How Foreclosure Works in Wisconsin

Judicial. Under Wisconsin's real estate foreclosure chapter, a mortgage is foreclosed through a court action: if the lender wins, the court enters a judgment of foreclosure and sale, and the property is later sold by the sheriff or a referee and the sale must be confirmed by the court.

The lender must file a lis pendens (notice of the pending case), and a judgment of foreclosure and sale may not be entered until 20 days after it is filed. After judgment, the sheriff or referee must give notice of the time and place of the sale as provided by law (or as the court directs), including the property's street address and the amount of the judgment; for an internet-based sale, a written notice must be posted at least 3 weeks before the sale. The first printing of the sale notice may not be made until a set time after judgment (for example, at least 4 months after judgment where the waiting period is 6 months). Before the court confirms a sale, all parties who appeared in the case must get at least 5 days' notice of the confirmation hearing.

After the foreclosure judgment, the sale of an owner-occupied 1- to 4-family home must wait: 12 months after judgment if the mortgage was signed before April 27, 2016; 6 months after judgment if signed on or after April 27, 2016 (8 months if, on the owner's motion before judgment, the court finds the owner is trying in good faith to sell the home through a listing with a licensed broker). Shorter waiting periods apply if the lender waives a deficiency judgment under Wis. Stat. § 846.101 (6 months for pre-April 27, 2016 mortgages; generally 3 months for later ones), and special rules apply to abandoned property.

The homeowner (or the homeowner's heirs, personal representatives or assigns) may redeem the property at any time before the sale by paying the clerk of court or the lender the amount of the judgment, interest, costs (including costs after judgment) and any taxes the lender paid after judgment, with interest.