Wisconsin Foreclosure process

Wisconsin performs its foreclosures judicially.more than five percent (5%) of the judgment. 4)
Specifically the circuit courts of Wisconsin haveAny real estate taxes paid on behalf of the
jurisdiction for the filing of a foreclosure complaint.homeowner. 5) Any insurance paid on behalf of the
There are nine (9) separate steps to the foreclosurehomeowner. 6) Any repairs done on the property on
process in Wisconsin. They are 1) Breach letter; 2)behalf of the homeowner.The judgment will detail the
Complaint to foreclose; 3) Lis Pendens 4) Judgment;amount of money owed to the lender, the date and
4a) default judgment; b) summary judgment 4c) Finaltime of the public sale of the property. The court will
judgment 5) Newspaper Publication; 6) Foreclosurerequire the lender to publish a notice of sale in a
Sale; 7) Confirmation of Sale; 8) Confirmation Hearing;newspaper with a general circulation in the county
9) Deed of Foreclosure.1.) Breach letterThe first stepwhere the property lies once a week for two
in the Wisconsin foreclosure process is for the lenderconsecutive weeks.5) NEWSPAPER
to notify the homeowner by certified mail that hePUBLICATIONThe notice in the newspaper is required
she has breached the contractual terms of theto have the following information contained therein:1)
promissory note and to notify the owner of itsThe time and place of the sale.This notice must be
intention to foreclose on the home and seek apublished for six consecutive weeks prior to the sale
deficiency judgment.This letter will be forwarded towith the first notice not longer than eight (8) weeks
the homeowner prior to the filing of the complaint tobefore the sale.If the sale is adjourned for any
foreclose. This is the end of the private informationreason the continuance and new date must be
which we will only see if we are able to enter thepublished in the newspapers where the property is
home prior to an auction and purchase the propertylocated. The notice in the newspaper is required to
from the homeowner directly.2) Complaint tohave the following information contained therein:
ForecloseThe Complaint to Foreclose is just a lawsuit2) A description of the property to be sold.
which is filed in the circuit court where the property3) The time and place of the sale.
is located. The attorney prepares the complaint after4) A statement that the sale is being made pursuant
a review of the file, performs a title search and hasto a final judgment.
sent a breach letter to the homeowner.It recites the5) The heading of the case.
facts of the breach of contract by the6) The name of the clerk ordering the sale.This
homeowner.For instance the complaint will recite thenotice must be published for two consecutive weeks
amount of the original mortgage, the current amountprior to the sale with the last notice not less than
that the homeowner is behind on the mortgage andfive days prior to the sale. If the sale is continued for
will include all of the other parties of record.3. Lisany reason the continuance and new date must be
PendensA Lis Pendens is filed after the complaint ispublished in the newspapers where the property is
filed to serve as notice to the world that the lenderlocated.6) Foreclosure SaleThe sale is then held in the
has an interest in the property.4) JudgmentThere arecourthouse at the county courthouse where the
three (3) ways that a judgment can happen in aproperty is located. The high Bidder is required to
foreclosure case. First, the bank can win by a defaultdeposit ten percent (10%) of the winning bid by
judgment. Second, the bank can win by summarycertified check or cash with the sheriff. If the high
judgment.Finally, one can win after a trial.4 a)bidder defaults on his obligations to make all
DEFAULT JUDGMENTA default judgment will bepayments within the prescribed time the high bidder
entered after the filing of the complaint and servingswill lose his/her deposit and the property will be
the defendants. The defendant then will either havere-advertised for sale.7) CONFIRMATION OF
a valid defense or not. If none, the court will enter aSALEUpon placing the deposit the sheriff send in a
judgment for the bank by either affidavit or basedmotion for confirmation of sale. The confirmation is
upon oral testimony. Each defendant has to bethen mailed to the parties including the winning bidder
notified of the hearing.In Wisconsin, most foreclosureno less than five (5) days before the confirmation
judgments are entered by default and not after ahearing. The notice shall state the following:
trial due to the consequences of filing a dilitory1) Amount of the judgment
defense. The courts have required some Wisconsin2) amount realized at the sale
lawyers to pay some of the cost and attorney fees3) amount of the personal judgment sought against
of the bank (up to half) when filing an answer just tothe homeowner
delay the inevitable foreclosure.4b) SUMMARY4) the time and place of the hearing.Upon placing the
JUDGMENTIf a homeowner files an answer with adeposit the clerk completes a certificate of sale and
defense then the rules require that a summarythis served upon each interested party. This
judgment hearing will be held within eight monthscertificate of sale states the name of the high bidder
after the filing of the complaint. The summaryand the price paid.8) CONFIRMATION HEARINGThe
judgment is simply a way to get rid of a case thatstandards to confirm a sale are as follows. 1) If the
has no issues of fact before the expense of a trial.sale was above the amount of the debt, there will
The case is heard after either the bank or thebe a presumption that the property sold for a fair
homeowner sends a notice to the other partiesvalue. 2) If the property sold for less than the debt
twenty days prior to the hearing along withthere will be no presumption and the court will review
affidavits. The other side will file opposing affidavitsthe sale until it is satisfied that it has been sold for
and then an evidentiary hearing will be held and afair value and there is a showing that there was a
decision based upon a four prong test.Here the bankmistake, misapprehension, inadvertence on the part
will also file a motion for costs based upon a frivolousof the interested parties or prospective bidders.If the
defense or pleading. Unlike most states, Wisconsin willCourt finds that the property sold for less than fair
require the attorney and the person acting in badvalue the court has three options:
faith to stall for time to pay the fees of the moving1. Order the sale void and schedule for resale.
party.4c) FINAL JUDGMENTOnce the court has2. Set a minimuim upset price for resale.
established that a judgment shall issue, they will enter3. Confirm the sale if what the court feels is fair
into a judgment which will set out the amount of thevalue is credited to the judgment.If no objections are
debt due on the house. The Court can by statutefiled within the next ten (10) days the clerk will file a
add the following items to the judgment. 1) interestcertificate of title. The property then passes to the
from the note to the date of the sale. 2) reasonablehigh bidder.9.
fees for the opinions of title. 3) Attorney fees of no