SB62,357,2119 b. The defendant asserts, in connection with a foreclosure reconveyance, any
20violation of this section or a claim or affirmative defense of fraud, false pretense, false
21promise, misrepresentation, misleading statement, or deceptive practice.
SB62,357,2222 2. That the defendant owned the foreclosed residence.
SB62,358,323 3. That the defendant conveyed title to the foreclosed residence to a 3rd party
24upon a promise that the defendant would be allowed to occupy the foreclosed
25residence or other real property in which the foreclosure purchaser or a person acting

1in participation with the foreclosure purchaser has an interest and that the
2foreclosed residence or other real property would be the subject of a foreclosure
3reconveyance.
SB62,358,74 4. That since the conveyance to the 3rd party, the defendant has continuously
5occupied the foreclosed residence or other real property in which the foreclosure
6purchaser or a person acting in participation with the foreclosure purchaser has an
7interest.
SB62,358,118 (b) For purposes of par. (a), notarized affidavits are acceptable means of proof
9for meeting the defendant's burden of proof. A defendant may request, and upon a
10showing of good cause the court may grant, up to an additional 2 weeks to produce
11evidence to make the prima facie showing required under par. (a).
SB62,358,1812 (c) The stay under this subsection shall remain in effect for 90 days if the
13defendant has not yet commenced and does not commence, within 90 days from the
14issuance of the stay, an action in connection with a foreclosure reconveyance
15transaction. If the defendant has commenced, or commences within 90 days from the
16issuance of the stay, an action in connection with a foreclosure reconveyance
17transaction, the stay shall remain in effect until the court hearing the action related
18to the foreclosure reconveyance renders a final decision in the matter.
SB62,358,19 19(10) Enforcement. (a) A violation of this section shall be considered a fraud.
SB62,358,2120 (b) A foreclosed homeowner against whom a violation of this section is
21committed may bring an action for damages.
SB62,358,2322 (c) A court may order punitive damages under s. 895.043 for a violation of this
23section.
SB62,359,224 (d) 1. A foreclosure purchaser who violates this section by engaging in any
25practice that would operate as a fraud or deceit upon a foreclosed homeowner may

1be fined not more than $50,000 or imprisoned for not more than one year in the
2county jail or both.
SB62,359,53 2. In the absence of additional misconduct, a failure of the parties to complete
4a foreclosure reconveyance transaction shall not subject a foreclosure purchaser to
5the criminal penalties under subd. 1.
SB62, s. 852 6Section 852. 846.45 of the statutes is created to read:
SB62,359,8 7846.45 Regulation of foreclosure consultants. (1) Definitions. In this
8section, unless the context requires otherwise:
SB62,359,109 (a) "Contract" means an agreement, or any term in an agreement, between a
10foreclosure consultant and a foreclosed homeowner for the rendition of any service.
SB62,359,1111 (b) "Foreclosed homeowner" has the meaning given in s. 846.40 (1) (b).
SB62,359,1612 (c) 1. Except as provided in subd. 2., "foreclosure consultant" means a person
13who, directly or indirectly, makes a solicitation, representation, or offer to a
14foreclosed homeowner to perform for compensation, or who for compensation
15performs, any service that the person in any manner represents will in any manner
16do any of the following:
SB62,359,1717 a. Stop or postpone the foreclosure sale.
SB62,359,1818 b. Obtain any forbearance from a beneficiary or mortgagee.
SB62,359,2119 c. Obtain a waiver of an acceleration clause contained in a promissory note or
20contract secured by a mortgage on the residence in foreclosure or contained in the
21mortgage.
SB62,359,2222 d. Assist the foreclosed homeowner to obtain a loan or advance of funds.
SB62,359,2423 e. Avoid or ameliorate the impairment of the foreclosed homeowner's credit
24resulting from the recording of a lis pendens or the conduct of a foreclosure sale.
SB62,359,2525 f. Save the residence in foreclosure from foreclosure.
SB62,360,1
12. "Foreclosure consultant" does not include any of the following:
SB62,360,32 a. A person licensed to practice law in this state when the person renders
3service in the course of his or her practice as an attorney at law.
