REVISED JUDICATURE ACT OF 1961
Act 236 of 1961
600.3280 Foreclosure by advertisement; deficiency; defenses.
Sec. 3280.
When, in the foreclosure of a mortgage by advertisement, any sale of real property has been made after February 11, 1933, or shall be hereafter made by a mortgagee, trustee, or other person authorized to make the same pursuant to the power of sale contained therein, at which the mortgagee, payee or other holder of the obligation thereby secured has become or becomes the purchaser, or takes or has taken title thereto at such sale either directly or indirectly, and thereafter such mortgagee, payee or other holder of the secured obligation, as aforesaid, shall sue for and undertake to recover a deficiency judgment against the mortgagor, trustor or other maker of any such obligation, or any other person liable thereon, it shall be competent and lawful for the defendant against whom such deficiency judgment is sought to allege and show as matter of defense and set-off to the extent only of the amount of the plaintiff's claim, that the property sold was fairly worth the amount of the debt secured by it at the time and place of sale or that the amount bid was substantially less than its true value, and such showing shall constitute a defense to such action and shall defeat the deficiency judgment against him, either in whole or in part to such extent. This section shall not affect nor apply to the rights of other purchasers or of innocent third parties, nor shall it be held to affect or defeat the negotiability of any note, bond or other obligation secured by such mortgage, deed of trust or other instrument. Such proceedings, as aforesaid, shall in no way affect the title of the purchaser to the lands acquired by such purchase. This section shall not apply to foreclosure sales made pursuant to an order or decree of court nor to any judgment sought or rendered in any foreclosure suit nor to any chancery sale heretofore or hereafter made and confirmed.
History: 1961, Act 236, Eff. Jan. 1, 1963
Notes of Decisions
Talmer Bank & Trust v. Parikh, 304 Mich. App. 373 (Mich. Ct. App. 2014).
· cites it 16× “, addresses foreclosure by advertisement pursuant to power-of-sale clauses, and MCL 600.3280 is the only statute that directly pertains to deficiency actions.”
In re Taj Graphics Enters., LLC, 601 B.R. 451 (Bankr. E.D. Mich. 2019).
· cites it 9× “The Debtor argues that the Luna Pier loan must be deemed paid in full, or nearly so, based on Mich. Comp. Laws Ann. § 600.3280 . The Debtor argues that the Luna Pier property was worth substantially more than the $ 325,000 that Prime purchased the property for in the 2007…”
Nancy & Stjepan Sostaric v. Sally Marshall, 766 S.E.2d 396 (W. Va. 2014).
· cites it 4× “14, § 6324 (“fair market value” at time of sale); Mich. Comp. Laws Ann. § 600.3280 (“true value” at time of sale); Minn.”
Bank of Am. Na v. Fid. Nat'l Title Ins. Co., 316 Mich. App. 480 (Mich. Ct. App. 2016).
“If a mortgagee bids a lower amount, it may then pursue a deficiency judgment against the debtor, subject to the limitations set forth in the anti-deficiency statute [MCL 600.3280], However, a mortgagee can make a full credit bid—i.”
Gruskin v. Fisher, 273 N.W.2d 893 (Mich. 1979).
· cites it 2× “We note that mortgage foreclosure by advertisement is as expeditious as most summary proceedings, and not subject to judicial supervision unless the mortgagee seeks a deficiency judgment, in which event the adequacy of the bid price can be inquired into, MCL 600.3280; MSA…”
In re Kwiatkowski, 486 B.R. 409 (Bankr. E.D. Mich. 2013).
· cites it 3× “]” See Mich. Comp. Laws Ann. § 600.3280 . This is an affirmative defense, which the debtor must plead and prove.”
New Freedom Mortg. Corp. v. Globe Mortg. Corp., 761 N.W.2d 832 (Mich. Ct. App. 2008).
“3280, which addresses deficiencies, provides, in pertinent part, as follows: When, in the foreclosure of a mortgage by advertisement, any sale of real property has been made after February 11, 1933, or shall be hereafter made by a mortgagee, trustee, or other person authorized…”
Bank of Three Oaks v. Lakefront Props., 444 N.W.2d 217 (Mich. Ct. App. 1989).
· cites it 2× “3280: When, in the foreclosure of a mortgage by advertisement, any sale of real property has been made after February 11, 1933, or shall be hereafter made by a mortgagee, trustee, or other person authorized to make the same pursuant to the power of sale contained therein, at…”
Chabut v. Chabut, 239 N.W.2d 401 (Mich. Ct. App. 1976).
· cites it 4× “Plaintiffs further rely on MCLA 600.3280 and MSA 27A.3280 that provides mortgagors can show as a defense and set off *444 that the property sold was fairly worth the amount of the debt secured by it at the time and place of the sale or that the amount bid was substantially less…”
DAGS II, LLC v. Huntington Nat'l Bank, 865 F.3d 384 (6th Cir. 2017).
· cites it 3× “Under Michigan law, when a creditor forecloses *388 by advertisement, the borrower’s debt is reduced to the extent of the “true value” of the property, even if the actual foreclosure sale price was lower than that.”
Pulleyblank v. Cape, 446 N.W.2d 345 (Mich. Ct. App. 1989).
· cites it 2× “In arguing that a deficiency on the debt still existed after the sale of the Howell property, Pulleyblank relies on MCL 600.3280; MSA 27A.3280, which provides in pertinent part: When, in the foreclosure of a mortgage by advertisement, any sale of real property has been made…”
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