2017 WISCONSIN ACT 208
An Act to repeal 846.16 (2m) (intro.) (except 846.16 (2m) (title)); to renumber 846.165 (1); to renumber and amend 846.16 (1) (b), 846.16 (1) (c), 846.16 (3m) (a) (intro.), 1. and 2., 846.16 (3m) (b) and 846.165 (2); to amend 846.10 (2) (a) 1., 846.10 (2) (a) 2. a., 846.10 (2) (a) 2. b., 846.101 (2) (b), 846.101 (2) (c) 1., 846.101 (2) (c) 2., 846.102 (3) (a) 1., 846.103 (1), 846.103 (2), 846.16 (title), 846.16 (1) (title), 846.16 (1) (a), 846.16 (2m) (b) 2. a., 846.16 (4) (title), 846.16 (4) (a), 846.16 (4) (b) and 846.16 (4) (c); and
to create 846.16 (1) (bm), 846.16 (1g) (title), 846.16 (1g) (a) (title), 846.16 (1g) (b), 846.16 (1r) (title), 846.16 (1r) (b) (title), 846.16 (1r) (c), 846.16 (2m) (a) (title), 846.16 (2m) (am), 846.16 (2m) (b) (title), 846.16 (2m) (b) 3. and 846.16 (2m) (c) (title) of the statutes;
relating to: authorizing counties to conduct foreclosure sales using an Internet-based auction.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
846.10 (2) (a) 1. If the mortgage was executed before April 27, 2016, upon the expiration of 12 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and
s. 846.16 (1) and may be given within the 12-month period, except that the first printing of the notice shall not be made less than 10 months after the date when the judgment is entered, and except that the sale of a farm shall not be made or advertised until the expiration of one year from the date when the judgment is entered.
846.10 (2) (a) 2. a. Except as provided in subd. 2. b., upon the expiration of 6 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 6-month period, except that the first printing of the notice shall not be made less than 4 months after the date when the judgment is entered, and except that the sale of a farm shall not be made or advertised until the expiration of 6 months from the date when the judgment is entered.
846.10 (2) (a) 2. b. Upon motion of the mortgagor before judgment is entered, if the court finds that the mortgagor is attempting in good faith to sell the mortgaged premises and has entered into a listing agreement with a real estate broker licensed under ch. 452 to sell the mortgaged premises, upon the expiration of 8 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 8-month period, except that the first printing of the notice shall not be made less than 6 months after the date when the judgment is entered, and except that the sale of a farm shall not be made or advertised until the expiration of 8 months from the date when the judgment is entered.
846.101 (2) (b) If the mortgage was executed before April 27, 2016, the sale of the mortgaged premises shall be made upon the expiration of 6 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and
s. 846.16 (1) and may be given within the 6-month period, except that the first printing of the notice shall not be made less than 4 months after the date when the judgment is entered.
846.101 (2) (c) 1. Except as provided in subd. 2., upon the expiration of 3 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 3-month period, except that the first printing of the notice shall not be made less than one month after the date when the judgment is entered.
846.101 (2) (c) 2. Upon motion of the mortgagor before judgment is entered, if the court finds that the mortgagor is attempting in good faith to sell the mortgaged premises and has entered into a listing agreement with a real estate broker licensed under ch. 452 to sell the mortgaged premises, upon the expiration of 5 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 5-month period, except that the first printing of the notice shall not be made less than 3 months after the date when the judgment is entered.
846.102 (3) (a) 1. Hold a sale of the mortgaged premises and have the sale confirmed under s. 846.165 846.16 (2m). Any sale of the mortgaged premises may be held at any time after the expiration of 5 weeks from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given at any time within the 12-month period.
846.103 (1) No foreclosure sale involving real property other than a one-family to 4-family residence that is owner-occupied at the commencement of the foreclosure action, a farm, a church, or a tax-exempt nonprofit charitable organization may be held until the expiration of 6 months from the date when the judgment is entered except a sale under sub. (2). Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 6-month period, except that the first printing of the notice shall not be made less than 4 months after the date when the judgment is entered.
