Wisconsin foreclosure law

Foreclosures in Wisconsin may be carried out in either a judicial or non-judicial process. The method used depends on the contents of the mortgage contract. The typical wait time for a Wisconsin foreclosure is 90 days, or approximately three months.

Judicial foreclosure
A judicial foreclosure is used when the mortgage or deed of trust does not contain a Power of Sale clause. This clause would otherwise allow the lender to foreclose directly, without having to go to court. In a Wisconsin judicial foreclosure, the lender files a lawsuit against the borrower, and if the court confirms the default, the foreclosure is declared and the home is auctioned off.

In Wisconsin, however, the sale is only conducted one year after the court ruling. Lenders can reduce the wait time to six months by waiving the rights to deficiency claims, which means they cannot sue afterwards for any amount not covered by the foreclosure. If the home is abandoned, the time is further reduced to two months.

Non-judicial foreclosure
The Power of Sale clause allows the lender to proceed with a non-judicial foreclosure. The power to sell may be practiced by the lender himself or a representative, known as the trustee. Non-judicial foreclosures usually follow the time, date, and place specified in the mortgage, but if these terms aren’t provided, the foreclosure proceeds as follows:

1) The lender files a foreclosure notice at the county where the home is located. This notice contains the time and place of the sale, the names of the lender and borrower, the origination date of the mortgage, the amount due, and a description of the home in default.

2) The notice is served to the borrower in the same way as a normal lawsuit. If the borrower cannot be found, the notice is instead posted in a publicly viewable spot on the property itself and served to anyone occupying the home.

3) The sale is conducted at the date and place specified in the notice. The highest bidder will be given a certificate of purchase.

Borrowers usually have a one-year redemption period in non-judicial foreclosures. In Wisconsin, however, the court can confirm a foreclosure sale even when conducted non-judicially. In this case, the right of redemption is cancelled. Deficiency suits are allowed only if the lender has not stated such intentions in their sales confirmation application.

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