SB298,8,1110 (c) A notice of cancellation given by the foreclosed homeowner need not take the
11particular form provided under sub. (5) (b).
SB298,8,1512 (d) Within 10 days following receipt of a notice of cancellation given in
13accordance with this subsection, the foreclosure purchaser shall return without
14condition any original contract and any other documents signed by the foreclosed
15homeowner.
SB298,8,22 16(5) Notice of cancellation. (a) 1. The contract must contain conspicuously
17and in immediate proximity to the space reserved for the foreclosed homeowner's
18signature, in not less than 14-point boldface type if the contract is printed or in
19capital letters if the contract is typed, the following statement: "You may cancel this
20contract for the sale of your house without any penalty or obligation at any time
21before .... (date and time of day). See the attached notice of cancellation form for an
22explanation of this right."
SB298,8,2423 2. The foreclosure purchaser shall accurately enter the date and time of day on
24which the cancellation right ends.
SB298,9,7
1(b) The contract must be accompanied by a completed form in duplicate,
2captioned "Notice of cancellation" in 12-point boldface type if the contract is
3printed or in capital letters if the contract is typed, followed by a space in which the
4foreclosure purchaser shall enter the date on which the foreclosed homeowner
5executes the contract. This form must be attached to the contract, must be easily
6detachable, and must contain, in not less than 10-point type if the contract is printed
7or in capital letters if the contract is typed, the following statement:
SB298,9,88 NOTICE OF CANCELLATION
SB298,9,99 (Enter date contract signed)
SB298,9,1110 1. You may cancel this contract for the sale of your house, without any penalty
11or obligation, at any time before .... (date and time of day).
SB298,9,1612 2. To cancel this transaction, you may mail or otherwise deliver a signed and
13dated copy of this notice of cancellation, or you may e-mail a notice of cancellation,
14to .... (name of purchaser) at .... (street or physical address of purchaser's place of
15business), or .... (e-mail address of purchaser's place of business) NOT LATER THAN
16.... (date and time of day).
SB298,9,1717 3. I hereby cancel this transaction.
SB298,9,1818 (Date) ....
SB298,9,1919 (Seller's signature) ....
SB298,9,2220 (c) The foreclosure purchaser shall provide the foreclosed homeowner with a
21copy of the contract and the attached notice of cancellation form at the time the
22contract is executed by all parties.
SB298,9,2423 (d) The 5-day period under sub. (4) (a) during which the foreclosed homeowner
24may cancel the contract does not begin to run until all parties to the contract have

1executed the contract and the foreclosure purchaser has complied with this
2subsection.
SB298,10,8 3(6) Waiver. Any waiver of any of provisions of this section is void and
4unenforceable as contrary to public policy, except that a foreclosed homeowner may
5waive the 5-day right to cancel under sub. (4) (a) if the property is subject to a
6foreclosure sale within the 5 business days and the foreclosed homeowner agrees to
7waive his or her right to cancel in a handwritten statement signed by all parties
8holding title to the foreclosed property.
SB298,10,12 9(7) Liability. Any provision in a contract entered into on or after the effective
10date of this subsection .... [revisor inserts date], that attempts or purports to require
11arbitration of any dispute arising under this section is void at the option of the
12foreclosed homeowner.
SB298,10,15 13(8) General prohibitions and requirements. (a) A foreclosure purchaser may
14not enter into, or attempt to enter into, a foreclosure reconveyance with a foreclosed
15homeowner unless all of the following are satisfied:
SB298,11,316 1. The foreclosure purchaser verifies and can demonstrate that the foreclosed
17homeowner has a reasonable ability to pay for the subsequent conveyance of an
18interest back to the foreclosed homeowner. In the case of a lease with an option to
19purchase, payment ability also includes the reasonable ability to make the lease
20payments and purchase the property within the term of the option to purchase.
