LRB-3793/1
RPN:cjs:ph
2009 - 2010 LEGISLATURE
January 22, 2010 - Introduced by Representative Schneider. Referred to
Committee on Housing.
AB672,1,3
1An Act to renumber and amend 846.01 (1);
to amend 846.01 (2) and 846.102;
2and
to create 846.01 (1g) and 846.10 (5) of the statutes;
relating to:
3foreclosure and sale of residential property.
Analysis by the Legislative Reference Bureau
Under current law, if a mortgagee brings an action for foreclosure of a mortgage
on a residential property, the homeowner (mortgagor or borrower) is served with a
summons and complaint and the normal civil procedural rules of pleadings,
discovery of evidence, pretrial, and trial apply. If the court finds that the mortgagee
has the right to the foreclosure, the court issues a judgment for foreclosure of the
mortgage, which entitles the mortgagee to force a sale of the property after a
redemption period has ended.
This bill requires the plaintiff and the court to provide a written notice to the
residential property owner who is the defendant in an action for foreclosure. The bill
requires the notice to inform the residential property owner that he or she continues
to be the owner of the property, which includes the responsibility for the payment of
real estate taxes, until the property is sold under the foreclosure, the sale is
confirmed by the court, and the new owner records the deed with the register of
deeds. Under the bill, the plaintiff is required to include the notice with the summons
and complaint and the court is required to provide the notice at the time that the
court issues the judgment of foreclosure.
The bill prohibits the delay of a sheriff's sale of residential property beyond the
date originally scheduled for the sale unless the court authorizing the sale makes a
finding on the record that there is good cause for the delay. If a delay is permitted,
the bill requires the sheriff's sale to take place within 60 days after the original
postponed sale date.
Currently, if the court finds that a mortgaged property has been abandoned
after receiving evidence as to that fact, the court may enter judgment for foreclosure
and order the sale of the property within two months after the entry of the judgment.
This bill requires the court, before making a finding of abandonment, to receive
evidence from the defendant, if available, and the plaintiff, as to whether the
property is abandoned. The bill also requires the court, after finding that a property
has been abandoned and entering a judgment for foreclosure, to order that the sale
of the property take place between 45 days and 70 days after the judgment is entered.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB672, s. 1
1Section
1. 846.01 (1) of the statutes is renumbered 846.01 (1m) and amended
2to read:
AB672,2,163
846.01
(1m) Except as provided in sub. (2), in actions for the foreclosure of
4mortgages upon real estate, if the plaintiff recover, the court shall render judgment
5of foreclosure and sale, as provided in this chapter, of the mortgaged premises or so
6much of the premises as may be sufficient to pay the amount adjudged to be due upon
7the mortgage and obligation secured by the mortgage, with costs.
The plaintiff shall
8provide the defendant with a written notice together with the summons and
9complaint that is used to commence the action for foreclosure of a mortgage of
10residential property. The written notice shall inform the defendant that if the court
11issues a judgment of foreclosure, the defendant continues to be the owner of the
12residential property for all purposes, including the responsibility for the payment of
13real estate taxes, until the property is sold at a sheriff's sale or other sale, the sale
14is confirmed by the court, and the new owner records the deed with the register of
15deeds. If the plaintiff fails to include the written notice required under this
16subsection, the court shall dismiss the foreclosure action.
AB672, s. 2
1Section
2. 846.01 (1g) of the statutes is created to read:
AB672,3,52
846.01
(1g) In this section, "residential property" means real estate that
3includes, or that the owner intends to develop so that it includes, a one-family to
44-family dwelling, which may be a condominium unit, that the owner uses or intends
5to use as his or her principal place of residence.
AB672, s. 3
6Section
3. 846.01 (2) of the statutes is amended to read:
AB672,3,137
846.01
(2) A judgment of foreclosure and sale shall not be entered until 20 days
8after the lis pendens has been filed.
If the court issues a judgment of foreclosure on
9residential property, the court shall provide written notice to the defendant that he
10or she continues to be the owner of the residential property for all purposes, including
11the responsibility for the payment of real estate taxes, until the property is sold at
12a sheriff's sale or other sale, the sale is confirmed by the court, and the new owner
13records the deed with the register of deeds.
AB672, s. 4
14Section
4. 846.10 (5) of the statutes is created to read:
AB672,3,1915
846.10
(5) No sheriff's sale involving residential property, as defined in s.
16846.01 (1g), may be delayed beyond the date originally scheduled for the sale unless
17the court makes a finding on the record that there is good cause for the delay. If a
18sheriff's sale is delayed for good cause, the sale shall be rescheduled to a date that
19is within 60 days after the original postponed date of the sale.
AB672, s. 5
20Section
5. 846.102 of the statutes is amended to read:
AB672,4,8
21846.102 Abandoned premises. In an action for enforcement of a mortgage
22lien
if, the court
makes an affirmative shall make a finding upon proper evidence
23being submitted
that by the defendant, if available, and by the plaintiff, as to
24whether the mortgaged premises have been abandoned by the mortgagor and
25assigns
,. If the court makes an affirmative finding that the mortgaged premises have
1been abandoned, the court shall enter judgment
shall be entered as provided in s.
2846.10 except that the sale of
such the mortgaged premises shall be made
upon the
3expiration of 2 months from not earlier than 45 days after the date
when such
the 4judgment is entered
, but not later than 70 days after the judgment is entered. Notice
5of the time and place of sale shall be given under ss. 815.31 and 846.16
and may be
6given within such 2-month period. In this section "abandoned" means the
7relinquishment of possession or control of the premises whether or not the mortgagor
8or the mortgagor's assigns have relinquished equity and title.
