Foreclosure Information
There is a common misperception that once a homeowner misses a payment there is an immediate danger of foreclosure. The reality is that foreclosure is a legal process that a lender must go through in order to take possession of the property for which it holds a mortgage. The process for each state is different however the milestones that must be passed are typically the same.
(Certified Distressed Property Institute, LLC 2009)
It is imperative that a homeowner respond to all communication from the lender! Ignoring the problem will not make it go away. Contact us today!
Basic Foreclosure Process
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Default: The homeowner must miss a payment, default on a payment is the only way a property can enter into the foreclosure process. This can also be a missed payment to local taxing authority, a condo or homeowner’s association.
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Legal Notice: The lender or foreclosing party must notify the owner that they are entering into the foreclosure process. This can be done through either personal service of a document or if the owner cannot be located through publication in a legal journal. In Wisconsin this is called Notice of Lis Pendis (or notice of a lawsuit.)
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Bank Sale or Auction Date: The homeowner is informed that he has a bank sale or auction date at which time the foreclosing mortgage company will gain control of the property.
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Redemption Period: Not all states have a redemption period, in cases where there is, and Wisconsin is one of them, this is a period of time in which the homeowner may present payment to the bank and regain possession of the property.
Deficiency Judgment
Wisconsin allows the lender to obtain a deficiency judgment against a homeowner for any amount they are unable to recuperate through a foreclosure or short sale. Lenders must file a separate action in court to recoup these funds.
(Certified Distressed Property Institute, LLC 2009)
Foreclosure vs. Short Sale -- Consequences for Homeowners (.PDF)