Foreclosure Info

Foreclosure Education: The goal is to make you aware of your options!

Self Analysis
What I can and cannot do for you...
• I CAN NOT fix this problem for you…. You are the only one who can fix the problem
• I CAN educate you on process and possible options

Pre-foreclosure Process
• Somehow, you have run into problems making your mortgage payments.
• As you know from the daily news reports, you are not alone.
• Although it feels like your lender is the enemy, you need to understand that the lender DOES NOT WANT YOUR HOUSE.
• I CAN suggest the various options you have depending on your finances and if you want to try to keep your home or if you would benefit more from selling your home to save your credit.
• Because each situation is unique, I will try to advise you of your best options.
• You have missed a mortgage payment and become 30 days delinquent; you have probably been reported to the credit reporting agencies as “delinquent”.
• Miss a second payment and you become 60 days delinquent. Depending on your mortgage bank/lender and investor, you will now probably start getting calls and letters as part of the “collections” process.
• Miss a third mortgage payment and your mortgage becomes 90 days delinquent. In most cases, your lender is most likely preparing to refer your mortgage to an attorney to start the Foreclosure process.
• (After 105-135 days delinquent, nearly all lenders/investors start to foreclose your mortgage.)
• You will be notified of the start of formal foreclosure by a letter from the lender‟s attorney. This letter, usually called a „notice to cure‟, explains what the lender needs to bring your mortgage current (cure) and what will happen if you are unable to pay.
• This letter automatically adds several hundred dollars of attorney‟s fees to the amount you owe the lender.

IMPORTANT:
• Before the deadline in the attorney letter, the lender will allow you to make up the missed payments PLUS the lender’s attorney fees and costs.
• Once the deadline is passed,the lender has the right to refuse any amount less than the FULL BALANCE OF THE MORTGAGE, including all fees and costs .

If at all possible, try to avoid attorney‟s fees by actively working with your lender beforethe deadline expires.

SOME OF YOUR OPTIONS AT THIS POINT INCLUDE:
• Ask your lender for a forbearance or repayment plan, if you are still unable to pay the full past due amount.

Be prepared to explain:
• WHY you missed your mortgage payments
• HOW you intend to solve the problem.

THE MAIN POINT NOW IS TO BE BOTH HONEST AND REALISTIC.
Do not make promises that you have any doubt you can keep. The lender will only work with you if you play it straight. You have probably already used all of your excuses for being delinquent, now focus on solving the problem.

SOME OF YOUR OPTIONS AT THIS POINT INCLUDE:
• Ask your lender for a forbearance or repayment plan.

Summons and Complaint and Lis Pendens filingA mortgage foreclosure is a civil action that is commenced with the filing of a summons and complaint in the office of the Clerk of Circuit Court in the county where the mortgaged property is located. A Lis Pendens should be filed and recorded to put the public on notice.

Foreclosure Process: The First Formal Step

Summons and Complaint and Lis Pendens Filing
A mortgage foreclosure is a civil action that is commenced with the filing of a summons and complaint in the office of the Clerk of Circuit Court in the county where the mortgaged property is located. A Lis Pendens should be filed and recorded to put the public on notice.

Foreclosure Service
After the summons and complaint have been filed, the plaintiff must serve all of the defendants with copy of the summons and complaint. Service on the State of Wisconsin is accomplished by delivering an authenticated copy of the summons and complaint to the attorney General Copy of summons and complaint is sent to the United States of America in Washington DCPersonal jurisdiction is obtained over a corporation by personal service upon its registered agent.

Default Judgments
If the time for filing an answer has expired and no answer or responsive pleading has been filed or received, counsel for the plaintiff can schedule a motion for default judgment.

Redemption Period At the time the judgment of foreclosure is granted, the court will established a redemption period during witch the defendants to the foreclosure action may redeem the property through a payoff of the mortgage.No sale of the property at a sheriff‟s sale may occur until the applicable redemption period has expired.

(If the property is a 1-4 family residence that is owner-occupied at the commencement of the foreclosure action, the redemption period is 12 months if Lender preserve the right to seek a deficiency)(The redemption period is 6 months if the lender waives its right to a deficiency)Notice of the time and place of the sheriff‟s sale may be given within the 6 month redemption period. The first printing of the notice of the sale may not occur until 4 months after the date that the judgment of foreclosure was entered.

If the court makes an affirmative finding that the property being foreclosed has been abandoned after receiving proper evidence of the abandonment the redemption period is 2 months. A lender does not have to waive its right to a deficiency to obtain the 2 months redemption period under these circumstances.

OTHER AND 1-4 FAMILY
If property is other than a 1-4 family residence that is owner occupied at the commencement of the foreclosure action. This would include investment property, commercial property, or property that is owner occupied but contains more than 1-4 units.

• The redemption period is 6 months if a deficiency is sought. The first printing of the notice of the sale may not occur until 4 months after the date that the judgment of foreclosure was entered.
• The redemption period is 3 months if the lender waives its right to a deficiency. The first printing of the notice of the sale may not occur until 1 month after the date that the judgment of foreclosure was entered.

Sheriff’s Sale
A sheriff sale of the foreclosed property is held at public auction by the sheriff of the county in which the property is located. Prior to the date being held, the sheriff is to give notice of the time and place of the sale in conformity with the provisions of Section 846.16 (1) Wis stats.

Sheriff‟s Posting information must be in three public places in the town or community where the property is to be sold.

A copy of the notice of sale shall be printed each week for 6 consecutive weeks in a newspaper of the county where the property is located prior to the date of the sheriffs sale.

Confirmation of Sheriff’s Sale
The results of the sheriff sale are not final until the court confirms them.

No sheriff sale shall be confirmed by the court unless all parties that have appeared in the foreclosure action have been given 5 days notice of the hearing.

If you are still in the home after foreclosure is completed, your lender may ask the court for a writ of assistance, this will give the lender the legal right to work with the sheriff and a moving company to evict you from the home.