Are you a homeowner in Wisconsin facing foreclosure? If so, you may be experiencing anxiety, confusion, and frustration. Losing your home can be terrifying, but you are not the only one who feels this way. Every year, thousands of Wisconsin homeowners face foreclosure, but there are resources available to assist you.
This blog post provides an overview of the foreclosure process in Wisconsin, as well as some tips on how to protect yourself and your loved ones.
What is a Foreclosure, and How Does it Work in Wisconsin?
Foreclosure is the result when a lender seeks to collect unpaid loan balances from a delinquent borrower. As a general rule, federal law prohibits foreclosures until 120 days after your mortgage is past due. A judicial foreclosure will take place if you default on your mortgage payments in Wisconsin.
How to Avoid Foreclosure
If you want to avoid the foreclosure process, you can do a few things. Contact your lender and request a payment plan as your first step. It is not uncommon for lenders to help out homeowners who are having difficulty if they come forward.
A HUD-approved housing counselor or foreclosure prevention specialist might also be able to guide you. A professional can help you better understand your options and devise an effective plan.
The Judicial Foreclosure Process in Wisconsin
Legal foreclosure occurs when the lender files a lawsuit seeking a court order allowing the sale of the property. Your lender serves you a summons and complaint to notify you of the suit. Answers to complaints are usually due within 20 days. A notice about foreclosure mediation might be included with your summons and complaint.
Without a response to the lawsuit, the lender will file a default judgment, which allows them to sell your house in foreclosure. However, if you decide to defend the foreclosure lawsuit, it will go through litigation. The lender might then request summary judgment from the court. Summative judgment motions request that the court grant judgment in favor of the lender because there is no dispute about the important aspects of the case. The judge will order your home sold at auction if the court grants summary judgment to the lender or if you lose at trial.
How to Stop or Delay Foreclosure
If you’re having a tough time making your mortgage payments, it may seem as though there is no way out of foreclosure. However, there are ways to avoid foreclosure even when it’s already in progress.
Reinstate Your Loan
Under Wisconsin law, there is no right to reinstate the loan before the judgment is entered. As a result, the foreclosure will be dismissed by the court. Alternatively, you can reinstate after the judgment (before the sale), which will stay (postpone) the foreclosure; however, if you default on payments again, the foreclosure will proceed.
Redeem Your Property
In some states, foreclosed borrowers can also redeem their homes after the foreclosure sale. In Wisconsin, the redemption period lasts from the date of judgment to the date of the foreclosure sale.
In Wisconsin, the redemption period can range from five weeks to one year, depending on the circumstances, such as whether the bank seeks a deficiency judgment and when you signed the mortgage.
File for Bankruptcy
Bankruptcy can protect you from foreclosure despite its shortcomings. When a bankruptcy is filed, the automatic stay prevents the lender from collecting a debt or foreclosing.
Sell Your Home
Selling your home may be an alternative for you if you’re facing foreclosure. The sale proceeds can be used to pay off your loan and prevent foreclosure.
What if Foreclosure is Inevitable?
Even if foreclosure is inevitable, its effects can still be minimized. Stay in your house until the foreclosure is over to give yourself more time to find a new home.
When considering any action, it is also advisable to seek legal advice. An attorney can help you understand your rights and options to achieve the best outcome.
No one wants to think about the prospect of foreclosure, but if it happens, it’s essential to know what to do. When you understand how foreclosure works and learn about state laws and your options, you can make an informed decision.
What are the Drawbacks of Foreclosure?
In the event of foreclosure, homeowners and communities can suffer adverse consequences. If a homeowner’s credit score has been damaged by foreclosure, finding a new home may prove difficult. Also, it can make it harder for you to get a mortgage or rent an apartment. Homelessness can also result from foreclosures when affordable housing is unavailable.
Communities can also be negatively affected by foreclosures. Unattended vacant or abandoned homes can reduce property values and create safety hazards. Crime rates are also bound to increase as criminals target empty homes.
Resources for Homeowners Facing Foreclosure in Wisconsin
If you are facing foreclosure in Wisconsin, several resources are available to you. The U.S. Department of Housing and Urban Development offers homeowners counseling and assistance to prevent foreclosure.
Sell Your Home Fast & Avoid Foreclosure in Wisconsin Today
Foreclosure can be very stressful and challenging, and it could severely damage your credit, compromising the future of your finances. With the help of your trusted Wisconsin home buyer, you can avoid foreclosure and restore your peace of mind.
We buy houses in any condition at Favor Home Solutions and offer cash offers so you can get back on your feet ASAP. Get in touch with us today for more information about how we can assist you through this challenging time!