21There is a rebuttable presumption that a foreclosed homeowner is reasonably able
22to pay for the subsequent conveyance if the foreclosed homeowner's payments for
23primary housing expenses and regular principal and interest payments on other
24personal debt, on a monthly basis, do not exceed 60 percent of the foreclosed
25homeowner's monthly gross income. There is a rebuttable presumption that the

1foreclosure purchaser has not verified reasonable payment ability if the foreclosure
2purchaser has not obtained documents other than a statement by the foreclosed
3homeowner of assets, liabilities, and income.
SB298,11,64 2. The foreclosure purchaser and the foreclosed homeowner complete a closing
5for any foreclosure reconveyance in which the foreclosure purchaser obtains a deed
6or mortgage from a foreclosed homeowner.
SB298,11,107 3. The foreclosure purchaser obtains the written consent of the foreclosed
8homeowner to a grant by the foreclosure purchaser of any interest in the property
9during such times as the foreclosed homeowner maintains any interest in the
10property.
SB298,11,1711 4. The foreclosure purchaser complies with the requirements for disclosure,
12loan terms, and conduct under the federal Home Ownership Equity Protection Act,
1315 USC 1639, or its implementing regulations, 12 CFR 226.31, 226.32, and 226.34,
14for any foreclosure reconveyance in which the foreclosed homeowner obtains a
15vendee's interest in a land contract, regardless of whether the terms of the land
16contract meet the annual percentage rate or points and fees requirements for a
17covered loan under 12 CFR 226.32 (a) and (b).
SB298,11,1818 (b) A foreclosure purchaser shall do either of the following:
SB298,11,2019 1. Ensure that title to the subject dwelling has been reconveyed to the
20foreclosed homeowner.
SB298,12,521 2. Make a payment to the foreclosed homeowner such that the foreclosed
22homeowner has received consideration in an amount of at least 82 percent of the fair
23market value of the property within 150 days after either the eviction of, or voluntary
24relinquishment of possession of the dwelling by, the foreclosed homeowner. The
25foreclosure purchaser shall make a detailed accounting of the basis for the payment

1amount, or a detailed accounting of the reasons for failure to make a payment,
2including providing written documentation of expenses, within this 150-day period.
3The accounting shall be on a form prescribed by the attorney general, in consultation
4with the secretary of agriculture, trade and consumer protection. For purposes of
5this subdivision, all of the following apply:
SB298,12,86 a. There is a rebuttable presumption that an appraisal by a person licensed or
7certified by an agency of the federal government or this state to appraise real estate
8constitutes the fair market value of the property.
SB298,13,29 b. The time for determining the fair market value amount shall be specified in
10the foreclosure reconveyance contract as either at the time of the execution of the
11foreclosure reconveyance contract or at resale. If the contract states that the fair
12market value shall be determined at the time of resale, the fair market value shall
13be the resale price if it is sold within 120 days after the eviction of, or voluntary
14relinquishment of the property by, the foreclosed homeowner. If the contract states
15that the fair market value shall be determined at the time of resale, and the resale
16is not completed within 120 days after the eviction of, or voluntary relinquishment
17of the property by, the foreclosed homeowner, the fair market value shall be
18determined by an appraisal conducted during this 120-day period and payment, if
19required, shall be made to the foreclosed homeowner, but the fair market value shall
20be recalculated as the resale price on resale and an additional payment amount, if
21appropriate based on the resale price, shall be made to the foreclosed homeowner
22within 15 days after resale, and a detailed accounting of the basis for the payment
23amount, or a detailed accounting of the reasons for failure to make additional
24payment, shall be made within 15 days after resale, including providing written
25documentation of expenses. The accounting shall be on a form prescribed by the

1attorney general, in consultation with the secretary of agriculture, trade and
2consumer protection.
