Legal Question in Real Estate Law in Wisconsin

If you have a short sale pending and the bank files a foreclosure lawsuit, it is absolutely critical that you immediately hire an experienced real estate attorney or a lawyer with extensive bankruptcy/commercial litigation experience to file a legally sufficient answer, disputing the foreclosure well before the end of the 20 day time limit. Otherwise, you are likely to lose the home before you can close on any short sale. You will also lose a tremendous amount of bargaining leverage which would otherwise be available to you if you have an attorney working against the bank on the foreclosure.

Do not assume that I am your attorney due to this answer, but feel free to call my office in Racine (262-633-3090 or email [email protected]) for clarifications or further questions. Otherwise, I would not be taking any further action on your case. See me on the web at www.jayknixonlaw.com. View my past answers at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency , or http://www.lawguru.com/answers/search/attorney/jknixon

The foreclosing mortgagee typically files a lis pendens of record when they file suit. This will need to be resolved prior to or at the short-sale closing (which is, according to your facts, prior to the answer deadline for the foreclosure action).

Whether in the foreclosure action or in the short-sale agreement, I would want to make sure that there is no remaining claim for the deficiency.