Legal Question in Real Estate Law in Wisconsin

Foreclosure process

We were served forclosure papers from Wis. that state we have 20 days to write the court or else an automatic judgement would be entered. Our house has been for sale for 1.5 years and we just had our 1st offer for 82,000 on May 23rd. Our current payoff is about 100,000, so we called Countrywide to see if they would agree to a short sale since this was our first and only offer in 1.5 yrs. Well, 2 months later and they say they still need at least 2 more weeks to decide if they will accept it or not. Our buyer is leaving us on Friday to put another offer in on a different house. I don't blame them for not wanting to wait any longer. My question is, what do I write the court? Can Countrywide stall this out in order to go to foreclosure? They feel they can get more money in a sherriff's auction, but I have letters from sales agents that state the area the house is in, they can not sell it for more than 85,000. If it does go to auction and sells for less than the 82,000 we just had the offer at, are we still responsible for the difference since we made good faith effort to sell the house? Thank you!


Asked on 7/18/07, 10:48 am

1 Answer from Attorneys
JAY Nixon nixon law offices

Foreclosure Process and Short Sales

It is impossible to force a mortgage lender to agree to a "short sale" which is for an amount less than what they are owed, although many will agree to one, especially if the borrower has a viable plan to pay off the balance as an unsecured debt. However, in bankruptcy court, such a sale can be forced by the court, so long as it is for a demonstrably fair price approximating the value of the property. Also, more time can be obtained to close a sale in bankruptcy. An opportunity to resume payments and reinstate the loan is even available, but only in chapter 13's. Talk to an experienced bankruptcy attorney as soon as possible. Even if you do nothing, the foreclosure process in WI is likely to take nine to twelve months from the time you are served, so long as you continue to occupy the property and make the bank aware of that fact via your court pleadings. During that time (known as the �redemption period�), you have the right to occupy the structure free of charge, rent it out and keep the proceeds, or sell it (for the entire amount owed, unless the lender agrees to a short sale). Good luck!

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Answered on 7/20/07, 9:44 pm


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