Sowell-Law PLLC

In Batth Investments, LLC v Miciura, an unpublished Michigan Court of Appeals opinion, a condominium association foreclosed its lien for unpaid condominium assessments in accordance with Michigan’s foreclosure by advertisement statute. A third party purchased at the sale. The third party commenced summary proceedings to shorten the redemption period and obtained a default judgment. The co-owner filed a motion to set aside the default judgment but, two days before the original six month redemption period expired, quitclaimed her interest to the Plaintiff, who attempted to redeem. The co-owner’s motion to set aside the default judgment later expired.

The plaintiff sued the foreclosure sale purchaser seeking to quiet title because the plaintiff tendered funds within six months of the date of the sale. The purchaser defended on the basis that the default judgment shortened the redemption period and the quiet title action was an impermissible attack on that judgment. The court granted plaintiff judgment and the purchaser appealed.

The Michigan Court of Appeals reversed and remanded, holding, again, that the reference in the MI Condominium Act to foreclosure of condominium liens “in the same manner” as mortgages incorporated by reference all of the provisions of the foreclosure by advertisement statute, including MCL 600.3238, which allows shortening of a redemption period under certain circumstances. Because the redemption period was shortened by the default judgment, and because that judgment was never set aside, Plaintiff’s attempt to quiet title was an impermissible attack on that judgment.

This is the second time that the Michigan Court of Appeals has held that the MI Condominium Act incorporates all of the provisions of the foreclosure by advertisement statute; the first time was discussed in this blog entry.