SB 488

If a mortgagor (person who takes out a mortgage loan to, for example, buy

property) defaults in the repayment of the loan, the mortgagee (person or entity that

made the loan, such as a bank) may commence a mortgage foreclosure action, the

procedure for which is provided in current law. If the mortgagor owes the money, the

court will enter judgment for the mortgagee, who is the plaintiff in the action. Before

the property may be sold at sheriff's sale, a specified period of time, known as the

redemption period, must elapse during which the mortgagor may pay the amount

owed on the loan. If the amount is not paid by the end of the redemption period, the

property will be sold at sheriff's sale and the amount realized on the sale of the

property will be paid against the amount owed on the loan. The length of the

redemption period, which is usually three months, six months, or a year, depends on

the type of property and whether the mortgagee is seeking a deficiency judgment for

any amount of the default on the loan that is not realized on the sale of the property.

If the court determines that the property has been abandoned, the redemption period

is only five weeks long.

Under this bill, after a mortgage foreclosure action is commenced, an employee

or agent of, or contractor with, the city, village, or town (municipality) in which the

property in foreclosure is located, or a utility company providing water, electric, or

natural gas service to the property, may go on the property, enter into any buildings

on the property, using such reasonable force as is necessary, and take any action

necessary to preserve or protect the property or public health and safety. This may

be done, however, only if the municipality has determined that it is likely that the

property is abandoned, using any reasonable criteria, including the criteria that a

court uses in a foreclosure action to determine that property has been abandoned,

and that it is necessary to preserve or protect the property or public health and safety

or to inspect the property to determine if any action is necessary to preserve or

protect the property or the public health and safety. The bill also provides that, in

a mortgage foreclosure action in which the court has determined that the property

has been abandoned, after judgment is entered for the plaintiff in the action, the

plaintiff may go on the property and enter into any buildings on the property, using

such reasonable force as is necessary, to inspect the property and take any action

necessary to preserve or protect the property. The bill provides immunity from civil

and criminal liability to any employee or agent of, or contractor with, a municipality

in which a property in foreclosure is located or utility company that provides service

to the property, and to a plaintiff in a foreclosure action, for acts or omissions related

to going on, and inspecting, the property and taking any actions authorized under

the bill.

The bill requires the clerk of circuit court for the county in which a mortgage

foreclosure action is commenced to provide notice of the commencement of the action

to the municipality in which the property in foreclosure is located and to the law