Wisconsin Foreclosure Laws

Expected Timeline: Up to ten months
Security Instrument: Mortgage or Deed of Trust. Mortgage most common.
Type of Process: Judicial or nonjudicial. Judicial foreclosure most commonly used.
Protections for Servicemembers: Wis. Stat. § 21.75
Time to Respond: Homeowners have twenty to thirty days to respond to foreclosure lawsuit. Sheriff sale can not be held until at least one year after judgment is entered in lawsuit. If lender waives right to deficiency judgment, auction may be held six months after judgment.
Reinstatement Period: Homeowners may reinstate any time before final judgment in foreclosure case. Reinstatement may be possible after judgment if homeowners request it of the court.
Protections for High-Cost Mortgages: None.
Redemption Period: None.
Eviction Process: Homeowners may keep possession of property until sheriff sale.
Deficiency Judgments: Allowed if requested in initial foreclosure complaint.
Limits on Deficiency Judgments: Deficiency judgments are allowed if included in the foreclosure action, but court must be satisfied that the house sold for its fair market value. If a lender waives its right to deficiency, the redemption period is shortened.
Cash Exempted in Bankruptcy: $11,000 for single person, $22,000 for married couple.
State Statutes: Wis. Stat. § 846.01 to 846.25

Wisconsin foreclosure law allows the lender to pursue foreclosure by either a Judicial or Non-Judicial process. If the original loan documents do not contain a power of sale clause, then the lender must use the Judicial Foreclosure procedures. The lender must sue the borrower in court to obtain an order to foreclose.

If the lender waives their right to sue the borrower for a deficiency judgment, the sale may be held in two months if the property is abandoned, or in six months otherwise. If the lender does not waive the right to a deficiency judgment, then the sale will be held in one year from the date of the order to foreclose. The sale may be held sooner if the borrower and lender consent to a closer sale date.

If a power of sale clause is present in the original loan documents, the lender may foreclose using Non-Judicial Foreclosure procedures. If the clause states the time, place, and terms of the sale, then those details must be followed.

The notice of sale must be recorded in the county in which the property is located and must be served upon the borrower. If the borrower can not be located, notice of the sale must be posted on the property and served to any occupants of the property. Publication of the notice must be done for six (6) consecutive weeks in a newspaper that is generally circulated in the county.

The sale is conducted as a public auction at the time and place listed in the notice of sale. The sale is permitted to be postponed. The high bidder receives a certificate of sale.

Borrowers in Wisconsin are entitled to a twelve (12) month redemption period if the court does not confirm the sale. However, lenders usually apply for confirmation of the sale.

The lender may only sue the borrower for a deficiency judgment if the intention to sue is specified in the lender's application for confirmation of the sale. Otherwise, the lender may not sue the borrower for a deficiency judgment.

State Website: www.legis.state.wi.us