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THE FORECLOSURE PROCESS
The Foreclosure Process can be a confusing and intimidating mess. Every state is different and every community has slightly different procedures. We are experts in the Foreclosure Process and specifically on how Foreclosures in Kenosha work.
We also have an affiliated company who buys homes for cash and specializes in helping homeowners who are "under water" on their mortgage. For more information on how to sell your home for cash and get out from under your mortgage, you can also visit their website: Kenosha's Cash Home Buyers
This section is designed to educate those in foreclosure, or faced with foreclosure about the entire foreclosure process, the potential scams that predators will attempt, what options are available to homeowners, and how to contact us for help.
Please read the section below about the foreclosure process, and use the buttons to the left to navigate through the STOP FORECLOSURE section of this web-site.
The Foreclosure Process in Kenosha, WI:
(Note: This is provided for informational purposes on the procedures for a typical Wisconsin foreclosure case, and should in no way be construed as legal advice)
NOD - When a homeowner becomes delinquent on his/her mortgage the lender will typically send a NOTICE OF DEFAULT (NOD) after 60-90 days of delinquency, depending on the type of mortgage. This notice will officially notify you of the lender's intent to file a foreclosure action in court. Typically this NOD coincides with the lender's referral of the file to a law firm that specializes on foreclosures in your area.
Lis-Pendens - After the lenders attorney has all the documentation in order, they will file a foreclosure lawsuit, and a LIS PENDENS against your home. The LIS PENDENS will "freeze" title to your property until the foreclosure action has been resolved.
Process Service - The next step is SERVICE. A Process server, constable or sheriffs deputy from the Kenosha County Sheriff's Department will give you a copy of the complaint against you. Once you have received this complaint, you typically have 20 days to file a written answer. This answer must meet certain court requirements, and typically needs to be prepared by an attorney in order to do so. If you actually admit to the allegations in the complaint (for example you actually ARE behind on your payments) or if you do not file the written answer as required, the lender has the right to be granted a judgment for foreclosure.
Motion Hearing - This is a hearing where the sellers attorney moved to have a Judgment entered based on the fact no written answer denying the claims in the complaint has been filed. Once this Judgment is entered, your right of redemption begins.
Judgment - Whether given at the motion hearing or after subsequent court events, the next step (unless the case is dismissed for some reason) typically becomes the entering of a Judgment. This is where a money judgment is entered against you for the entire amount you owe the lender, including interest and attorney's fees. This judgment will also continue to earn interest until paid. The 2nd component to this is the judgment for foreclosure, which allows the property to be auctioned after the redemption period.
Redemption Period - Can be as short as 60 days and as long as a year (or longer) depending on the type of mortgage, whether or not your property is occupied, and whether or not your lender is going to pursue a deficiency judgment.
Sheriffs Sale - After the redemption period is over, the property will be sold at auction or Sheriffs sale to the highest bidder. Often the highest bidder will be the bank, meaning they now own the property.
Confirmation Hearing - After 10 days has passed since the Sheriff's sale a hearing is held for a judge to determine that the sale was done properly, and that no objections have been filed. If there are objections to the sale, the Judge will review them to determine if they are valid. If there are no valid objections
Eviction - After the confirmation hearing, the highest bidder is given possession of the property, and will be assisted by the Sheriff's Department to remove the home owner if necessary.
Deficiency Balance - If the bid is for less than the judgment amount (plus applicable interest) the lender may have a right to pursue a deficiency judgment for the balance. This judgment can be collected by garnishing any wages, and bank accounts you may have. Additionally any 2nd mortgages (home equity loans) and other liens against your home are typically cleared off by listing those creditors as codefendants in the process.
Once your property is lost, these other creditors can come after you personally for the balance of what you owe them.
In some cases the additional creditor is the same lender as your first mortgage lender, so even if the lender waives the right to a deficiency judgment on a first mortgage, they may pursue ALL of the money owed on a 2nd mortgage after the property has been lost in Sheriff's sale.
There are several ways to avoid a Sheriffs sale after the foreclosure judgment has been entered. Here are some of those ways.
- Full Payoff - Either by selling or refinancing your home. The ENTIRE judgment amount plus interest must be paid in this case. Most people in foreclosure cannot qualify for a loan to refinance, but there are rare instances where it is possible.
- Loan Modification/Workout - Sometimes a lender will offer an alternative solution. This typically takes a large payment upfront and increased monthly payments until caught up. Also the lender may not be under any obligation in an agreement such as this to cancel, or move to dismiss the existing foreclosure suit. This means that if the workout agreement is violated in the future, the Sheriff's sale can be rescheduled much more quickly.
- Short Sale - If you can demonstrate that you have sold your home for the highest possible amount, and you have no other assets to give the lender, you may be able to get the remainder of the amount owed to be forgiven by both the first and second mortgage lenders.
- Bankruptcy - a competent bankruptct attorney can tell you whether or not this solution can help with your situation. If your income qualifies, a Chapter 13 may allow you to keep your home, and pay off the arrearage and other bad debt over time.
For more information, or a confidential consultation on your particular situation. Use the REQUEST HELP NOW link or call us at (262) 925-3881. Make sure to ask for Ralph.