Foreclosures in the State of Wisconsin are mostly handled by the court.
The process of foreclosure is initiated by the lender after he/she files a complaint supported by documents to the court. In order to enable the lender to obtain a ruling from the court, the lender has to deliver a notification of the court filing to the defaulted borrower, and any other concerned parties who may have a stake on the foreclosed property. According to the ruling by the court, if the lender spent any money in the form of repairs, taxes and even insurance then the amount will be include in the total amount owed by the borrower and it will be collectively payable.
A customary warning to the borrower is given by the lender of the intention to foreclose the loan and initiate foreclosure proceedings against the borrower, before filing the documents at the county court.
After the court gives its verdict of foreclosing the borrower's property, the borrower shall be permitted a period of reinstatement and he or she will can pay the debt amount to halt the foreclosure. The period of reinstatement would vary with the terms of mortgage, the date of mortgage, and the occupancy status.
Under the Wisconsin foreclosures law, an abandoned property will have redemption period of no more than two-months while the redemption period for any other property can vary from 6 to 12 months.
The venue and time of the foreclosure sale is notified by the local Sheriff, either as per the law or according to the orders of the county courts judgment. In majority of the cases, the sale of foreclosure cannot be scheduled at a date earlier than the completion of the reinstatement period.
The notice of the foreclosure sales is published during the reinstatement period of 12 months, although the date of the first publication shall not be less than 10 months from the date of the court ruling.
The Wisconsin foreclosure sale is conducted by the Sheriff and any prospective buyer can bid after paying an advance of 10 percent. Ten percent of the bid amount is paid to the Wisconsin County Sheriff. The highest bidder shall be awarded the sale. It is the responsibility of the county Sheriff to file the sales report 10 days from the date of sale, and any deposit made by the bidder has to be sent to the clerk. On the sale being confirmed, the clerk makes payment to the parties to whom the dues are entitled to and transfers the ownership in the name of the prized bidder, who has to make the balance payment.
There are times when the highest bidder is unable to make the balance payment within a period of 10 days from the day of the closing of the sale. In such a situation, the county clerk has the right to forfeit the deposit already made and a resale is ordered. If the sale is not confirmed by the court, the clerk makes a refund of the deposit to the buyer and orders a resale. In the event of any surplus generated, other concerned lien holders have the right to file a notice in the court, and it is up to the court to decide who will be entitled to receive a part of the sales surplus.
If the amount received through the foreclosure sale is lower than the actual default amount, then the court will not confirm the sale and it will issue a judgment for deficiency till the time the Wisconsin court is not satisfied with the value of the property as against the proceeds from the foreclosure sale.
If you need more information about Wisconsin foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.