SB62,360,74 b. A person licensed as a real estate broker or salesperson under ch. 452 when
5the person engages in acts for which licensure under that chapter is required, unless
6the person is engaged in offering services designed to, or purportedly designed to,
7enable the foreclosed homeowner to retain possession of the residence in foreclosure.
SB62,360,108 c. A person certified or licensed to practice as a certified public accountant
9under ch. 442 when the person is acting in any capacity for which the person is
10certified or licensed under that chapter.
SB62,360,1311 d. A person, or the person's authorized agent, acting under the express
12authority or written approval of the department of housing and urban development
13or other department or agency of the United States or this state to provide services.
SB62,360,1714 e. A person who holds or is owed an obligation secured by a lien on any residence
15in foreclosure when the person performs services in connection with this obligation
16or lien if the obligation or lien did not arise as the result of or as part of a proposed
17foreclosure reconveyance.
SB62,360,2318 f. A person or entity doing business under any law of this state, or of the United
19States, relating to a financial institution, as defined in s. 214.01 (1) (jn), to a lender
20licensed under s. 138.09, to an insurance company, or to a mortgagee that is a federal
21department of housing and urban development approved mortgagee; a subsidiary or
22affiliate of any of these persons or entities; or an agent or employee of any of these
23persons or entities while engaged in the business of these persons or entities.
SB62,360,2524 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.
SB62,361,3
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.
SB62,361,44 i. A foreclosure purchaser.
SB62,361,65 j. An adjustment service company licensed under s. 218.02, but only when
6engaged in business unrelated to real estate.
SB62,361,77 (d) "Foreclosure purchaser" has the meaning given in s. 846.40 (1) (c).
SB62,361,88 (e) "Foreclosure reconveyance" has the meaning given in s. 846.40 (1) (d).
SB62,361,109 (f) "Person" means any individual, partnership, corporation, limited liability
10company, association, or other group, however organized.
SB62,361,1111 (g) "Residence in foreclosure" has the meaning given in s. 846.40 (1) (h).
SB62,361,1212 (h) "Service" includes any of the following:
SB62,361,1313 1. Debt, budget, or financial counseling of any type.
SB62,361,1514 2. Receiving money for the purpose of distributing it to creditors in payment
15or partial payment of any obligation secured by a lien on a residence in foreclosure.
SB62,361,1616 3. Contacting creditors on behalf of a foreclosed homeowner.
SB62,361,1817 4. Arranging or attempting to arrange for a delay or postponement of the time
18of sale of the residence in foreclosure.
SB62,361,2019 5. Advising the filing of any document, or assisting in any manner in the
20preparation of any document for filing, with a bankruptcy court.
SB62,361,2521 6. Giving any advice, explanation, or instruction to a foreclosed homeowner
22that in any manner relates to curing a default in or reinstating an obligation secured
23by a lien on the residence in foreclosure, the full satisfaction of that obligation, or the
24postponement or avoidance of a sale of a residence in foreclosure, under a power of
25sale contained in any mortgage.
SB62,362,4
1(2) Cancellation of foreclosure consultant contract. (a) In addition to any
2other right under law to rescind a contract, a foreclosed homeowner has the right to
3cancel a contract until midnight of the 3rd business day after the day on which the
4foreclosed homeowner signs a contract that complies with sub. (3).
SB62,362,75 (b) 1. Cancellation occurs when the foreclosed homeowner delivers, personally
6or by certified mail, written notice of cancellation to the foreclosure consultant at the
7foreclosure consultant's address specified in the contract.
SB62,362,138 2. If notice of cancellation is given by certified mail, cancellation is effective
9when the notice is deposited in the U.S. mail, properly addressed with postage
10prepaid. If notice of cancellation is personally delivered, the foreclosure consultant
11must give the foreclosed homeowner a receipt. Cancellation, if personally delivered,
12is effective when the foreclosed homeowner hands the notice to the foreclosure
13consultant.