846.103 (2) If the mortgagor of real property other than a one-family to 4-family residence that is owner-occupied at the commencement of the foreclosure action, a farm, a church, or a tax-exempt nonprofit charitable organization has agreed in writing at the time of the execution of the mortgage to the provisions of this section, the plaintiff in a foreclosure action of a mortgage, which mortgage is recorded subsequent to May 12, 1978, may elect by express allegation in the complaint to waive judgment for any deficiency that may remain due to the plaintiff after sale of the mortgaged premises against every party who is personally liable for the debt secured by the mortgage, and to consent that the mortgagor, unless he or she abandons the property, may remain in possession of the mortgaged premises and be entitled to all rents, issues, and profits therefrom to the date of confirmation of the sale by the court. When the plaintiff so elects, judgment shall be entered as provided in this chapter, except that no judgment for deficiency may be ordered nor separately rendered against any party who is personally liable for the debt secured by the mortgage and the sale of the mortgaged premises shall be made upon the expiration of 3 months from the date when the judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and s. 846.16 (1) and may be given within the 3-month period, except that the first printing of the notice shall not be made less than one month after the date when the judgment is entered.
846.16 (title) Notice of sale;
sale; confirmation; transfer.
846.16 (1) (title) Notice of sale
and sale.
846.16 (1) (a) Notice of in-person sale. The Except as provided in par. (bm), the sheriff or referee who makes sale of mortgaged premises, under a judgment therefor, shall give notice of the time and place of sale in the manner provided by law for the sale of real estate upon execution as provided under s. 815.31 or in such other manner as the court shall in the judgment direct. The sheriff or referee shall include in the notice of sale the street address, if any, of the real estate to be sold and the sum of the judgment. If
(cm) Notice to department of veterans affairs. In addition to providing notice of sale under par. (a) or (bm), if the department of veterans affairs is also a party in the foreclosure action, the judgment shall direct that notice of sale be given by registered mail, return receipt requested, to the department at Madison, Wisconsin, at least 3 weeks prior to the date of sale, but such requirement does not affect any other provision as to giving notice of sale. Upon the.
(1r) (a) Execution of deed. After a sale of the mortgaged premises under sub. (1g) and upon compliance with its the terms of the sale, the sheriff or referee shall make and execute to the purchaser, the purchaser's assigns, or personal representatives a deed of the mortgaged premises sold that includes sets forth each parcel of land sold to the purchaser and the purchase price paid for each parcel.
208,13
Section
13. 846.16 (1) (b) of the statutes, as affected by
2017 Wisconsin Act 104, is renumbered 846.16 (1r) (b), and 846.16 (1r) (b) (intro.) and 2. a., as renumbered, are amended to read:
846.16 (1r) (b) (intro.) No later than 10 days after the a sale of the mortgaged premises
under sub. (1g), the sheriff or referee shall do all of the following:
2. a. The deed to the mortgaged premises executed under par. (a).
208,14
Section
14. 846.16 (1) (bm) of the statutes is created to read:
846.16 (1) (bm) Notice of Internet-based sale. If a sale is conducted under sub. (1g) (b), the sheriff or referee who makes sale of mortgaged premises shall give notice of the time and place of sale as provided under par. (a), except as follows:
1. Section 815.31 (1) does not apply to the sale. The sheriff or referee shall publicly advertise the time and place of holding the sale by posting, at least 3 weeks prior to the date of the sale, a written notice describing the mortgaged premises to be sold with reasonable certainty in one public place in the city, village, or town where the mortgaged premises are located and, if the county where the mortgaged premises are located maintains an Internet site, on that Internet site. If the city, village, or town where the mortgaged premises are located maintains an Internet site, the city, village, or town may post the notice on that Internet site.
2. The notice also shall include all of the following information:
a. A statement that the sale will be conducted using an Internet-based auction.
b. The address of the Internet site where the Internet-based auction will be conducted.
c. The time period during which bids for the mortgaged premises may be submitted.
d. Instructions on how the general public may observe the Internet-based auction and on how a person may participate in the auction, including any prerequisites to participation that may apply, or the address of an Internet site where those instructions are posted.
e. A description of the terms of sale that apply to the Internet-based auction, including a description of any lien or other encumbrance on the mortgaged premises that has priority over the mortgage that is the subject of the foreclosure action.