SB298,13,153 c. "Consideration" means any payment or thing of value provided to the
4foreclosed homeowner, including unpaid rent or land contract payments owed by the
5foreclosed homeowner prior to the date of eviction or voluntary relinquishment of the
6property, reasonable costs paid to 3rd parties necessary to complete the foreclosure
7reconveyance transaction, payment of money to satisfy a debt or legal obligation of
8the foreclosed homeowner, the reasonable cost of repairs for damage to the dwelling
9caused by the foreclosed homeowner, or a penalty imposed by a court for the filing
10of a frivolous claim in an eviction action under sub. (9). "Consideration" does not
11include amounts imputed as a down payment or fee to the foreclosure purchaser, or
12a person acting in participation with the foreclosure purchaser, incident to a land
13contract, lease, or option to purchase entered into as part of the foreclosure
14reconveyance, except for reasonable costs paid to 3rd parties necessary to complete
15the foreclosure reconveyance.
SB298,13,1816 (c) A foreclosure purchaser may not enter into repurchase or lease terms as part
17of the subsequent conveyance that are unfair or commercially unreasonable, or
18engage in any other unfair conduct.
SB298,13,2019 (d) A foreclosure purchaser may not represent, directly or indirectly, any of the
20following:
SB298,13,2321 1. That the foreclosure purchaser is acting as an advisor or a consultant, or in
22any other manner represent that the foreclosure purchaser is acting on behalf of the
23foreclosed homeowner.
SB298,14,3
12. That the foreclosure purchaser has certification or licensure that the
2foreclosure purchaser does not have, or that the foreclosure purchaser is not a
3member of a licensed profession if that is untrue.
SB298,14,54 3. That the foreclosure purchaser is assisting the foreclosed homeowner to save
5the house, or a substantially similar phrase.
SB298,14,86 4. That the foreclosure purchaser is assisting the foreclosed homeowner in
7preventing a completed foreclosure if the result of the transaction is that the
8foreclosed homeowner will not complete a redemption of the property.
SB298,14,159 (e) A foreclosure purchaser may not make any other statements, directly or by
10implication, or engage in any other conduct that is false, deceptive, or misleading,
11or that has the likelihood to cause confusion or misunderstanding, including
12statements regarding the value of the residence in foreclosure, the amount of
13proceeds the foreclosed homeowner will receive after a foreclosure sale, any contract
14term, or the foreclosed homeowner's rights or obligations incident to or arising out
15of the foreclosure reconveyance.
SB298,14,1816 (f) Until the time during which the foreclosed homeowner may cancel the
17transaction has fully elapsed, a foreclosure purchaser may not do any of the
18following:
SB298,14,2119 1. Accept from the foreclosed homeowner an execution of, or induce the
20foreclosed homeowner to execute, any instrument of conveyance of any interest in the
21residence in foreclosure.
SB298,14,2322 2. Record or file with the register of deeds any document, including any
23instrument of conveyance, signed by the foreclosed homeowner.
SB298,15,624 3. Transfer or encumber or purport to transfer or encumber any interest in the
25residence in foreclosure to any 3rd party, provided no grant of any interest or

1encumbrance is defeated or affected as against a bona fide purchaser or
2encumbrance for value and without notice of a violation of this subdivision.
3Knowledge on the part of any such person or entity that the property was residential
4real property in foreclosure does not constitute notice of a violation of this
5subdivision. This subdivision does not abrogate any duty of inquiry that exists as to
6rights or interests of persons in possession of the residence in foreclosure.
SB298,15,77 4. Pay the foreclosed homeowner any consideration.
SB298,15,11 8(9) Stay of proceedings in eviction actions. (a) A court hearing an eviction
9action against a foreclosed homeowner shall stay the proceedings, without the
10imposition of a bond, if a defendant makes a prima facie showing of all of the
11following:
SB298,15,1212 1. That any of the following applies to the defendant:
SB298,15,1413 a. The defendant has commenced an action concerning a foreclosure
14reconveyance with respect to the property that is the subject of the eviction action.
SB298,15,1715 b. The defendant asserts, in connection with a foreclosure reconveyance, any
16violation of this section or a claim or affirmative defense of fraud, false pretense, false
17promise, misrepresentation, misleading statement, or deceptive practice.
SB298,15,1818 2. That the defendant owned the foreclosed residence.
