How Long Does a Foreclosure Take in Wisconsin?
Obtaining a mortgage loan requires collateral, which is generally the property being purchased. The lender approves the loan based on the value of the property and the borrower's credit rating and income. If the borrower fails to meet payment requirements, the lender can repossess the property through a foreclosure proceeding. Each state has the authority to govern how foreclosure proceedings must be conducted. The foreclosure process in Wisconsin can take more than one year to complete.
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Deliquency
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Essentially, the foreclosure process begins with the first missed payment. Some banks and mortgage companies offer their customers the privilege of a grace period after the payment's due date. Often grace periods are five to 15 days, and if a payment is made within this time frame, the borrowers will only face a late payment fee. However, if a payment is still not paid at the end of the grace period, the account will be flagged as delinquent. The lender most often provides a warning via mail or a telephone call; however, the terms of the warning vary from lender to lender. The lender also decides how long they will allow an account to remain delinquent before they begin foreclosure proceedings. Usually this is between 60 and 90 days, at which point the lender notifies the borrower in Wisconsin that they intend to foreclose.
Filing Suit
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The mortgage company must file a complaint with the court in the county where the property is located. Once it is filed, a copy of the compliant must be sent to the borrower. The court will issue a ruling after review of the case. If the lender wins, the judgment usually consists of payment of the principal loan balance, fees, interest and any costs incurred by the lender otherwise with respect to the property in question. It is the borrower's responsibility to remit this payment to the lender, or the property will be sold at an auction.
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Reinstatement Period
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If the court's ruling is in favor of the lender, the borrower has a period of time to pay what is owed to the lender. This time frame is called the reinstatement period. In Wisconsin, the length of this period varies. Generally, properties that have been abandoned have a two-month reinstatement period. However, most other properties have reinstatement periods lasting up to 12 months. The specific terms of the reinstatement period are determined by the conditions set forth in the mortgage document.
Auction
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The county sheriff holds the auction, or foreclosure sale, at a date determined by his office and the court. The bids will begin at the amount ruled upon by the court. Any buyer wishing to bid on the property must have at least a 10-percent down payment available on the day of the auction. The balance is owed upon confirmation of the sale by the sheriff, which usually takes places within 10 days of the sale. Property ownership is conveyed through a sheriff's deed, which will be filed with the county clerk.
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