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Whether you are facing foreclosure, worried about foreclosure, or simply curious, you may have heard the term judicial foreclosure state. Is Wisconsin a judicial foreclosure state? The team at Kingstad Law will dive into what the term means and what it means for Wisconsin and Milwaukee residents.
What is a Judicial Foreclosure State?
A little under half of the states in the U.S. are considered judicial foreclosure states. Not only is Wisconsin a Judicial foreclosure state, but nearby states like Illinois and Indiana are also Judicial foreclosure states. Looking at our other neighbors, Michigan and Minnesota are not judicial foreclosure states.
A judicial foreclosure state means that according to state law, mortgages are generally not allowed to have what’s called a power of sale clause. This is done to protect the home and property owners from potential wrongdoing by the mortgage lender.
What is a Power of Sale Clause
Many mortgages outside of Wisconsin do contain what is called a power of sale clause. This clause basically gives the bank the right to initiate foreclosure and sell the house in the event that the mortgage goes into default. The bank will then try to sell the home or property in an attempt to repay the mortgage debt.
Do Foreclosures in Wisconsin Have to Go Through the Courts?
Yes, that is at the heart of what we are getting to here. One of the wonderful protections Wisconsin gives you even over a few of our neighbors is that with very few exceptions, every mortgage that goes through foreclosure also has to pass through the court system before it can officially be foreclosed on and sold.
Why is this a Good Thing?
You want your foreclosure to go through the court system because it gives you a chance to fight against the bank. If the bank did anything incorrectly or unjust, this is your chance to get your mortgage back in proper standing and keep your home.
This also gives you an opportunity to explore your options and find other alternatives to keep your home including arbitration and bankruptcy. In any case, a skilled and experienced foreclosure and bankruptcy litigation lawyer will be invaluable.
Read More: What Are the Benefits of Filing for Bankruptcy?
Foreclosure and Bankruptcy Litigation Lawyer Milwaukee
Are you facing foreclosure? Whether you want to fight it or are considering bankruptcy to avoid foreclosure, you want a lawyer you can count on. It’s even better if you can find a local lawyer in the Milwaukee area. That’s where Kingstad Law comes in.
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