Wisconsin Foreclosure Laws

To satisfy borrowers’ unpaid loans, lenders can foreclose the defaulted borrower’s property either by judicial and non-judicial methods. A typical timeline for a Wisconsin foreclosure is about 365 days. There are instances that delays occur. This happens when the borrower files a bankruptcy, seeks delays, or hearings are adjourned.

Judicial And Non-Judicial Foreclosure Information

Since judicial and out-of-court foreclosures are allowed in Wisconsin foreclosure laws, the presence or absence of a Power of Sale provision determines the type of foreclosure to be used. This clause is signed by the borrower in a mortgage agreement which means that the borrower is aware of the consequence in case he or she fails to meet the terms in the contract. When this provision is signed, this gives authority to the lender to foreclose a property in the event that the borrower defaults on his/her payments. The property will be sold to satisfy outstanding balance. An out-of-court foreclosure is applicable when the loan document has a Power of Sale stipulation; otherwise, an in-court foreclosure applies. To initiate this type of foreclosure, the lender files a Notice of Foreclosure. The Notice is filed at the county’s Office of the Recorder.

For judicial foreclosures, the lender must file a complaint (lis pendens) against the defaulted borrower in a county court. A lis pendens serves as a public document which states that there is an impending foreclosure on a property. Since this process is administered in the court system, the court has the final decision on this matter. If the court finds sufficient evidence against the borrower such as failure to cure debt, the foreclosure sale will push through. When a court order has been issued, the borrower can still prevent the sale to occur by providing a full payment of the unpaid loan plus any applicable costs.

Foreclosure laws in Wisconsin allows statutory right of redemption. Redemption rights permits a homeowner to reclaim the property which has been foreclosed. To do this, the homeowner should pay off the total unpaid loan plus any additional costs. Typical redemption period is 12 months.

Under Wisconsin foreclosure laws, deficiency judgment may be obtained by the lender in the event that the income of the sale is less than the amount of the loan. When this is granted to the lender, the borrower is required to pay for the difference between the amount of the property sold at the public auction and the amount of the original loan.

Notice Of Sale Wisconsin

A Notice of Sale is required and should be published within the 12 months. The foreclosure sale is presided by the county Sheriff. The sale is in a form of a public auction where the property is auctioned off to the highest bidder. The court authenticates the result of the auction. The winning bidder should secure payment within ten days of the court’s confirmation.