Legal Question in Real Estate Law in Wisconsin

Getting Out of a Real Estate Mortgage--Non-Married Borrowers--Partition Suits

Getting one's name off of a mortgage obligation is often nearly impossible unless the mortgage is somehow paid off in full. This is the same whether or not the borrowers are married. Banks have no incentive to release anyone from a loan, even if that person abandons the property, because it reduces the bank’s opportunities to collect. Luckily, however, Wisconsin has a legal procedure which can force a judicial sale of the property without a foreclosure, which is known as an action for "partition." Net proceeds of such a sale, after payment of the bank, sale expenses and legal fees, are simply divided between the owners, unless there is an enforceable agreement between the parties requiring otherwise. Courts will sometimes allow an unequal division of sale proceeds depending upon relative contributions of the parties. Either party who can afford to bid for the property can generally do so at such a forced judicial sale. Generally speaking, however, any forced sale will yield a lower price than a voluntary sale, so everyone will generally come out "money ahead" if the parties can cooperate on an orderly private sale. If the parties are married, a divorce court will usually have similar powers to dispose of the property or force a sale.