SB298,15,2419 3. That the defendant conveyed title to the foreclosed residence to a 3rd party
20upon a promise that the defendant would be allowed to occupy the foreclosed
21residence or other real property in which the foreclosure purchaser or a person acting
22in participation with the foreclosure purchaser has an interest and that the
23foreclosed residence or other real property would be the subject of a foreclosure
24reconveyance.
SB298,16,4
14. That since the conveyance to the 3rd party, the defendant has continuously
2occupied the foreclosed residence or other real property in which the foreclosure
3purchaser or a person acting in participation with the foreclosure purchaser has an
4interest.
SB298,16,85 (b) For purposes of par. (a), notarized affidavits are acceptable means of proof
6for meeting the defendant's burden of proof. A defendant may request, and upon a
7showing of good cause the court may grant, up to an additional 2 weeks to produce
8evidence to make the prima facie showing required under par. (a).
SB298,16,159 (c) The stay under this subsection shall remain in effect for 90 days if the
10defendant has not yet commenced and does not commence, within 90 days from the
11issuance of the stay, an action in connection with a foreclosure reconveyance
12transaction. If the defendant has commenced, or commences within 90 days from the
13issuance of the stay, an action in connection with a foreclosure reconveyance
14transaction, the stay shall remain in effect until the court hearing the action related
15to the foreclosure reconveyance renders a final decision in the matter.
SB298,16,16 16(10) Enforcement. (a) A violation of this section shall be considered a fraud.
SB298,16,1817 (b) A foreclosed homeowner against whom a violation of this section is
18committed may bring an action for damages.
SB298,16,2019 (c) A court may order punitive damages under s. 895.043 for a violation of this
20section.
SB298,16,2421 (d) 1. A foreclosure purchaser who violates this section by engaging in any
22practice that would operate as a fraud or deceit upon a foreclosed homeowner may
23be fined not more than $50,000 or imprisoned for not more than one year in the
24county jail or both.
SB298,17,3
12. In the absence of additional misconduct, a failure of the parties to complete
2a foreclosure reconveyance transaction shall not subject a foreclosure purchaser to
3the criminal penalties under subd. 1.
SB298, s. 5 4Section 5. 846.45 of the statutes is created to read:
SB298,17,6 5846.45 Regulation of foreclosure consultants. (1) Definitions. In this
6section, unless the context requires otherwise:
SB298,17,87 (a) "Contract" means an agreement, or any term in an agreement, between a
8foreclosure consultant and a foreclosed homeowner for the rendition of any service.
SB298,17,99 (b) "Foreclosed homeowner" has the meaning given in s. 846.40 (1) (b).
SB298,17,1410 (c) 1. Except as provided in subd. 2., "foreclosure consultant" means a person
11who, directly or indirectly, makes a solicitation, representation, or offer to a
12foreclosed homeowner to perform for compensation, or who for compensation
13performs, any service that the person in any manner represents will in any manner
14do any of the following:
SB298,17,1515 a. Stop or postpone the foreclosure sale.
SB298,17,1616 b. Obtain any forbearance from a beneficiary or mortgagee.
SB298,17,1917 c. Obtain a waiver of an acceleration clause contained in a promissory note or
18contract secured by a mortgage on the residence in foreclosure or contained in the
19mortgage.
SB298,17,2020 d. Assist the foreclosed homeowner to obtain a loan or advance of funds.
SB298,17,2221 e. Avoid or ameliorate the impairment of the foreclosed homeowner's credit
22resulting from the recording of a lis pendens or the conduct of a foreclosure sale.
SB298,17,2323 f. Save the residence in foreclosure from foreclosure.
SB298,17,2424 2. "Foreclosure consultant" does not include any of the following:
SB298,18,2
1a. A person licensed to practice law in this state when the person renders
2service in the course of his or her practice as an attorney at law.
SB298,18,63 b. A person licensed as a real estate broker or salesperson under ch. 452 when
4the person engages in acts for which licensure under that chapter is required, unless
5the person is engaged in offering services designed to, or purportedly designed to,
6enable the foreclosed homeowner to retain possession of the residence in foreclosure.
