2010 Wisconsin Code
Chapter 846. Real estate foreclosure.
846.35 Protections for tenants in foreclosure actions.

846.35

846.35 Protections for tenants in foreclosure actions.

846.35(1)

(1) Notices from plaintiff.

846.35(1)(a)

(a) If residential rental property is the subject of a foreclosure action, the plaintiff shall provide the following notices at the following times to the tenants who are in possession of each rental unit when a notice is given:

846.35(1)(a)1.

1. No later than 5 days after the foreclosure action is filed, notice that the plaintiff has commenced a foreclosure action with respect to the rental property.

846.35(1)(a)2.

2. No later than 5 days after the judgment of foreclosure is entered, notice that the plaintiff has been granted a judgment of foreclosure with respect to the rental property and notice of the date on which the redemption period ends.

846.35(1)(a)3.

3. When the confirmation of sale hearing has been scheduled, notice of the date and time of the hearing.

846.35(1)(b)

(b) The notices under par. (a) may be given in any of the following ways:

846.35(1)(b)1.

1. By personal service as provided in s. 801.11 (1).

846.35(1)(b)2.

2. By certified mail with return receipt requested. Notice given under this subdivision is considered completed when it is mailed, unless the envelope enclosing the notice is returned unopened to the plaintiff. All notices mailed under this subdivision shall be mailed in envelopes upon which the plaintiff's, or the plaintiff's attorney's, return address appears, with a request to return to that address.

846.35(2)

(2) Extended possession of premises; withholding last month's rent.

846.35(2)(a)

(a) Notwithstanding ch. 704, all of the following apply to a tenant whose tenancy is terminated as a result of a foreclosure judgment and sale with respect to the rental property:

846.35(2)(a)1.

1. Subject to subd. 3., the tenant may retain possession of the tenant's rental unit for up to 2 months after the end of the month in which the sale of the property is confirmed.

846.35(2)(a)2.

2. The tenant may withhold rent in an amount equal to the security deposit during the last period the tenant actually retains possession of the rental unit, regardless of whether the tenant retains possession after the sale of the property is confirmed, as authorized under subd. 1.

846.35(2)(a)3.

3. The tenant's right to retain possession of the rental unit expires at the end of the month for which the tenant withholds rent, as authorized under subd. 2.

846.35(2)(b)

(b) Subject to par. (a) 2., a tenant who retains possession of the rental unit after the sale of the property is confirmed shall pay rent for the period during which the tenant retains possession at the same rate that applied immediately before the confirmation of the sale of the property.

846.35(3)

(3) Execution of writ of assistance or restitution. No writ of assistance or writ of restitution for the removal of a tenant whose tenancy is terminated as a result of a foreclosure judgment and sale may be executed before the end of the 2nd month beginning after the month in which the sale of the property is confirmed, unless the tenant has waived in writing the right under sub. (2) (a) 1. to retain possession of the rental unit.

846.35(5)

(5) Tenant not named in complaint. In an action for foreclosure of residential real property, the complaint may not name a tenant as a defendant unless the tenant has a lien or ownership interest in the real property.

846.35(6)

(6) Penalties. If a plaintiff fails to provide a notice under sub. (1) (a) in accordance with sub. (1) (a) and (b), or fails to comply with sub. (5), the court shall award the tenant to whom the notice should have been given or who should not have been named as a defendant $250 in damages, plus reasonable attorney fees. A tenant may not recover under this paragraph for more than one notice violation.

846.35 - ANNOT.

History: 2009 a. 2, 28, 276.

846.35 - ANNOT.

The Problem of Lender Compliance with Tenant-Notice Requirements. Farnam & Laubmeir. Wis. Law. Aug. 2009.