Mortgage Laws In Wisconsin

Wisconsin is one of the many lien theory states of United States of America which has laws stating that the property stays as a primary security until the repayment of the loan. The lien kept herewith on the said property through a drafted document is referred to as mortgage.

PROCEEDINGS FOR FORECLOSURE:

The lender has to approach the court to get a judicial foreclosure so that the court can issue the judgment notice for the foreclosure of the said property which can then be sold publicly. The lender files a complaint in the Circuit Court with lis pendens (is a recorded statement document which is issued to the public stating the details of the foreclosed property).

LEGAL INSTRUMENTS:

Property documents are referred to as mortgage and in case of commercial documents they are known as security agreement. This security agreement and the mortgaged documents are sometimes combined together so as to file a case with all the required evidences i.e., the terms and conditions for the repayment of the said property and the debt incurred which are clearly mentioned on the note.

TIME PERIOD:

Depending upon the courts ruling which takes almost a year before the property can get an undisputed foreclosure or if the lender refrains from using deficiency rights because as per the law of the state the foreclosed property cannot be sold before the lapse of twelve months or until of course the court grants the permission or if there is some recorded document regarding the sale of the said property for which the lender has to wait for a period of six months after the courts orders or the said foreclosed property is left unattended or deserted for more than two months. The legal proceeding may take a longer time in case the borrower requests the court to delay the judgment or files a case of bankruptcy.

NOTICE REQUIREMENTS:

Notice to the public about the sale of the property at least six weeks before the date of the sale is fixed should be put up on the foreclosed property or the sheriff’s sale notice can be put up at three prominent public places three weeks before the sale of the foreclosed property.

RIGHT OF REDEMPTION:

A statutory right of redemption allows the borrower who has lost his claim over the property to reclaim it by paying the lender the full amount along with the other costs that were incurred. The law gives them a time period of twelve months to reclaim their foreclosed property even after the foreclosed property has been sold off until and unless the court has confirmed the foreclosure.

DEFICIENCY JUDGMENTS:

Deficiency judgments can be issued by the court when the foreclosed property is auctioned at a public place and the sale of the said property amounts to less than the money borrowed. The fair market value of the foreclosed property has to be acknowledged to the lenders account before a deficiency judgment is issued.

STATUTES:

There are various laws governing the Wisconsin mortgages which find their bearings in the Wisconsin Statutes and Annotations (2003-2004) Chapter 708.01 et. Seq. (Mortgages & land Contracts).