There are a number of reasons that may have caused you to be unable to make your current mortgage payments on your Madison WI home such as Job loss, demotion, divorce, death in the family or other financial problems. Regardless of the reason for your mortgage anxiety, we want to be the ones to help save your Madison WI home (and your credit). The first step you should take as the homeowner is to contact your loan service immediately to discuss your options. The longer you halt to contact your lender the fewer options you will have.
How to Avoid Foreclosure in Madison WI
Most homeowners enter foreclosure in Madison WI just on the fact of sheer denial. Unfortunately, ignoring a foreclosure in Madison WI will not make your problem go away. From there other options for you will be: Refinance, Loan Modification, get rid of your house (where we can help), bankruptcy or walk away If you reach the step where you need to get rid of your house, this is where we can assist you. If you have no equity in your home at the time of the missed payments we can always attempt a short sale or catch you up on your payments and do seller finance or lease option deal. I know you may not think you have many options when you're in this situation but make sure you address this issue immediately because the sooner you address it the more options you will have available to you.
If you are going through the foreclosure process in Madison WI, there is still hope. There are options out there for you to still keep your home. We understand that difficult situations happen. They happen to all of us & sometimes we have no control over them. The last position we want to be in is the position of losing our home. There is a lot of misinformation out there about the foreclosure process and every month there seem to be new regulations implemented. The government does not do us any favors when we are placed in the foreclosure process in Madison WI.
If you know that you are going to be unable to make your mortgage payment, the first step you need to take is contacting your lender. The sooner you contact your lender and explain the situation the better. Make them aware of your situation and the reason you will be unable to make your mortgage payments in Madison WI. Upon contacting your lender, they will give you some options. These options are as follows.
In Reinstatement - reinstatement you will agree to pay your lender the entire past-due amount, plus any fees that may have accumulated by an agreed upon date.
Repayment Plan - Under a repayment plan, the lender will divide up all of your late payments and add them on to payments in the future.
Forbearance - Under forbearance, your lender will agree to temporarily reduce or suspend your monthly payments for a period of time. This may allow you to catch up with your payments and get back on your feet. At the end of this period, your regular payments will resume.
Under a loan modification, the lender may work with you to make your monthly payments more affordable. If you had a reduction in pay or have lost your job, this may be the right option for you. This may lengthen the time of your loan, reduce your interest rate or re-amortize Loan Modification -your past due payments.
Remember, your lender does not want you to default on your Madison WI home. They want to work with you to help you keep your home. If you want to have a chance in keeping your Madison WI home throughout the foreclosure process, you have to contact your lender immediately and discuss the solutions they have for you to keep your home.
If you are interested in getting out of your current situation and no longer want to deal with your lender, contact us. We will walk you through our simple home selling process in Madison WI and provide the best alternative to recover from this situation.
Madison WI Foreclosure Laws
Foreclosures in Madison WI are either handled in the courts or out of the courts- court foreclosures are more prominent in the state of Wisconsin. The average days it takes to handle a foreclosure in Madison WI is 445 days. This is much longer than other states. When lenders decide to move forward with the foreclosure process in Madison WI, these lenders go to court which is known as a judicial foreclosure proceeding. Wisconsin has no statutory right of redemption, which would allow a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs.
Wisconsin law requires the court to hold a mandatory settlement conference within 60 days of the filing of the proof of service with the court clerk. At the settlement conference, the lender and homeowner attempt to reach a mutually agreeable way to avoid foreclosure. However, if you cannot come to an agreement at the settlement conference and if you do not respond to the court action within the specified amount of time, the lender can get a default judgment from the court. This means you automatically lose the case. When a lender forecloses on a mortgage, the total debt owed by the borrower to the lender frequently exceeds the foreclosure sale price. The difference between the sale price and the total debt is called a “deficiency.” In some states, the lender can seek a personal judgment against the debtor to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount from the borrower.
In Wisconsin, a deficiency judgment is allowed if a homeowner is personally served or appears in the lawsuit. The amount of the deficiency is the amount of the debt less the higher of:
the fair market value, or
the sales price.
Resources To Help You Handle The Foreclosure Process
By now we understand that dealing with or stopping a foreclosure can become very difficult and they best way to act is to address the issue immedietly. No one wants to be put in this situation but sometimes issues in our life happen and we are forced to take on the foreclosure process. As it can be a very scary time and even make you feel emabrassed, if you take the initiative and take action immedietly, you and your family will be in a much better position becauase of it. We want to try to give you as much information how to handle the foreclosure process as possible so you can make the right decisions and educate yourself on how it works:
1) How To Stop And Avoid Foreclosure - Learn what the best initial steps are to take when entering foreclosure and what options you have. Understand the complete process and all of the options you have, depending on how far along the process your are.
2) Why Selling To A Real Estate Investor May Be Your Best Option- If you find yourself in the foreclosure process, your best option may be finding a way to sell your house fast and hassle free. This is where a real estate investor can help. Learn how the process works, what to expect and if this option is right for you.
3) So Tell Me.. What Exactly Is A Short Sale? - A short sale is another option that you may be forced to use when you are in the foreclosure process. If you owe more on your mortgage than your home is worth, you can take advantage of a short sale. Learn how a short sale works, what to expect when your going through a short sale and who can help you throughout this process.