Did you recently abandon or move out of a property going through foreclosure in Walworth County? Are you a financial institution left with an abandoned property going through a Walworth County foreclosure? A recent Wisconsin Supreme Court decision could have interesting ramifications for both banks and homeowners. The decision states that mortgage lenders must sell foreclosed and abandoned property within a reasonable time after obtaining a foreclosure judgment. The “reasonable time” period will depend on the circumstances surrounding the foreclosure.
The Story Behind the New Walworth County Abandoned Foreclosure Law
The decision came after a Milwaukee home was abandoned following a bank foreclosure process. The homeowner walked away. The bank did nothing. The home was then burglarized and vandalized as well as never properly maintained. The property became invaluable and not worth the bank’s time and money to sell. The home then racked up fines due to violating city codes. The homeowner was held responsible. Despite the homeowner’s attempt to declare the property abandoned, it never happened. The Circuit Court declared it did not have the authority to label a home abandoned.
Fast forward to just last week: In Bank of New York Mellon v. Carson, 2015 WI 2015 (Feb. 17, 2015), a four-justice majority ruled that section 846.102 authorizes circuit courts to order mortgagee banks to sell abandoned foreclosures, and must order sales within a reasonable time. Now, it will be a requirement that foreclosed and abandoned property be sold by banks. You can expect a large amount of properties to be placed on the real estate market in Walworth County following this Wisconsin Supreme Court case.
Homeowners must be aware that, if you abandon your property, you are declaring that you no longer have an interest in retaining the property. Therefore, the bank can and must sell the property without any long delays which previously gave homeowners an opportunity to redeem or refinance.
The purpose of the decision is to help local communities deal with abandoned properties in a timely manner before the properties attract burglars, vandals, and other criminals. The new decision will also help homes be sold before they become decrepit and face city code violations. Vacant properties have a negative impact on our local communities when they are used for the wrong purposes.
Contact Our Walworth County Foreclosure Attorney
If you represent a bank tackling an abandoned foreclosure or if you are a homeowner facing a Walworth County foreclosure or a Kenosha County foreclosure, contact Wynn at Law, LLC. We help financial institutions and homeowners through the foreclosure process. Our Walworth County foreclosure attorney can answer all your foreclosure questions. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Walworth County foreclosure attorney by phone at 262-725-0175 or by email via our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.