Legal Question in Credit and Debt Law in Wisconsin

Re: Foreclosure

A deed in lieu of a foreclosure surrenders the property to the lender and eliminates the need for foreclosure -- thus the term: friendly foreclosure".

This must be agreed to by the lender and lenders will NOT agree if there are judgments, other liens, etc. on the property. The lender must complete the foreclosure in order to get rid of those liens.

The debtor also has to sign an "estoppel affidavit" which is a statement under oath that the debtor is conveying his/her interest voluntarily and is not acting under duress.