Redemption periods in residential foreclosures will be shortened if (or when) 2015 Assembly Bill 720 is enacted, which has passed both houses of the Wisconsin Legislature. A 6-month (rather than a 12-month) redemption period will apply to foreclosure actions in which the lender does not waive its right to a deficiency judgment. Furthermore, a 3-month (rather than a 6-month) redemption period will apply to foreclosure actions in which the lender waives its right to a deficiency judgment. The new redemption periods will apply to foreclosed properties for which the mortgage was recorded on or after the date of Assembly Bill 720’s enactment.
However, the new redemption periods can be extended if the homeowner attempts in good faith to sell his or her property and enters into a listing agreement with a licensed real estate broker. The applicable redemption period extensions will be from 6 months to 8 months if the deficiency is not waived, and from 3 months to 5 months if the deficiency is waived. The upshot is that, if and when Assembly Bill 720 is enacted, lenders will be allowed to sell foreclosed properties sooner than they are currently able.
If you have any questions about how the information in this article may affect you or your business, please contact Norm Farnam at nfarnam@stroudlaw.com or Doug Scriver at dscriver@stroudlaw.com or (608) 257-2281 or your Stroud attorney.
DISCLAIMER: The information in this article is provided for general informational purposes only, is not necessarily updated to account for changes in the law, and should not be considered tax or legal advice. This article is not intended to create, nor does the receipt of it constitute, an attorney-client relationship. You should consult with your own legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.