Legal Question in Real Estate Law in Wisconsin

My mother sold a property on a land contract, the property was in her trust, and she has passed away. That property -land contract is the only thing in the trust. My brother and I are the successors to the trust. The buyer of the property has missed 3 payments in the past 1 1/2 years of the land contract. According to the land contract there should have been a balloon payment made in June of 2011, the payments were amortized over 35 years, but my mother never called for the balloon payment she just continued with the land contract. What are our options? This is a condo - purchased in 2009 - buyer still owes about $96,000 - value of the condo in the present market is about $93,000. Additionally the buyer of the condo owes approximately $1300 in taxes and delinquent water and sewer bills to the municipality.


Asked on 2/06/14, 5:05 pm

1 Answer from Attorneys
Thomas Schober Schober Schober & Mitchell, S.C.

If this trust is still active, the Trustee is the one who will have to take action. If the trust is to be terminated, the Vendor's interest in the land contract should be assigned to you and your brother and the two of you need to take action. The action to be taken will be determined by the land contract language. It may be that you will sue for the missing payments or possibly even foreclose. On the other hand, since the property has no equity, you may be best off working things out with the buyers and hopefully getting them back on track. If you do that, an written extension with all agreed terms should be executed by both parties and recorded. This is not simple stuff, and you should definitely consider hiring an attorney well versed in real estate law.

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Answered on 2/06/14, 5:27 pm


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