Wisconsin Lawyer
Vol. 82, No. 8, August 2009
Foreclosure. A termination of all rights of the mortgagor in the property covered by the mortgage. Black’s Law Dictionary (West: revised 4th ed., 1968). In Wisconsin, a foreclosure judgment is for foreclosure and sale of the mortgaged premises. See Wis. Stat. § 846.01.
Confirmation of sale. Confirmation of the sheriff’s sale is a decision by the court, made after motion by a party, after five days’ notice has been given to all parties who have appeared in the action. See Wis. Stat. § 846.165. The court may not confirm a sale or render judgment for the defendant until after the court is satisfied that the fair value of the premises sold has been credited on the mortgage debt, interest, and costs. See Wis. Stat. § 846.165(2). Fair value of the premises is the fair liquidation price – not the fair market value. Unless the price shocks the conscience of the court, the sale must be confirmed. See Donald A. Schoenfeld, Defending Foreclosure Cases 87-91 (Legal Action of Wisconsin Volunteer Lawyers Project Housing Law Manual Nov. 2008).
Redemption. The mortgagor may reacquire the mortgaged premises before the sale by paying the amount of the judgment, interest, and costs. See Wis. Stat. § 846.13.
Redemption period. Generally, the redemption period runs from the time of judgment to the sheriff’s sale. Redemption periods vary depending on several factors, such as whether the foreclosure action involves a one-to-four family residence that is owner occupied rather than commercial property or a multifamily residence. Although the redemption periods are set by statute, the plaintiff in the foreclosure may waive any claim for deficiency and thus shorten the period (while staying within the statutory guidelines). A deficiency is the amount remaining due to the plaintiff after sale of the mortgaged premises. The periods are two months, three months, six months, and 12 months. For example, if the property is a one-to-four family residence that is owner occupied, and several other conditions are satisfied, the redemption period would be 12 months. However, the plaintiff may waive any claim for deficiency and reduce the redemption period to six months. The foreclosure judgment determines the length of the redemption period. See Wis. Stat. §§ 846.10, .101-103, .30. See also Schoenfeld, Defending Foreclosure Cases, supra.
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