SB307: Bill Text

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2011 - 2012 LEGISLATURE

2011 Senate BILL 307

November 28, 2011 - Introduced by Senators Grothman, Taylor and Carpenter, cosponsored by Representatives Fields, Marklein, Spanbauer, Mason, Staskunas, Stone, Stroebel and Zepnick. Referred to Committee on Financial Institutions and Rural Issues.

SB307,1,2 An Act to renumber and amend 846.102; and to create 846.102 (2) of the statutes; 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:

SB307, s. 1 Section 1. 846.102 of the statutes is renumbered 846.102 (1) and amended to read:

SB307,2,12 846.102 (1) In an action for enforcement of a mortgage lien if the court makes an affirmative finding upon proper evidence being submitted that the mortgaged premises have been abandoned by the mortgagor and assigns, judgment shall be entered as provided in s. 846.10 except that the sale of such mortgaged premises shall be made upon the expiration of 2 months 5 weeks from the date when such judgment is entered. Notice of the time and place of sale shall be given under ss. 815.31 and 846.16 and may be given within such 2-month the 5-week period. In this section "abandoned" means the relinquishment of possession or control of the premises whether or not the mortgagor or the mortgagor's assigns have relinquished equity and title.

SB307, s. 2 Section 2. 846.102 (2) of the statutes is created to read:

SB307,2,17 846.102 (2) A representative of the city, town, village, or county where the mortgaged premises are located may provide testimony or evidence to the court under sub. (1) relating to whether the premises have been abandoned by the mortgagor. Evidence of abandonment may include any of the following:

SB307,2,18 (a) Boarded, closed, or damaged windows or doors to the premises.

SB307,2,19 (b) Missing, unhinged, or continuously unlocked doors to the premises.

SB307,2,20 (c) Terminated utility accounts for the premises.

SB307,2,21 (d) Accumulation of trash or debris on the premises.

SB307,3,2 (e) At least 2 reports to law enforcement officials of trespassing, vandalism, or other illegal acts being committed on the premises.

SB307,3,4 (f) Conditions that make the premises unsafe or unsanitary or that make the premises in imminent danger of becoming unsafe or unsanitary.

SB307,3,5 (End)