New Wisconsin Law To Reduce "Tenant Blindsiding" In Foreclosure Actions

In Milwaukee, Wisconsin, the Milwaukee Journal Sentinel reports:

• [A] new state law passed as part of the recent budget adjustment bill now protects the rights of tenants during foreclosure. The law requires that landlords provide a written notice to tenants or prospective tenants when foreclosure action begins, and again when the deadline expires for the landlord to pay to avoid foreclosure.

Reportedly, the law, which went into effect March 6, affects foreclosures started after that date and also requires:

1. Banks and financial institutions to provide written notice three times to current tenants of the property in foreclosure: when the foreclosure action begins, when the court issues a judgment of foreclosure and when the property is put up for sale. Failure to provide notice carries a $250 fine plus attorney fees.
2. Tenants may stay in their rental residence for up to two months following the sale of the foreclosed property.
3. If there is a security deposit, the tenants can withhold rent and let the security deposit cover the last month before the foreclosure redemption period expires. That's the time allowed for a property owner to stop the foreclosure from moving forward, a period that generally lasts from six to 12 months.
4. Beginning June 6, the electronic Wisconsin Circuit Court records cannot display information regarding a tenant eviction that was prompted by foreclosure.

Source: Renters blindsided by apartment foreclosures (New law provides help to tenants).

For other posts involving the problems tenants face in homes in foreclosure, go here, go here, go here, go here, and go here. RentSigmaSkimming