The bill amends the Revised Judicature Act of 1961 by modifying sections 3240 and 3252 and adding a new section 3240a. It clarifies the conditions under which a purchaser's deed becomes void if the mortgagor or any person with a recorded interest redeems the property, specifying that the redemption amount must be included in an affidavit from the purchaser. The new section 3240a outlines the requirements for the assignment or transfer of the mortgagor's right of redemption, including notice requirements and penalties for non-compliance. It mandates that any assignment must include a signed and dated notice of redemption rights, informing the assignor of the implications of transferring these rights.

Additionally, the bill introduces a mandatory 7-day cooling-off period during which an assignee cannot present an assignment instrument to the assignor after the assignor has signed the notice of redemption rights. It also clarifies the process for handling surplus funds after a foreclosure sale, requiring written and verified claims against the surplus and mandating that the sale officer file a complaint in interpleader if a claim is made. The bill emphasizes that the mortgagor's right to surplus money is not transferable after the first publication of the foreclosure notice, except through succession, and it requires the state court administrative office to create a standardized form for interpleader complaints to ensure procedural compliance.

Statutes affected:
Substitute (H-2): 600.3240, 600.3252
Substitute (H-4): 600.3240, 600.3252
House Introduced Bill: 600.3240, 600.3252
As Passed by the House: 600.3240, 600.3252