Michigan Amends Requirements for Foreclosure by Advertisement and Limitation of Actions

• February 23, 2018
• Ryan Peters

Michigan has amended 1961 PA 236 (the Act), section 600.3204, concerning foreclosure of a mortgage by advertisement, and section 600.5807, concerning limitation of actions. The amended Act is effective May 7, 2018.

Section 3204(1)(b) of the Act, as amended, now states that, “For purposes of this subdivision, an action or proceeding for the appointment of a receiver is not an action or proceeding to recover a debt.”

Additionally, section 5807 of the Act has been amended with updated periods of limitations, as follows:

• The period of limitations on an action charging a surety on a bond of a personal representative or guardian is 4 years after the discharge of the personal representative or guardian.
• Except as otherwise provided in this section or another statute of this state, the period of limitations is 10 years for an action founded on a bond of a public officer.
• The period of limitations on an action founded on a bond executed under sections 80 and 81 of 1846 RS 16, MCL 41.80 and 41.81, is 2 years after the expiration of the year for which the constable was elected.
• The period of limitations is 10 years for an action founded on a covenant in a deed or mortgage of real estate.
• Except as otherwise provided in another statute of this state, the period of limitations is 2 years for an action charging a surety for costs.
• The period of limitations is 2 years for an action brought on a bond or recognizance given on appeal from a court in this state.
• The period of limitations is 10 years for an action on a bond, note, or other like instrument that is the direct or indirect obligation of, or was issued by although not the obligation of, this state or a county, city, village, township, school district, special assessment district, or other public or quasi-public corporation in this state.
• The period of limitations is 6 years for an action to recover damages or money due for breach of contract that is not described in subsections (2) to (8).

For the full text of Michigan House Bill No. 4470, please refer to:

http://www.legislature.mi.gov/documents/2017-2018/publicact/pdf/2018-PA-0015.pdf

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