Rep. Hintz’s Legislation to Protect Renters Included in Governor’s State Stimulus Package
MADISON – Representative Gordon Hintz (D-Oshkosh) applauded Governor Doyle for incorporating Hintz’s proposed legislation to protect renters in his state budget and state economic stimulus plan. These protections would include requiring a property owner to provide notice to tenants that a foreclosure action has been filed.
"It was brought to my attention that many people in Wisconsin face the trauma of receiving little to no notice that the property they were renting and living in was in foreclosure and being evicted unceremoniously during this difficult economic time,” said Rep. Hintz. “I drafted proposed legislation to address this issue and am pleased and honored that Governor Doyle announced that this provision is included as part of his budget proposal and state stimulus package.”
In a letter to legislative leaders outlining various provisions of the state economic stimulus plan, Governor Doyle included the following language from Rep. Hintz’ proposed legislation that would provide this tenant protection:
Ensure protections for tenants of properties under foreclosure by requiring plaintiffs in a residential rental property foreclosure to provide tenants with notices of foreclosure actions and providing tenants with the ability to recover damages if notices are not given. Provide tenants with the ability to retain residency for up to two months after the sale of a foreclosed property.
Under current law, the lease to property that is subject to a mortgage terminates and a renter may be evicted with little to no notice if the landlord loses the property in a foreclosure action. This provision safeguard renters by requiring notice to be provided, allowing renters to remain in the unit for up to two months after the sale of the property, requiring disclosure to prospective tenants, and allowing renters to withhold rent in the amount equal to the security deposit. A summary of this proposed legislation is below.
Rep. Hintz began working on the legislation after the issue was raised at the Winnebago Fair Housing Coalition meeting last summer where news of a 24-hour tenant eviction raised concern.
“Our upcoming budget process shall be very difficult as we test our ability to tackle this financial crisis that has been brewing. We will be forced to make difficult choices with limited funds, but I encourage my colleagues to support this provision and work to safeguard our citizens from being taken advantage of in this difficult climate.”
A copy of Governor Doyle’s letter to the Legislature can be viewed by visiting the following link:
http://www.wisgov.state.wi.us/docview.asp?docid=15919
Summary of LRB-1251 provided by the Legislative Research Bureau:
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 result of a mortgage foreclosure of the residential rental property.
"It was brought to my attention that many people in Wisconsin face the trauma of receiving little to no notice that the property they were renting and living in was in foreclosure and being evicted unceremoniously during this difficult economic time,” said Rep. Hintz. “I drafted proposed legislation to address this issue and am pleased and honored that Governor Doyle announced that this provision is included as part of his budget proposal and state stimulus package.”
In a letter to legislative leaders outlining various provisions of the state economic stimulus plan, Governor Doyle included the following language from Rep. Hintz’ proposed legislation that would provide this tenant protection:
Ensure protections for tenants of properties under foreclosure by requiring plaintiffs in a residential rental property foreclosure to provide tenants with notices of foreclosure actions and providing tenants with the ability to recover damages if notices are not given. Provide tenants with the ability to retain residency for up to two months after the sale of a foreclosed property.
Under current law, the lease to property that is subject to a mortgage terminates and a renter may be evicted with little to no notice if the landlord loses the property in a foreclosure action. This provision safeguard renters by requiring notice to be provided, allowing renters to remain in the unit for up to two months after the sale of the property, requiring disclosure to prospective tenants, and allowing renters to withhold rent in the amount equal to the security deposit. A summary of this proposed legislation is below.
Rep. Hintz began working on the legislation after the issue was raised at the Winnebago Fair Housing Coalition meeting last summer where news of a 24-hour tenant eviction raised concern.
“Our upcoming budget process shall be very difficult as we test our ability to tackle this financial crisis that has been brewing. We will be forced to make difficult choices with limited funds, but I encourage my colleagues to support this provision and work to safeguard our citizens from being taken advantage of in this difficult climate.”
A copy of Governor Doyle’s letter to the Legislature can be viewed by visiting the following link:
http://www.wisgov.state.wi.us/docview.asp?docid=15919
Summary of LRB-1251 provided by the Legislative Research Bureau:
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 result of a mortgage foreclosure of the residential rental property.
posted by Cheryl Hentz at 11:12 AM
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