LRB-3498/1
PJH:jld:ph
2011 - 2012 LEGISLATURE
December 7, 2011 - Introduced by Representatives Fields, Marklein, Spanbauer,
Mason, Staskunas, Stroebel, Zepnick and Stone, cosponsored by Senators
Grothman, Taylor and Carpenter. Referred to Committee on Financial
Institutions.
AB414,1,2
1An Act to renumber and amend 846.102; and
to create 846.102 (2) of the
2statutes;
relating to: foreclosure on abandoned properties.
Analysis by the Legislative Reference Bureau
Under current law, in most mortgage foreclosure actions involving a home or
other real property, if a homeowner (borrower) fails to pay the money he or she owes
to the issuer of his or her mortgage (lender), a court may enter a judgment of
foreclosure against the borrower and order that the property be sold at public auction
in order to satisfy the debt the borrower owes to the lender. After the court has issued
a judgment of foreclosure, the borrower may stop the sale of the home by paying off,
within a certain period (redemption period), the amount he or she owes to the lender.
Under current law, abandoned properties have a two-month redemption
period, while most other properties have a redemption period of either six or twelve
months, depending on whether the sale of the home will satisfy the debt owed to the
lender.
This bill shortens the redemption period for abandoned properties from two
months to five weeks. The bill also lists some factors for determining whether a
property has been abandoned and allows the court to receive evidence from a
representative of the city, town, village, or county where the property is located as
to whether the property has been abandoned.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB414, s. 1
1Section
1. 846.102 of the statutes is renumbered 846.102 (1) and amended to
2read:
AB414,2,123
846.102
(1) In an action for enforcement of a mortgage lien if the court makes
4an affirmative finding upon proper evidence being submitted that the mortgaged
5premises have been abandoned by the mortgagor and assigns, judgment shall be
6entered as provided in s. 846.10 except that the sale of such mortgaged premises shall
7be made upon the expiration of
2 months 5 weeks from the date when such judgment
8is entered. Notice of the time and place of sale shall be given under ss. 815.31 and
9846.16 and may be given within
such 2-month the 5-week period. In this section
10"abandoned" means the relinquishment of possession or control of the premises
11whether or not the mortgagor or the mortgagor's assigns have relinquished equity
12and title.
AB414, s. 2
13Section
2. 846.102 (2) of the statutes is created to read:
AB414,2,1714
846.102
(2) A representative of the city, town, village, or county where the
15mortgaged premises are located may provide testimony or evidence to the court
16under sub. (1) relating to whether the premises have been abandoned by the
17mortgagor. Evidence of abandonment may include any of the following:
AB414,2,1818
(a) Boarded, closed, or damaged windows or doors to the premises.
AB414,2,1919
(b) Missing, unhinged, or continuously unlocked doors to the premises.
AB414,2,2020
(c) Terminated utility accounts for the premises.
AB414,2,2121
(d) Accumulation of trash or debris on the premises.
AB414,3,2
1(e) At least 2 reports to law enforcement officials of trespassing, vandalism, or
2other illegal acts being committed on the premises.
AB414,3,43
(f) Conditions that make the premises unsafe or unsanitary or that make the
4premises in imminent danger of becoming unsafe or unsanitary.
