Wisconsin Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 90 days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Wisconsin may foreclose on deeds of trusts and mortgages in default using either the judicial or non-judicial foreclosure process. Non-judicial foreclosures are the most common procedure used in Wisconsin.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. In Wisconsin, no sale can occur for one year from the date the judgment is entered unless the lender waives the right to a deficiency. If they do, the delay is only six (6) months or two (2) months if the property is abandoned. Sales by the consent of the borrower may occur earlier.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
If the deed of trust or mortgage has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause does not clarify the time, place and terms of sale, then a foreclosure sale is conducted as follows:
- The notice of foreclosure must first be recorded with the county and then published once a week for six (6) successive weeks in a newspaper in the county where the property is located. If unable to serve the borrower with the notice, it will be posted in a noticeable spot on the mortgaged premises and served on the occupants.
- The sale is by public auction to the highest bidder. The purchaser will receive a certificate of purchase. The certificate must be filed where deeds are recorded.
- If the sale is confirmed by the court, there is no redemption period allowed to the borrower. Otherwise, borrower’s have one year to redeem the property by paying the highest bid at the foreclosure sale plus interest.
Wisconsin law allows a foreclosure sale to be confirmed by court order. If the lender states their intentions in the application for sales confirmation that they intend to file a deficiency suit, they may do so. If they do not specify at that time, they are not allowed.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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