In Wisconsin, foreclosures are almost always judicial or in court proceedings. The bank must begin the process by filing papers with the court requesting foreclosure. The bank must also make sure that the home owner and anyone else with and interest in the home be notified of the court filing. The judge in the case may decide that additional money to cover the banks expenses, such as insurance, repairs and taxes, will be added to the amount owed in the mortgage.
Historically, banks in Wisconsin, have always advised the home owner that they are going to be filing the foreclosure papers with the court.
Once the judge has issued a judgment of foreclosure a right of reinstatement period begins. During this time the home owner can stop the foreclosure process by paying off the amount owed.
The amount of time involved in this reinstatement period varies widely based on several factors. These factors that are involved in determining the length of the reinstatement period, are the terms of the mortgage, the date the mortgage was signed, the parcel size, whether or not someone is living in the home. Empty houses have a relatively short reinstatement period of between 6 to 12 months.
The sheriff gives the official notice of the time and place of the auction or sale. In almost all instances, that date cannot be schedule until after the reinstatement period has expired. The notice of the sale must be advertised sometime during the reinstatement period. Being that most of these reinstatement time frame vs. 12 months. The first advertisement of the sale date must be at least 10 months following the date the courts ruling was entered.
When the sale date does arrive it is conducted by the sheriff. Anyone with 10% of their highest bid may participate in the sale. This 10% amount must be made payable to the county sheriff. In the next 10 days following the sale the sheriff will file a certificate of purchase of the sale and also deposit that money with the clerk of the court. The clerk must then confirm the sale. After this confirmation has occurred, the clerk then pays the bank the money and delivers the deed which transfers ownership of the property to the highest bidder. This winning bidder must come up with a balance of the winning bid amount within 10 days of the confirmation of the sale. If the winning bidder fails to come up with that other 90% of the winning bid price within that 10 day period, then the 10% already spent and deposited with the clerk is lost. It is given to the bank and a new sale date is scheduled.
If on the other hand the clerk does not confirm the sale that 10% paid to the sheriff is refunded to the bidder. In this scenario a new sale date will have to be scheduled as well.
In the very rare instance that more money is bid that is payable to the 1st mortgage lender, then other, or junior lien holders can petition the court will decide who will receive any of that extra money and how much of it they will get.
If less money is bid, than is owed, the property , the judge is completely in charge as to deciding whether or not to accept the winning bid.
The judge will decide if the or she feels that the amount of the winning bid is a fair value or not. If he or she decides that the winning bid is not fair value, the sale will not be confirmed and the money already paid to secure that bid will be returned. At this point a new sale date would be scheduled and if the parties who "lost" that winning bid are still interested in the property they would have to go once again to the front doors at the court house and attempt yet again to be the highest bidder that day.
