May 18, 2016
Wisconsin’s foreclosure process, once officially started, usually takes between 11 and 18 months. The speed of a Wisconsin foreclosure depends on how active the homeowner is during the foreclosure process, whether the lender is seeking a deficiency judgment, whether the property is abandoned, and a host of other factors. The article below provides an overview of Wisconsin foreclosure laws. (For more articles on foreclosure in Wisconsin, visit our Wisconsin Foreclosure Law Center.)
A mortgage lender cannot foreclose on your home in Wisconsin unless you default under the contract. Usually that means failing to make payments. Most lenders give borrowers a 10 to 15 day grace period to make monthly payments. In most cases, on day 16, the lender will issue a late charge.
Under federal regulations that went into effect on January 10, 2014, the lender must wait until you are more than 120 days delinquent on the mortgage loan obligation before officially starting a foreclosure in court. This 120-day period is designed to give delinquent borrowers sufficient time to explore ways to avoid a foreclosure.
In Wisconsin, foreclosures are judicial, meaning lenders must go through the courts in order to foreclose on your home. (In some states, called nonjudicial foreclosure states, lenders don’t have to go through the court system to foreclose.) The lender or mortgage servicer files a summons and complaint in court. Most lenders will also file a lis pendens -- a document filed with the county’s Recorder of Deeds that identifies the property and describes the foreclosure action. If the lender is seeking a deficiency judgment against you (the right to collect any money still due after sale of the home), it will include this request in the complaint.
Once you receive the foreclosure complaint, you have 20 days to file a formal answer in court. The answer is your opportunity to address each allegation in the complaint, which means you can deny those that you believe are inaccurate. You may also bring up defenses against the foreclosure and claims you may have against the lender. (To learn more, see our Fighting Foreclosure in Court topic area.)
Wisconsin’s Department of Justice and Attorney General have helped establish a Wisconsin Foreclosure Mediation Network. In addition, several counties in Wisconsin have their own mediation programs. In foreclosure mediation, you and the lender try to come up with an alternative to foreclosure that benefits both you and the lender. Solutions might include a loan modification, repayment or forbearance agreement, short sale, or deed in lieu of foreclosure. (Learn more about these options in our Alternatives to Foreclosure topic area.)
For most of these programs, the lender must attach to the complaint a notice of availability of mediation and an application for mediation. It is possible that if a lender fails to properly attach the proper mediation notice forms, you might be able to challenge the complaint.
To learn more about these programs, see Foreclosure Mediation Programs in Wisconsin.
Before the lender has obtained a judgment, borrowers have the right to cure any defaults by paying all amounts past due plus the lender’s attorneys fees and costs.
The lender must wait 20 days from the filing of a lis pendens before getting a judgment of foreclosure. There are three ways that a lender can obtain a foreclosure judgment.
In Wisconsin, you have the right to redeem the property if you act within a certain period of time. To redeem the property you must pay the entire value of the outstanding mortgage debt plus the lender’s attorneys’ fees and costs.
Regardless of the type of judgment (default, summary, or judgment after trial), the redemption period begins with the entry of judgment and lasts for between five weeks and one year, depending on the circumstances. Wisconsin’s redemption period law changed as of April 27, 2016, so if you want to find out how long your redemption period will be, you’ll want to consult with a foreclosure attorney.
In Wisconsin, if the property can be divided into parcels, it is possible to redeem part of the property by making a motion to the court with appropriate notice, or by agreement with the lender.
During the redemption period, a borrower may refinance, sell the property to pay off the amount due to the lender, or with the lender’s permission, engage in a short sale (a sale of the property for less than the full amount owed).
After the lender gets a judgment, it must publish a notice of sale before it can sell the property. In most instances the lender must wait a certain period of time before it can do so. Here are the rules:
For the most part, the lender must publish the notice for three weeks and it must follow certain procedures as to the manner of publication. The sale, which is open to the public, can only be held after the applicable redemption period has expired.
A confirmation of sale is a hearing where the court makes sure there was no foul play or misconduct and confirms the propriety and validity of the sale. Borrowers must receive at least five days' notice of this hearing before it takes place.
Once the court approves the sale, if a homeowner has not voluntarily left the property, lenders may file a verified petition (a sworn request to the court) for a writ of assistance to obtain possession (this is an order from the court directing the sheriff to assist with obtaining possession). Homeowners must be served with at least ten days’ notice of when and where the petition will be presented. Once a writ of assistance is granted, the date and time of eviction depends mostly upon the sheriff’s office. At that stage, the best way to find out the date and time of the eviction is to contact the sheriff’s office or the lender.