Foreclosure Timeline In Wisconsin


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Foreclosure Timeline In Wisconsin

  1. 1. FORECLOSURE TIMELINE FOR WISCONSINDate Reviewed: _______________________________________Presented By: _______________________________________ 1. DEFAULT: In order for a lender to begin a foreclosure action, the borrower must “default” on the terms of his or her mortgage. The most common type of default is a failure to make the installment payment when the payment is due. The vast majority of mortgages contain language that allows the lender to accelerate the entire balance of the mortgage and declare it due and owing. This language allows the lender to collect the entire, remaining amount of the mortgage. In today’s environment, it is not unusual for a lender to wait until a borrower misses more than one monthly payment before beginning a foreclosure lawsuit. So it may be 60 days or more from the due date of your first missed payment before a lender begins a foreclosure lawsuit. 2. FORECLOSURE LAWSUIT: Like any other civil action, a foreclosure begins with the filing of a summons and complaint in the clerk of courts office for whatever county the real estate is located. The lender must then serve the parties including the borrower with a copy of the filed lawsuit. Once a party in a foreclosure is served with the summons and complaint, the party has only twenty (20) days to file an answer with the court. Because so many parties either do not care enough to answer or simply do not answer within this time period, after the twenty days expire, lenders ask the court for a “judgment of foreclosure.” It should also be noted that in Wisconsin, the lender must declare in the lawsuit whether or not it will seek a deficiency judgment against the borrower. 3. JUDGMENT OF FORECLOSURE AND REDEMPTION PERIOD: The day on which a judgment of foreclosure is entered is an important date because so many deadlines begin to run from this day. The first important deadline that begins to run is the “redemption” period. “Redemption” means exactly what you probably understand it to mean- the borrower (the debtor) has the opportunity to pay the lender what is owed and end the foreclosure lawsuit.Here are the most common, but not all, of the statutory redemption periods. 1
  2. 2. TIME PERIOD TYPE OF PROPERTY OR CLAIM Two months Abandoned property Three months Commercial property; non-owner occupied residences and multi- family residences with no deficiency judgment Six months Commercial property; non-owner occupied residences, and multi- family residences with deficiency judgment Six months One to four family residences, owner occupied at the commencement of the action with no deficiency judgment; farm, church or tax-exempt non profit charitable organizations with no deficiency judgment Twelve months One to four family residences, owner occupied at the commencement of the action with deficiency judgment; farm, church or tax-exempt non profit charitable organizations with deficiency judgment At the end of the redemption period is the sheriff’s sale of the property. 4. SHERIFF’S SALE: at the end of the redemption period, a sheriff’s sale is held. Typically, a Notice of a Sheriff’s Sale is published about 2 months before the expiration of the redemption period. In Milwaukee County, Sheriff’s sales are typically held on Mondays. Other counties may differ. Anyone can bid at a Sheriff’s sale. This includes the debtor, the lender, or people off the street. The highest bidder for a particular piece of real estate must put down ten (10%) percent of the sales price in cash or certified funds, unless the party foreclosing (the lender) was the highest bidder. The Sheriff’s Sale then must be confirmed or approved by the Court. The confirmation of the sheriff’s sale is typically a very short court hearing at which the circuit court puts its “stamp of approval” on the sale of the real estate. The court normally only looks to see if the sale price “shocks the conscience of the court,” that is, if the highest bid was fair. Once that threshold is passed, the court approves the sale, the highest bidder must pay the balance of the sales price, and the Sheriff’s deed is recorded. The title to the real estate then passes from the borrower (the prior owner) to the highest bidder.THE ABOVE INFORMATION HAS BEEN PROVIDED TO RE/MAX BYATTORNEYS DEUTCH & WEISS, LLC. While the information stated therein isbelieved to be true and accurate, RE/MAX cannot and does not give legal advice.form r – drafted by Attorney Alan H. Deutch for exclusive use by RE/MAX Realty 100 2009 2