Owning a home is a big deal for individuals in Wisconsin and elsewhere. Keeping that home is an even bigger deal. A home is a major purchase and one that individuals and couples do not take lightly. Unfortunately, financial problems could present themselves, making it challenging to keep up with a mortgage. This is when a homeowner could risk losing their home to foreclosure.
The foreclosure process is essentially a mortgage holder exercising their legal right to gain ownership of the property. It is also the process in which a mortgage lender or third-party lien holder to exercise the right to sell the property, using the proceeds to pay off the mortgage if the mortgage or lien is in default.
Previously, the law was designed to provide automatic ownership of the property to the mortgage holder when the mortgage defaults. However, this has changed. Now the law allows for mortgagors the time to pay off the mortgage before the property is taken away.
There are different types of foreclosure, however, two types are widely used. The first type of foreclosure is one completed by judicial sale. This means that the mortgaged property is sold under the supervision of the court. The proceeds of the sale go towards satisfying the mortgage, then to any lien holders and then to the mortgagor. The second type is foreclosure by power of sale. This sale is not supervised by the court and is a more expedient way of foreclosing on a property.
The foreclosure process can be complex, and each property owner has a different experience with this process, as they have their own unique situation. Whether one seeks to better navigate this process or stop it, it is vital to understand what legal rights one has and how best to execute these rights.