SB 629

This bill 1) reduces the redemption period applicable to a foreclosure action

involving certain residential and other noncommercial property from 12 months to

six months if the deficiency is not waived and from six months to three months if the

deficiency is waived; 2) limits who may petition the court in a foreclosure action to

declare mortgaged property abandoned for purposes of reducing the redemption

period; 3) provides that commercial mortgaged property that is abandoned need not

be sold by the plaintiff; 4) provides that, if noncommercial mortgaged property is

abandoned, the plaintiff must, within 12 months after a foreclosure judgment is

entered, either sell the property and have the sale confirmed or release the mortgage

lien and vacate the foreclosure judgment; 5) clarifies that notice of foreclosure sale

may, but is not required to, be given during the redemption period; and 6) provides

that, if a mortgagor is attempting in good faith to sell noncommercial mortgaged

property, the court may increase the applicable redemption period from six months

to eight months if the deficiency is not waived and from three months to five months

if the deficiency is waived.

Under current law, a judgment of foreclosure must specify a length of time,

called a redemption period, during which a mortgagor may redeem the mortgaged

property by paying the entire amount of the mortgage debt, including interest and

costs incurred by the foreclosing plaintiff. Upon redemption, the judgment of

foreclosure and the underlying mortgage are discharged, and the mortgagor retains

the property. The length of the redemption period depends on the type of property

involved and on whether the plaintiff elects to waive judgment for any deficiency

which may remain due to the plaintiff after the property is sold.

Under current law, the redemption period applicable to a one-family to

four-family residence that is owner-occupied at the commencement of the action, a

farm, a church, or a tax-exempt charitable organization (noncommercial property)

is 12 months if the deficiency is not waived and six months if the deficiency is waived.

This bill reduces the redemption period applicable to a foreclosure action involving

noncommercial property from 12 months to six months if the deficiency is not waived

and from six months to three months if the deficiency is waived.

This bill also provides that, if a mortgagor is attempting in good faith to sell

noncommercial mortgaged property and has entered into a listing contract with a

licensed real estate broker to sell the mortgaged property, the court may increase the

redemption period from six months to eight months if the deficiency is not waived

and from three months to five months if the deficiency is waived.

Under current law, if a court finds that the mortgaged property is abandoned,

the redemption period is reduced to five weeks. In

Bank of New York Mellon v.

Carson

, 2015 WI 15, 361 Wis. 2d 23, 859 N.W.2d 422, the Wisconsin Supreme Court