Wisconsin Foreclosure Prevention

For 2009, Wisconsin ranked 19th among all states in foreclosure rate, an increase of 78.99% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

In Wisconsin foreclosures are usually handled through the courts unless the mortgage documents have a power of sale clause. When the homeowner is in default the lender informs the borrower of intent to file.

Upon filing the lender must deliver a notice to the homeowner. Once the court has issued a foreclosure judgment a homeowner still in possession has a reinstatement period of 6-12 months to pay off the amount owed.

The sheriff gives notice of the time and place of the foreclosure auction after the reinstatement period is completed. The notice of sale is published weekly for six consecutive weeks in a newspaper of general circulation in the county of the scheduled sale. The first publication has to be at least 10 months after the date the court’s ruling.

A borrower has 12 months to redeem the property only in the absence of court confirmation of the sale. If the lender states in the foreclosure application that it intends to sue for a deficiency balance, it may do so, otherwise the foreclosure sale is considered a complete settlement for the homeowner’s first mortgage debt.

On July 29, 2009 in Baraboo, Wisconsin, a legislative task force on foreclosures held its third and final meeting with mortgage lenders, real estate agents, community advocates and state lawmakers. The purpose of the gatherings was to gather information for a report to be finished by the end of August to determine what bills need to be introduced to confront Wisconsin’s foreclosure problem.

In 2008, the Wisconsin Housing and Economic Development Authority (WHEDA) launched a new website, WisconsinForeclosureResource.com to help distressed Wisconsin homeowners.

The authority urges troubled Wisconsin homeowner to contact Homeowner’s HOPE toll free at 1 (888) 995-HOPE as the first stop for mortgage help from trained counselors.

Click here for the  list of WHEDA approved local counselors Here’s the list of  US Housing and Urban Development approved (HUD) approved counseling agencies in Wisconsin.

If you’re a Wisconsin homeowner in distress, take the following steps:

• Immediately call the customer service number of your mortgage servicer to make payment arrangements, such as a loan modification or workout. Lenders are ready to work with you because, it will lose money if you are foreclosed upon.
• Open and respond to all mail from your lender.
• Know your mortgage rights.
• Prioritize your spending, cutting back on all non-essential bills, including contacting your credit card companies to delay or reduce payments so that you can make your mortgage.
• See if you can sell assets such as a second car or jewelry to raise cash.
• Determine if you qualify for the Obama Administration’s Making Home Affordable Program .
• Try to take on additional work.

If you that you feel that you’ve been the victim of a predatory loan or need foreclosure legal advice the Legal Aid Societies of Milwaukee and Lakelaw are prepared to provide that service to moderate income homeowners. Click here for office locations and phone numbers