SB62,362,1714 (c) Notice of cancellation given by the foreclosed homeowner need not take the
15particular form provided with the contract under sub. (3) (e). However expressed,
16notice is effective if it indicates the intention of the foreclosed homeowner not to be
17bound by the contract.
SB62,362,20 18(3) Contract. (a) Every contract must be in writing and must fully disclose
19the exact nature of the foreclosure consultant's services and the total amount and
20terms of compensation.
SB62,362,2321 (b) The following notice, printed in not less than 14-point boldface type and
22completed with the name of the foreclosure consultant, must be printed immediately
23above the statement required by par. (c):
SB62,362,2424 NOTICE REQUIRED BY WISCONSIN LAW
SB62,363,2
1.... (name of foreclosure consultant) or anyone working for him or her CANNOT
2do any of the following:
SB62,363,53 1. Take any money from you or ask you for money until .... (name of foreclosure
4consultant) has completely finished doing everything he or she said he or she would
5do.
SB62,363,66 2. Ask you to sign or have you sign any lien, mortgage, or deed.
SB62,363,147 (c) The contract must be written both in English and in the same language as
8principally used by the foreclosure consultant to describe his or her services or to
9negotiate the contract if other than English, must be dated and signed by the
10foreclosed homeowner, and must contain in immediate proximity to the space
11reserved for the foreclosed homeowner's signature, in not less than 10-point boldface
12type, the following statement: "You, the owner, may cancel this transaction at any
13time prior to midnight of the 3rd business day after the date of this transaction. See
14the attached notice of cancellation form for an explanation of this right."
SB62,363,1715 (d) The notice of cancellation form under par. (e) must contain, and the contract
16must contain on the first page, in a type size that is no smaller than that generally
17used in the body of the document, both of the following:
SB62,363,2218 1. The name and street or physical address of the foreclosure consultant to
19which the notice of cancellation is to be mailed by certified mail or personally
20delivered. A post office box does not constitute a physical address. A post office box
21may be designated for delivery by certified mail only if it is accompanied by a street
22or physical address at which the notice may be personally delivered.
SB62,363,2323 2. The date the foreclosed homeowner signed the contract.
SB62,364,324 (e) The contract must be accompanied by a completed form in duplicate,
25captioned "Notice of cancellation." This form must be attached to the contract,

1must be easily detachable, and must contain, in not less than 10-point type and
2written in the same language or languages as used in the contract, the following
3statement:
SB62,364,44 NOTICE OF CANCELLATION
SB62,364,55 (Enter date of transaction)
SB62,364,76 1. You may cancel this transaction, without any penalty or obligation, within
73 business days from the above date.
SB62,364,138 2. To cancel this transaction, you may either mail by certified mail or personally
9deliver a signed and dated copy of this notice of cancellation, or any other written
10notice of cancellation, to .... (name of foreclosure consultant) at .... (street or physical
11address of foreclosure consultant's place of business) NOT LATER THAN
12MIDNIGHT OF .... (date). If you personally deliver a notice of cancellation, .... (name
13of foreclosure consultant) must give you a receipt.
SB62,364,1414 3. I hereby cancel this transaction.
SB62,364,1515 (Date) ....
SB62,364,1616 (Owner's signature) ....
SB62,364,1917 (f) The foreclosure consultant shall provide the foreclosed homeowner with a
18copy of the contract and the attached notice of cancellation immediately upon
19execution of the contract.
SB62,364,2220 (g) The 3 business days during which the foreclosed homeowner may cancel the
21contract shall not begin to run until the foreclosure consultant has complied with this
22subsection.
SB62,364,24 23(4) Violations. It is a violation of this section for a foreclosure consultant to
24do any of the following:
SB62,365,3
1(a) Claim, demand, charge, collect, or receive any compensation until after the
2foreclosure consultant has fully performed each and every service the foreclosure
3consultant contracted to perform or represented that he or she would perform.
SB62,365,84 (b) Claim, demand, charge, collect, or receive any fee, interest, or any other
5compensation for any reason that exceeds 8 percent per year of the amount of any
6loan that the foreclosure consultant may make to the foreclosed homeowner. Any
7loan may not, as provided in par. (c), be secured by the residence in foreclosure or any
8other real or personal property.
