Michigan Modifies Foreclosure Sale Redemption Period Property Inspection Provisions

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On May 20, Michigan Governor Rick Snyder signed HB 5277, which, among other things, modifies the state’s procedures for property inspections during the redemption periods of foreclosure sales. The bill requires a purchaser of foreclosed property to issue a notice before conducting an interior inspection of the property during the redemption period. It allows a purchaser to conduct exterior inspections during the redemption period and to request information on the condition of the interior of any structures on the property. If the mortgagor refuses to provide the requested information, the purchaser may schedule an interior inspection. The bill also, among other things, requires a purchaser to notify the mortgagor that the purchaser intends to commence summary proceedings if damage to, or a condition on, the property is not repaired or corrected in seven days, and prohibits a purchaser from commencing such summary proceedings if the damage or condition is repaired, or the mortgagor and purchaser agree on a procedure and timeline to repair the damage or condition. The changes take effect June 19, 2014.

 

Topics:  Foreclosure, Mortgages, Redemption Agreement

Published In: Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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