Foreclosure Sale by Court Order in Wisconsin

By: Alexander Thomas

Wisconsin allows Judicial as well as Non-judicial foreclosure.

What is the processing period for foreclosure in Wisconsin?
It takes around 90 days for foreclosure in Wisconsin.

Is there any right of redemption in Wisconsin for foreclosure?
Yes, Wisconsin offers a right of redemption.

Are deficiency judgments permitted in Wisconsin?
Deficiency judgments are permitted in Wisconsin.

Which law provision governs foreclosure in Wisconsin?
They are found in Wisconsin Statutes and Annotations (2003-2004) Chapter 708.01 et. seq. (Mortgages & land Contracts) and Chapter 846.01 et. seq. (Real Estate Foreclosure).

What happens during Judicial Foreclosure in Wisconsin?
It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. The property is auctioned off to the highest bidder. However in Wisconsin, sale can be made only after one year from the date of the judgment unless the lender waives the right of deficiency. In such case, it can be delayed up to six months or two months if property is abandoned. Sale by mutual consent can happen earlier.

What happens during Non-Judicial Foreclosure in Wisconsin?
Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under 'Guidelines for power of sale foreclosure'.

Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.

Otherwise Non-judicial foreclosure is conducted as follows:
First of all, foreclosure notice must be recorded at the county office before it is published. It must be published once a week for six consecutive weeks in local newspaper of the county. The notice should be sent to the borrower in the same manner that civil process lawsuit is served. If lender can not locate borrower, then the notice should be posted in conspicuous spot on the property and served on any occupant. Said notice must specify the names of the borrower and lender, the date the mortgage was recorded, the amount due at the date of the notice, a property description and the time and place of sale. The winning bidder receives a certificate of purchase. The borrower gets one year period to redeem the property if it has not been confirmed by court order.

In 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 file a deficiency suit. Generally, deficiency suits are not allowed.

This is legal information; it should not be treated as legal advice.

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