208,15
Section
15. 846.16 (1) (c) of the statutes, as affected by
2017 Wisconsin Act 104, is renumbered 846.16 (1g) (a), and 846.16 (1g) (a) 1. and 2., as renumbered, are amended to read:
846.16 (1g) (a) 1. Except as provided under subd. 2. and this subdivision, the sheriff or referee may not accept less than $100 as a deposit or down payment from the purchaser at a sale of mortgaged premises. The sheriff or referee shall deliver the amount of the deposit or down payment to the clerk of court as provided in par. (b) sub. (1r) (b) 2. b., and the purchaser shall pay the balance of the sale purchase price to the clerk of court upon the confirmation of the sale as provided in sub. (2m) (b). If the highest bid is less than $100, the purchaser shall give the bid amount as a deposit or down payment, and the sheriff or referee shall deliver the entire amount to the clerk of court.
2. If the judgment creditor is the purchaser at the
a sale of the mortgaged premises, the judgment creditor may give the judgment creditor's receipt to the sheriff or referee for any sum not exceeding the sum due to the judgment creditor's judgment creditor. The judgment creditor's receipt is considered a down payment. If the judgment creditor is the purchaser and the sum due to the judgment creditor is less than the purchase price, the judgment creditor shall pay the difference to the sheriff or referee at the time of sale.
208,16
Section
16. 846.16 (1g) (title) of the statutes is created to read:
846.16 (1g) (title) Sale of mortgaged premises.
208,17
Section
17. 846.16 (1g) (a) (title) of the statutes is created to read:
846.16 (1g) (a) (title) Payment of purchase price and costs of sale; deposit or down payment.
208,18
Section
18. 846.16 (1g) (b) of the statutes is created to read:
846.16 (1g) (b) Internet-based sale. 1. A county may enact an ordinance that requires the sheriff or referee to conduct, or to engage an auctioneer registered under ch. 480 to conduct, sales of mortgaged premises in the county using an Internet-based auction. If county enacts such an ordinance, all sales of mortgaged premises in the county shall be conducted using Internet-based auctions.
2. If a sale is conducted using an Internet-based auction, the person conducting the sale may accept payment of any amounts under par. (a) by credit card, debit card, or other electronic payment method and may charge a surcharge to the payer to recover charges associated with accepting the electronic payment.
3. If a sale is conducted using an Internet-based auction, the person conducting the sale shall, on the Internet site on which the Internet-based auction is conducted, provide any potential bidder with a conspicuous statement identifying any lien or other encumbrance described in the notice under sub. (1) (bm) 2. e.
208,19
Section
19. 846.16 (1r) (title) of the statutes is created to read:
846.16 (1r) (title) Procedures after sale.
208,20
Section
20. 846.16 (1r) (b) (title) of the statutes is created to read:
846.16 (1r) (b) (title) Deductions from proceeds; transmittals to clerk of court.
208,21
Section
21. 846.16 (1r) (c) of the statutes is created to read:
846.16 (1r) (c) Deed held until confirmation. The clerk of court shall hold a deed delivered to the clerk of court under par. (b) 2. a. until confirmation of the sale under sub. (2m).
208,23
Section
23. 846.16 (2m) (a) (title) of the statutes is created to read:
846.16 (2m) (a) (title) Preparation of real estate transfer return.
208,24
Section
24. 846.16 (2m) (am) of the statutes is created to read:
846.16 (2m) (am) Payment of sale proceeds upon confirmation. Upon confirmation of a sale of mortgaged premises, the clerk of court shall pay to the parties entitled thereto, or to their attorneys, the proceeds of the sale.
208,25
Section
25. 846.16 (2m) (b) (title) of the statutes is created to read:
846.16 (2m) (b) (title) Payments by purchaser.
846.16 (2m) (b) 2. a. The deed to the mortgaged premises delivered under sub. (1) (1r) (b) 2. a.
208,27
Section
27. 846.16 (2m) (b) 3. of the statutes is created to read:
846.16 (2m) (b) 3. Any part of the purchase price remaining to be paid.
208,28
Section
28. 846.16 (2m) (c) (title) of the statutes is created to read:
846.16 (2m) (c) (title) Delivery of real estate transfer return receipt.
