News + updates + recent press
On November 12, 2020, in an unpublished opinion in James Akouri and Karen Akouri vs. Comerica Bank, the State of Michigan Court of Appeals confirmed not only that the six-year statute of limitations to pursue a suit on a note begins running at the time of acceleration rather than default, but also that failure to pursue action on a note within six years did not bar foreclosure of the mortgage within 15 years. The decision stems from a 2005 home equity line of credit encumbering the mortgagors’ home with a maturity date in 2025. The mortgagors stopped making payments in 2006, but it was not until 2015 lender sent a letter to the mortgagors requiring immediate payment in full. The Mortgagors did not meet the demand. However, foreclosure by advertisement proceedings were not commenced until about four years later, in 2019.
The Michigan Supreme Court has amended its June 2020 Administrative Order No. 2020-17 that provided direction to state courts for resuming eviction actions. Prior to the pandemic, courts traditionally processed these types of cases in a “cattle-call” fashion, with numerous cases being called simultaneously and resulting in large number of individuals in crowded and enclosed spaces.
The Court noted in June that this method of processing eviction cases was inconsistent with safety protocol in place due to COVID-19 and would present a public health threat if removal of moratoriums on eviction filings resulted in a sudden increase in eviction filings once the court resumed full-capacity operations. Most notably, Order 2020-17 did three things:
The amendment extends compliance with Order 2020-17 through the end of 2020 in tandem with the CDC’s eviction moratorium and seeks to reduce “the possibility of further infection while ensuring that landlord/tenant cases are able to be filed and adjudicated efficiently.” Amendment to Administrative Order No. 2020-17.
The above information provided by PLG attorney, Ellen Fornash, licensed in OH, KY and MI.
Michigan House Bill 5611 proposes to modify the Marketable Title Act by altering the number of years an interest or claim can be preserved. “An interest, claim, or charge may be preserved and kept effective by filing for record within 5 years March 29, 2019[.]” This is an increase from the prior 2 year time limitation. This proposed bill passed the House on September 10, 2020, and would reset the effective date of the Marketable Record Title Act to March 29, 2024.
Senate Bill 1056 proposes to allow foreclosing governmental entities to cancel a foreclosure by recording in the county where the property is located a certificate of post-judgment redemption for specified reasons and for a limited amount of time. The interests extinguished by the judgment would be replaced with a right to make an equivalent claim to the proceeds from a subsequent sale. In order to qualify for such a cancellation, as basic requirements, the real property must have:
Senate Bill 1056 goes hand-in-hand with Senate Bill 676, which requires proceeds from a tax foreclosure sale above and beyond the minimum bid be returned to the owner of the property if they occupied it as their principal residence. Senate Bill 1056 is expected to have a positive fiscal impact on taxing entities by allowing the entity to forego the expense of a traditional foreclosure sale.
PLG BLOG DISCLAIMER
The information contained on this blog shall not constitute legal advice or a legal opinion. The existence of or review and/or use of this blog or any information hereon does not and is not intended to create an attorney-client relationship. Further, no information on this blog should be construed as investment advice. Independent legal and financial advice should be sought before using any information obtained from this blog. It is important to note that the cases are subject to change with future court decisions or other changes in the law. For the most up-to-date information, please contact Padgett Law Group (“PLG”). PLG shall have no liability whatsoever to any user of this blog or any information contained hereon, for any claim(s) related in any way to the use of this blog. Users hereby release and hold harmless PLG of and from any and all liability for any claim(s), whether based in contract or in tort, including, but not limited to, claims for lost profits or consequential, exemplary, incidental, indirect, special, or punitive damages arising from or related to their use of the information contained on this blog or their inability to use this blog. This Blog is provided on an "as is" basis without warranties of any kind, either express or implied, including, but not limited to, warranties of title or implied warranties of merchantability or fitness for a particular purpose.