particularly regarding redemption rights and the distribution of any excess funds from the sale. The bill applies to various types of properties, including residential, commercial, industrial, and agricultural properties, with different redemption periods based on the property type and specific circumstances.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5153