Legal Question in Real Estate Law in Wisconsin

Foreclosure, False Claim of Abandonment by Lender vs. Home Owner, Avoid Foreclosure via Chapter 13 Bankruptcy

A claim of abandonment must be promptly contested, as must any claim; otherwise the court will presume that it is true. You therefore need to hire a lawyer immediately to dispute this claim. Abandonment is important because it greatly speeds up the foreclosure time table. You can continue to enjoy all the rights of use of a property in foreclosure for nearly a year or even more, so long as you have not abandoned it. If the bank already has judgment, you can move to reopen it or file a bankruptcy action. Bankruptcy allows any transaction (including judgments) which occurred within 90 days of filing to be avoided by the bankruptcy court. A chapter 13 bankruptcy can also allow you to reinstate your loan, so long as you can afford to resume payments. You need a lawyer ASAP. Congress is also considering revisions in bankruptcy law to allow judges to reduce mortgage balances to the value of the home. Although the banking industry is currently fighting this, they are foolish to do so, since this value is all they will get out of the property via the foreclosure process in any event. on the other hand, the value placed upon the home by the bankruptcy judge is still likely to be higher than the net dollars recovered by the bank via foreclosure.