SB 78

Under current law, if the owner of real property that is subject to a mortgage

defaults in making payments, the mortgagee, which is usually a financial

institution, may commence a foreclosure action. If the mortgagee (plaintiff) prevails

and obtains a foreclosure judgment, the property owner (mortgagor) may redeem the

property before a sheriff's sale by paying the amount of the judgment to the clerk of

court. If the mortgagor does not redeem the property, it will be sold at a sheriff's sale

after the redemption period, which can last from three months to one year, depending

on the type of property and whether the mortgagor will owe a deficiency, which is the

amount by which the judgment exceeds the amount obtained at the sale.

Also under current law, if property that is subject to a mortgage is leased after

the lien of the mortgage attaches, the lease is subject to termination if the interest

of the mortgagor terminates. Thus, the lease of a tenant to property that is subject

to a mortgage terminates and the tenant may be evicted, if the landlord loses the

property in a foreclosure action.

This bill requires the plaintiff in a foreclosure action against residential rental

property to provide the tenants of the property with notice that a foreclosure action

has been filed, notice that the plaintiff has been granted judgment, along with notice

of the date on which the redemption period ends, and notice of the date and time of

the hearing to confirm the sale of the property. A tenant may recover $250 in

damages if a notice is not given. In addition, the bill provides that a tenant may

retain possession of the rental unit for up to two months after the end of the month

in which the sale of the property is confirmed, and may withhold rent in the amount

of the security deposit for the last period during which the tenant actually retains

possession of the rental unit.

The bill also requires a landlord to notify any prospective tenant in writing that

a foreclosure action has been commenced and, if judgment has been entered, the date

on which the redemption period ends. Any rental agreement entered into during the

pendency of a foreclosure action must include a separate statement, signed by the

tenant, that the landlord has provided the required notices, or it is voidable at the

option of the tenant.

Under current law, the director of state courts has established a consolidated

electronic system that contains information about cases filed in the circuit courts in

the state, including both civil cases and criminal cases. This system, known as the

Consolidated Court Automation Programs (CCAP), contains a variety of information

about the parties to circuit court cases, their attorneys, documents filed with the

court, and deadlines, decisions, and outcomes of cases. The information regarding

case data contained on the CCAP system is available in the court's Internet Web site

called the Wisconsin Circuit Court Access (WCCA). This bill prohibits the placing

of any information on a civil action concerning the removal of a tenant from a

residential rental property in the WCCA Internet Web site if that removal was the