Community Associations Institute Seminar

November 5, 2009

I.   Introduction

II.  What is Happening to Units?

            A.  Short Sales

            B.  Deeds in Lieu of Foreclosure

            C.  Mortgage foreclosure

            D.  Surrender

            E.  “Purgatory”

III.  Collection Policies

            A.  Create/Modify

            B.  Be aggressive

            C.  Increase late fees?

IV.  Foreclosure by Advertisement

            A.  Procedure

                        1.  Statutory Lien under MCA

                                    a.  Priority

                        2.  Notice of Lien

                                    a.  Record with Register of Deeds

                                    b.  Mail First Class to last known address

                                    c.  10 days before commencement of foreclosure

                        3.  Subdivisions

                                    a.  Declarations control

                                    b.  Priority

                                    c.  Legal?

                        4.  Title Commitment

                                    a.  Market considerations

                                    b.  Protection of Lien

                        5.  Scheduling Sale

                                    a.  2009 Amendments to Michigan Foreclosure Statutes

                                                i.  Effective July 2009

                                                ii.  Do Amendments apply to us?

                                    b.  Publication

                                                i.  4 consecutive weeks

                                    c.  Posting of Premises

                                                i. 15 days within first publication

                        6.  Sale

                                    a.  Bid

                                    b.  Auction

                                    c.  Overbid

                                    d.  Sheriff’s Deed

            B.  Redemption Period

                        1.  6 months

                        2.  Abandonment

            C.  Expiration of Redemption Period

                        1.  Title to unit

                                    a.  Property taxes

                        2.  Eviction of co-owner

                                    a.  Complaint

                                    b.  Hearing

                                    c.  Judgment 

                        3.  Sale or lease of unit

            D.  Special Considerations

                        1.  Bank owned units

                        2.  Deceased co-owner

                        3.  Removal

V.  Judicial Foreclosure

            A.  Combination action

                        1.  Foreclosure and money damages

                        2.  Distinct from District Court action

            B.  Notice of Lien

            C.  Circuit Court

                        1.  Complaint

                        2.  Service

                        3.  Judgment

            D.  Subdivisions

                        1.  Declarations control

            E.  Procedure after Judgment

                        1.  Collection from co-owner

                        2.  Foreclosure

                                    a.  6 months from Complaint

                                    b.  6 weeks publication

                                    c.  Posting of sale 

                                    d.  Sale

                                    e.  Order confirming sale

            F.  Appointment of Receiver

VI.  Collection of Judgment

            A.  Information for Defendant

                        1.  Creditor’s Examination

                        2.  Subpoena

            B.  Garnishment

                        1.  Nonperiodic

                        2.  Periodic

                        3.  State income tax refund

            C.  Request and Order to Seize Property

            D.  Judgment Lien

VII.  Special Situations

            A.  Small Claims

                        1.  Jurisdiction

                        2.  Service

                        3.  Hearing

                        4.  Collection

            B.  Tenants

                        1.  Notice to tenant

                        2.  Demand for Nonpayment

                        3.  Eviction

            C.  Estates

                        1.  Proof of Claim

Jeffrey L. Vollmer

Wegner and Associates, P.C.

23201 Jefferson Ave.

St. Clair Shores, MI 48080

(586) 773-1800; (586) 773-1805 (fax)

Website: www.wegnerlaw.com

E-Mail: j.vollmer@wegnerlaw.com