Legal Question in Real Estate Law in Wisconsin

Foreclosure Debt Appearing on Credit Report Post Sheriff's Sale for WI Real Estate RE

WI foreclosures generally waive claims against the borrower because that allows the bank sell the home at a sheriff's sale six months sooner that they could otherwise sell it (if they preserved the personal claim against the borrower). This is known as an "in rem" judgment (in English, against "the thing" only, not against the person). Then the net outcome is one where the borrower no longer owes any money to the bank and the borrowers' wages therefore cannot be garnisheed for any leftover amount if the house sold for less than what was owed. If your credit report says otherwise, this may therefore be a false and defamatory statement which would entitle you to sue the bank and credit bureau for defamation. However, credit reports can lawfully contain any truthful negative information about your credit history for up to seven years (or up to ten years for bankruptcy) and that fact can therefore be lawfully reported. If a judgment of foreclosure was entered against you, that fact will also show up in public records for all eternity, which can include public websites, even though the judgment does not leave you technically owing any money. Arguably, you might be able to obtain and record a satisfaction of any personal judgment once the dust settles post foreclosure, which might clarify this point on your credit report.