Wisconsin Foreclosure Law
Wisconsin foreclosure law is lien-based, which means that your property is what secures a loan. Your mortgage documents list your lender as the entity who can take the property in the event you default. Mortgage documents may also contain a power of sale clause, which details how a foreclosure would be handled. If you are concerned about the possibility of foreclosure, examine your documents to determine how your lender will handle the process.
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Deficiency Judgment
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An important component of the foreclosure process is called a deficiency judgment. If your home sells at a foreclosure auction for less than you owe, the difference is called a deficiency. In some cases, your lender can effectively sue you for this monetary difference, even after your home has been sold. However, in Wisconsin, your lender has the right to waive the deficiency judgment.
Judicial Foreclosure
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If your mortgage documents do not have a power of sale clause, your lender must go to court in order to foreclose on your property. Wisconsin foreclosure law indicates that there must be a delay of one year between the time the case is entered into court records and the actual foreclosure auction. In order to shorten this time period to six months, your lender must waive the right to a deficiency judgment. Your lender only has to wait two months if you abandon your property.
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Non-judicial Foreclosure
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If your mortgage documents have a power of sale clause, it means that you agreed to a foreclosure sale when you originally closed your loan. This pre-agreement says that your lender can simply set a foreclosure sale to repay your loan if you default. This process is called non-judicial because it does not have to go to a court for approval. However, the court has to issue a deficiency judgment.
Notice Requirements
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Some power of sale clauses provide details about the foreclosure sale. If not, your lender must file a foreclosure notice with the county court where your home is located. Your lender is also required to publish the notice once per week for six weeks in a local newspaper. Finally, your lender must provide you a copy of the notice via official service, meaning a process server must find you and personally deliver the notice.
Sale Requirement
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A foreclosure sale in Wisconsin must be in the form of an auction, meaning that the highest bidder will win the right to buy the property from the lender. The sale must be held at the time and location stated either in the power of sale clause or the foreclosure notice.
Right of Redemption
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Right of redemption means that you have a specified time period before the foreclosure sale to repay everything you owe and "redeem" or save your home. Keep in mind that the redemption includes back payments, interest and other costs. If the foreclosure sale was non-judicial, meaning there was no court order, you have 12 months to redeem. If the foreclosure was court-ordered, you do not have the right to redeem after the foreclosure sale.
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