Foreclosure in Wisconsin: process, timeline and your rights

Judicial or non-judicial?

Judicial. Chapter 846 sets the process: the plaintiff sues to foreclose, a lis pendens is filed, and the court enters a judgment of foreclosure and sale. The statute bars judgment until 20 days after the lis pendens is filed (§ 846.01(2)). A federal rule limits when the lender may start. A servicer may not make the first notice or filing for a foreclosure until the loan is more than 120 days delinquent, subject to exceptions such as a due-on-sale violation (12 CFR § 1024.41(f)(1)). If you send a complete loss mitigation application more than 37 days before a sale, the servicer generally may not move for judgment or hold the sale until the application is resolved (§ 1024.41(g)).

How long before the house can be sold

The statute fixes the earliest sale date counted from the judgment. It does not fix how long the lawsuit takes before judgment, so we give no total timeline.

The parties may also agree to an earlier sale by stipulation filed with the clerk (§ 846.10(2)(b)).

Example, not a prediction. Suppose a judgment is entered on March 1, 2027 on an owner-occupied house with a 2020 mortgage and no deficiency waiver. The earliest sale date is September 1, 2027. If the mortgage includes the waiver and the lender elects it, the earliest is June 1, 2027.

What happens at the sale

Notice of the sale is posted publicly at least 3 weeks before, and printed once a week for 3 successive weeks in a county newspaper (§ 815.31; § 846.16(1)). For the 6-month wait, the first printing may not be made less than 4 months after judgment (§ 846.10(2)(a)2.a). A sale is an auction between 9 a.m. and 5 p.m. (§ 815.31(6)). A sale may also be run as an internet-based auction, with its own posting rules (§ 846.16(1)(bm)).

A sale must be confirmed by the court. Before confirmation, everyone who appeared in the case gets 5 days’ notice stating the judgment amount, the amount realized and the deficiency sought (§ 846.165). The deed then vests the owner’s title in the buyer and bars the equity of redemption (§ 846.16(2m)). If the sale produces a surplus, it is subject to the court’s order (§ 846.10(3)).

Right of redemption

Before the sale, you “may redeem the mortgaged premises at any time” by paying the clerk of court, or the plaintiff, the judgment amount, interest and costs, plus costs after judgment and any taxes the plaintiff paid (§ 846.13). After the sale is confirmed, the statute makes the deed a bar to your equity of redemption (§ 846.16(2m)). The statutes we read give no separate redemption period after the sale. For land contracts, a court that enters strict foreclosure must set a redemption period of at least 7 working days (§ 846.30).

Deficiency judgments

If the sale brings less than the debt, the lender may ask for a deficiency judgment against every party personally liable on the debt (§ 846.04(1)). The court may not confirm a sale below the debt, or enter a deficiency judgment, until it is satisfied that the fair value of the property was credited to the debt (§ 846.16(2m)(ae)). Under § 846.101, a lender that elects to waive a deficiency (when the mortgage allows it) gets a shorter waiting period, and you may stay in possession until confirmation unless you abandon the home.

Help for homeowners in default

• Foreclosure mediation. Milwaukee County’s program, run by Metro Milwaukee Mediation Services as part of the Wisconsin Foreclosure Mediation Network, is voluntary for both sides. Its notice (rev. September 2018) says to send the request form within 20 days of receiving the summons, but late requests may still be possible. It covers first or second mortgages on one-to-four family homes. Check your own summons packet, because details and fees may have changed. Mediation does not stop the lawsuit, so do not skip the court’s deadline to answer.
• WHEDA. If you have a WHEDA mortgage, it lists options that “may be available,” including special forbearance, a repayment plan, loan modification, partial claim, pre-foreclosure sale and deed in lieu. The Quality Control and Compliance department is at 800-334-6873.
• HUD-approved counselors. HUD funds “free or very low-cost” counseling; call 800-569-4287. HUD warns against firms that promise to stop foreclosure immediately or charge fees. The CFPB’s Find a Housing Counselor tool searches by ZIP code.
• Your servicer. Use the loss mitigation rules above.

See also Milwaukee, real estate attorneys in Wisconsin and real estate commission if you decide to sell.