SB298,18,97 c. A person certified or licensed to practice as a certified public accountant
8under ch. 442 when the person is acting in any capacity for which the person is
9certified or licensed under that chapter.
SB298,18,1210 d. A person, or the person's authorized agent, acting under the express
11authority or written approval of the department of housing and urban development
12or other department or agency of the United States or this state to provide services.
SB298,18,1613 e. A person who holds or is owed an obligation secured by a lien on any residence
14in foreclosure when the person performs services in connection with this obligation
15or lien if the obligation or lien did not arise as the result of or as part of a proposed
16foreclosure reconveyance.
SB298,18,2317 f. A person or entity doing business under any law of this state, or of the United
18States, relating to a financial institution, as defined in s. 214.01 (1) (jn), to a lender
19licensed under s. 138.09, to an insurance company, or to a mortgagee that is a United
20States department of housing and urban development approved mortgagee; a
21subsidiary or affiliate of any of these persons or entities; or an agent or employee of
22any of these persons or entities while engaged in the business of these persons or
23entities.
SB298,18,2524 g. A person registered under s. 224.72 as a mortgage banker, loan originator,
25or mortgage broker, when acting under the authority of that registration.
SB298,19,3
1h. A judgment creditor of the foreclosed homeowner, to the extent that the
2judgment creditor's claim accrued prior to the recording of the lis pendens in the
3foreclosure action.
SB298,19,44 i. A foreclosure purchaser.
SB298,19,55 (d) "Foreclosure purchaser" has the meaning given in s. 846.40 (1) (c).
SB298,19,66 (e) "Foreclosure reconveyance" has the meaning given in s. 846.40 (1) (d).
SB298,19,87 (f) "Person" means any individual, partnership, corporation, limited liability
8company, association, or other group, however organized.
SB298,19,99 (g) "Residence in foreclosure" has the meaning given in s. 846.40 (1) (h).
SB298,19,1010 (h) "Service" includes any of the following:
SB298,19,1111 1. Debt, budget, or financial counseling of any type.
SB298,19,1312 2. Receiving money for the purpose of distributing it to creditors in payment
13or partial payment of any obligation secured by a lien on a residence in foreclosure.
SB298,19,1414 3. Contacting creditors on behalf of a foreclosed homeowner.
SB298,19,1615 4. Arranging or attempting to arrange for a delay or postponement of the time
16of sale of the residence in foreclosure.
SB298,19,1817 5. Advising the filing of any document, or assisting in any manner in the
18preparation of any document for filing, with a bankruptcy court.
SB298,19,2319 6. Giving any advice, explanation, or instruction to a foreclosed homeowner
20that in any manner relates to curing a default in or reinstating an obligation secured
21by a lien on the residence in foreclosure, the full satisfaction of that obligation, or the
22postponement or avoidance of a sale of a residence in foreclosure, under a power of
23sale contained in any mortgage.
SB298,20,2 24(2) Cancellation of foreclosure consultant contract. (a) In addition to any
25other right under law to rescind a contract, a foreclosed homeowner has the right to

1cancel a contract until midnight of the 3rd business day after the day on which the
2foreclosed homeowner signs a contract that complies with sub. (3).
SB298,20,53 (b) 1. Cancellation occurs when the foreclosed homeowner delivers, by any
4means, written notice of cancellation to the foreclosure consultant at the foreclosure
5consultant's address specified in the contract.
SB298,20,86 2. If notice of cancellation is given by mail, cancellation is effective when the
7notice is deposited in the U.S. mail, properly addressed with postage prepaid. If
8notice is given by e-mail, cancellation is effective upon transmission.
SB298,20,129 (c) Notice of cancellation given by the foreclosed homeowner need not take the
10particular form provided with the contract under sub. (3) (e). However expressed,
11notice is effective if it indicates the intention of the foreclosed homeowner not to be
12bound by the contract.
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