208,29
Section
29. 846.16 (3m) (a) (intro.), 1. and 2. of the statutes, as affected by
2017 Wisconsin Act 104, are renumbered 846.16 (3m) (intro.), (am) and (bm) and amended to read:
846.16 (3m) Transmittal to register of deeds. (intro.) Upon the court confirming the a sale of mortgaged premises and upon compliance by the purchaser with the terms of the sale and the payment of any balance of the sale price to be paid, unless otherwise ordered by the court, the clerk of court shall do one of the following to transmit the deed to the mortgaged premises received under sub. (1) (1r) (b) 2. a. to the register of deeds for recording:
(am) Deliver the deed to the mortgaged premises received under sub. (1) (1r) (b) 2. a., the receipt for submitting a transfer return under s. 77.22, the amount due under s. 59.43 (2) to record the deed and any other document required to record the deed, and the transfer fee, if any, to the register of deeds.
(bm) Notify the register of deeds that the deed to the mortgaged premises received under sub. (1) (1r) (b) 2. a., the receipt for submitting a transfer return under s. 77.22, the amount due under s. 59.43 (2) to record the deed and any other document required to record the deed, and the transfer fee, if any, are available in the clerk's office. If a register of deeds is notified under this subdivision paragraph, the register of deeds shall retrieve the documents and fees from the clerk of courts within a reasonable period of time.
208,30
Section
30. 846.16 (3m) (b) of the statutes, as created by
2017 Wisconsin Act 104, is renumbered 846.16 (2m) (as) and amended to read:
846.16 (2m) (as) Effect of deed upon confirmation. Upon Unless the deed is destroyed as provided in sub. (4) (a), upon confirmation of the a sale of mortgaged premises, the deed executed under sub. (1)
(1r) (a) shall vest in the purchaser, the purchaser's assigns, or personal representatives all the right, title, and interest of the mortgagor, the mortgagor's heirs, personal representatives, and assigns in and to the premises sold and shall be
is a bar to all claim, right of equity of redemption therein, of and against the parties to such the action, their heirs, and personal representatives, and against all persons claiming under them subsequent to the filing of the notice of the pendency of the action in which such judgment was rendered; and the purchaser, the purchaser's heirs, or assigns shall be let into the possession of the premises so sold on production of such the deed or a duly certified copy thereof of the deed, and the court may, if necessary, issue a writ of assistance to deliver such that possession.
846.16 (4) (title) No confirmation of sale; effect of failure to comply with confirmation requirements; resale.
846.16 (4) (a) If any of the requirements under sub. (2m) (a) and (b) are not satisfied and the purchaser is not the judgment creditor, the court shall order the purchaser to forfeit the amount of the purchaser's deposit or down payment delivered to the clerk of court under sub. (1r) (b) 2. b., and the clerk of court shall pay that amount shall be paid to the parties who that would be entitled to the proceeds of the sale as ordered by the court. The court shall also order that the mortgaged premises be resold. The clerk of court shall destroy the deed executed to the defaulting purchaser under sub. (1r) (a), and
it shall be that deed is of no effect.
846.16 (4) (b) If any of the requirements under sub. (2m) (b) and (c) are not satisfied and the purchaser is the judgment creditor, the court may order the purchaser to forfeit the greater of the purchaser's deposit or $500, and order the purchaser to comply with sub. (2m) (b) and (c) so that the mortgaged property may be sold to the purchaser.
846.16 (4) (c) If the court does not confirm
the a sale of the mortgaged premises for a reason other than a failure to satisfy a requirement under sub. (2m) (a), (b), or (c), the clerk of court shall return the deposit or down payment delivered to the clerk of court under sub. (1r) (b) 2. b. to the purchaser, and the court shall order the mortgaged premises to be resold. The clerk of court shall destroy the deed received under sub. (1) (1r) (b) 2. a., and it shall be that deed is of no effect.
208,35
Section
35. 846.165 (1) of the statutes is renumbered 846.165.
208,36
Section
36. 846.165 (2) of the statutes is renumbered 846.16 (2m) (ae) and amended to read:
846.16 (2m) (ae) Determination of fair value of mortgaged premises. In case the If mortgaged premises sell for less than the amount due and to become due on the mortgage debt and costs of sale, there shall be
is no presumption that such the mortgaged premises sold for their fair value, and no sale shall be confirmed and the court may not confirm the sale or render a judgment for deficiency rendered, until the court is satisfied that the fair value of the mortgaged premises sold has been credited on the mortgage debt, interest, and costs.
