Wisconsin Foreclosure Law
The Wisconsin State Foreclosure Law dictates that lenders may avail of the Judicial and Non-Judicial Foreclosure processes to foreclose deeds of trusts or mortgages in default. The typical time of process typically last about 90 days and the deeds of trust and mortgages are the security instruments used. Wisconsin law allows a foreclosure sale to be confirmed by court order. If the lender states their intentions in the application for sales confirmation, then they may sue for a Deficiency Judgment. Otherwise, deficiency judgments are not allowed. The borrower’s Right of Redemption is observed in Wisconsin.
In Judicial Foreclosure, petitioners must file a lawsuit for an order to foreclose. Generally, when the court declares a foreclosure, the property will be auctioned off and awarded to the highest bidder. However, in Wisconsin, no sale may be made for one year from the date the judgment is entered unless the lender waives the right to a deficiency, in which case the delay is six months or two months if the property is abandoned. Sales by consent may be held earlier. Non-Judicial Foreclosure is used when a power of sale clause exists in the security instruments. “Power of Sale” is the process wherein the borrower agrees to sell the property to settle the remaining balance from a loan in case of default. Its difference from the judicial foreclosure is that it doesn’t need any court order to auction off the property. The lender or their representative, commonly referred to as the “trustee,” may execute the “power of sale.”
Power of Sale Foreclosure Guideline
Should the security instruments contain a power of sale clause, the time, place, and terms of sale specified therein should be strictly followed. Otherwise, the non-judicial foreclosure should be carried out through the following process:
- The Notice of Foreclosure must be filed in the Office of the Recorder of the county in which the property is located. The notice must include the names of the lender and the borrower; the recorded date of the mortgage; the amount owed; a legal description of the property; and the date, time, place, and terms of the foreclosure sale.
- A copy of the Notice of Foreclosure must be served upon the borrower through certified mail, return receipt requested, to his last known address. Should there be an instance where the borrower cannot be found, then the notice shall be posted in a conspicuous spot within the premises of the mortgaged property, and served to any of its occupants, if there are any.
- A copy of the notice must also be published in a newspaper with a general circulation in the county where the property is located. The notice must be published once a week for 6 consecutive weeks.
- The foreclosure sale must be held at the date, time, and place specified in the Notice of Foreclosure. It may be postponed, if necessary. The foreclosure sale will be conducted through a public auction and the winning bidder will receive a certificate of purchase.
Unless the foreclosure sale has been confirmed by a court order, the borrower has 1 year from the date of the foreclosure sale to redeem the property by paying the amount the property was sold for, plus interest.
Local Wisconsin HUD: Milwaukee Field Office
Henry Reuss Federal Plaza
310 West Wisconsin Avenue
Milwaukee, WI 53203-2289 Phone: (414) 297-3214
Fax: (414) 297-3947
TTY: (414) 297-1423
Wisconsin Foreclosure Help |