SB62,365,119 (c) Take a wage assignment, a lien of any type on real or personal property, or
10any other security to secure the payment of compensation. Any security taken to
11secure the payment of compensation is void and unenforceable.
SB62,365,1412 (d) Receive any consideration from any 3rd party in connection with services
13rendered to a foreclosed homeowner unless the consideration is first fully disclosed
14to the foreclosed homeowner.
SB62,365,1715 (e) Acquire any interest, directly or indirectly or by means of a subsidiary or
16affiliate, in a residence in foreclosure from a foreclosed homeowner with whom the
17foreclosure consultant has contracted.
SB62,365,1918 (f) Except as otherwise provided by law, take any power of attorney from a
19foreclosed homeowner for any purpose.
SB62,365,2120 (g) Induce or attempt to induce any foreclosed homeowner to enter into a
21contract that does not comply in all respects with subs. (2) and (3).
SB62,365,2422 (h) Fail to give a receipt to a foreclosed homeowner if the foreclosed homeowner
23personally delivers timely written notice of cancellation of a contract under sub. (2)
24(b).
SB62,366,5
1(5) Waiver not allowed. Any waiver by a foreclosed homeowner of this section
2or of a foreclosed homeowner's rights under this section is void and unenforceable as
3contrary to public policy. Any attempt by a foreclosure consultant to induce a
4foreclosed homeowner to waive the foreclosed homeowner's rights is a violation of
5this section.
SB62,366,8 6(6) Penalties and remedies. (a) The department of agriculture, trade and
7consumer protection may investigate violations of this section under ss. 93.14 and
893.15.
SB62,366,149 (b) Any person suffering a pecuniary loss because of a violation of this section
10may commence an action against the violator. If the court determines that the person
11suffered a pecuniary loss because of the violation, the court shall award the person
12twice the amount of the pecuniary loss or $200, whichever is greater, for each
13violation, together with costs and, notwithstanding s. 814.04 (1), reasonable attorney
14fees.
SB62,366,1915 (c) The department of agriculture, trade and consumer protection may
16commence an action to restrain a violation of this section. In addition to providing
17any equitable relief, the court may award any person who suffered a pecuniary loss
18because of the violation twice the amount of the pecuniary loss or $200, whichever
19is greater, for each violation.
SB62,366,2220 (d) The department of agriculture, trade and consumer protection or the
21district attorney may commence an action to recover a forfeiture of not less than $100
22nor more than $10,000 for a violation of this section.
SB62,366,2423 (e) Whoever violates this section may be fined not less than $25 nor more than
24$10,000 or imprisoned for not more than one year in the county jail, or both.
SB62,367,4
1(7) Contract provision for arbitration voidable. Any provision in a contract
2entered into on or after the effective date of this subsection .... [LRB inserts date],
3that attempts or purports to require arbitration of any dispute arising under this
4section is voidable at the option of the foreclosed homeowner.
SB62,367,9 5(8) Statutory conflicts related to adjustment service companies. To the
6extent that any provision of this section is inconsistent with s. 218.02 with respect
7to a foreclosure consultant that is licensed under s. 218.02 and engages in
8adjustment service company business related to real estate, the provisions of this
9section shall supersede any conflicting provision of s. 218.02.
SB62, s. 853 10Section 853. 943.62 (2m) of the statutes is amended to read:
SB62,367,1311 943.62 (2m) This section does not apply to a savings and loan association,
12credit union, bank, savings bank, or a mortgage banker, mortgage loan originator,
13or mortgage broker registered licensed under s. 224.72 or 224.725.
SB62, s. 9110 14Section 9110. Nonstatutory provisions; Commerce.
SB62,367,19 15(1) Tenant resource center grant. In fiscal year 2008-09, the department of
16commerce shall award to the Tenant Resource Center in Madison from the
17appropriation under section 20.143 (2) (b) of the statutes, as affected by this act, a
18grant not to exceed $200,000, for providing foreclosure education and assistance to
19tenants throughout the state.
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