Are You Facing Foreclosure in Wisconsin? One Option Before the Sheriff Sale

Note: Next-Door Neighbor Investments is not an attorney and is not providing legal advice. Please consult your attorney with any questions regarding what you may read in this article.

One of the most common misconceptions among homeowners facing foreclosure is that they have no options other than a sheriff sale. This is simply not true. If you are a Wisconsin homeowner, you may have the option to sell your home.

Once you fall behind on payments, it is common to first receive a legal document from your bank, such as a Notice of Default. This initial document will typically outline your overdue payments and set a date by which the loan must be brought current or paid in full.

If the balance is not paid within the outlined timeframe, you may later receive a document such as a Notice of Sale, which states that your property will be put up for auction if the overdue payments are not made. This notice will typically set a future auction date (for example, 21 days from the time of notice).

At any time after receiving your initial Notice of Default and up until the property is sold at auction, you may still be able to sell the property, provided the full balance owed to the bank is paid. This typically includes the remaining mortgage balance, overdue payments, and any applicable penalties or fees.

You will need to contact your bank to confirm that, upon receiving the full payoff amount, they are willing to release the foreclosure. Once this is verified, you may be able to sell your home for what you owe—or potentially even at a profit.

After confirming that the bank will accept payment, it’s important to keep in mind that timelines can be short. Acting quickly to find a buyer is often critical.

Although not required, many homeowners find value in working with a local home-buying company. These buyers may be more likely to use cash, waive contingencies, purchase the property as-is, and close within a shorter timeframe—sometimes in as little as seven days.

However you choose to sell your home after receiving a foreclosure notice is entirely up to you. The most important thing to know is that selling before a sheriff sale may be an option available to Wisconsin homeowners.