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A Wisconsin homeowner won't immediately lose their home to a foreclosure after falling behind on a mortgage payment. Federal law generally gives homeowners 120 days to research foreclosure avoidance options before the bank can start the process.
The servicer will typically send a Notice of Default when the mortgage falls ninety days past due. This timeline is usually governed by the requirements set forth by the investor in the servicing agreement. This Notice is also often accompanied by a Notice of Right to Cure Default.
If the lender does not waive the right to a deficiency judgment, the redemption period is usually 12 months. If the property is deemed abandoned, the timeline is different.
Next, you have to understand that Wisconsin is a judicial foreclosure state, which means there must be, at minimum, notice, an opportunity for the borrower to respond, and a hearing held before a foreclosure is granted.
The Redemption Period in Wisconsin Happens Before the Sale However, under Wisconsin law, you get a specific amount of time before the sale during which you can stop the foreclosure by paying off the total amount of your mortgage debt. This period of time is called the "redemption period."
A foreclosure action is started by filing a Summons and Complaint in the county in which the real estate is located. You may be personally served with those documents by the County Sheriff's Department or a private process server. You have 20 days to answer the complaint from the date you are served with it.
Unfortunately, Wisconsin is in good company as most U.S. States are foreclosure recourse states. If you were curious about which states do not allow mortgage providers to take recourse in addition to foreclosure, the list is short with only 12.
How Do I Stop Foreclosure in Wisconsin? Reinstating the Loan. The state's law gives mortgagors the right to reinstate the loan before the judgment. ... Redeeming the Property. Wisconsin has a redemption period wherein they can repurchase their properties once it goes on sale. ... File for Bankruptcy.