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Legislature Repeals Foreclosure Notice Requirements for Residential Properties


Since 2007, plaintiffs (e.g. banks and other lenders) in foreclosure actions involving residential property have been required by law to give certain notices to tenants regarding the foreclosure action at various points:

  • When the foreclosure action started;
  • When judgment of foreclosure was entered; and
  • When the confirmation of sale hearing was scheduled.

Notice had to be by personal service or by certified mail with return receipt requested. The law allowed residential tenants a two month hold over period after the confirmation of sale, and the right to withhold up to the amount of the security deposit. The law provided for a $250 penalty for each failure to give a required notice.

The tenant notification rules adopted in 2007 proved cumbersome and expensive. Consequently, as part of the recently enacted budget bill, 11 Wis. Act 32, effective July 1, 2011, the Legislature repealed the tenant notification provisions of the Wisconsin foreclosure statutes. The repeal is effective for any foreclosure action commenced after July 1, 2011. After July 1, 2011, banks and other lenders are no longer required to provide notice to tenants when commencing or completing foreclosure actions. Notices must still be given in cases that started before July 1, 2011. Elimination of these notice requirements should help reduce the expense of foreclosure actions.

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-- E. David Locke, Chairman and CEO of McFarland State Bank

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