Understanding the Foreclosure Process in Shorewood, Wisconsin
Introduction
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. Understanding the foreclosure process is crucial, especially if you are a homeowner in Shorewood, Wisconsin, facing financial difficulties. This article will guide you through the foreclosure process in Shorewood and provide you with the essential information you need to navigate these challenging times.
1. Notice of Default
The foreclosure process usually begins with a Notice of Default (NOD), which is issued by the lender when the borrower falls behind on mortgage payments. This notice informs the homeowner about the delinquency and gives them a specific time to catch up on the payments. In Shorewood, Wisconsin, the lender must serve the NOD in person or by certified mail.
2. Pre-Foreclosure Period
After receiving the NOD, the homeowner enters a pre-foreclosure period, which typically lasts around 120 days. During this time, the borrower can try to resolve the default by negotiating with the lender, exploring loan modification options, or selling the property to repay the debt. It is essential to communicate and seek assistance from professionals such as foreclosure attorneys or housing counselors to understand your options and make informed decisions.
3. Foreclosure Auction
If the borrower fails to resolve the default during the pre-foreclosure period, the lender will proceed with scheduling a foreclosure auction. The auction is a public sale where the property is sold to the highest bidder. In Shorewood, Wisconsin, foreclosure auctions are typically held at the Milwaukee County Courthouse.
4. REO Properties
If the property does not sell at the foreclosure auction, it becomes Real Estate Owned (REO) by the lender. REO properties are often listed for sale through real estate agents or banks. As a potential buyer, you can explore REO properties in Shorewood, Wisconsin, where you might find opportunities to purchase a property at a discounted price.
5. Eviction Process
Once the foreclosure process is complete, and ownership of the property has transferred to the new buyer or lender, the eviction process may begin for any occupants remaining in the property. It is crucial to understand the local eviction laws and seek legal advice if you are facing eviction after a foreclosure in Shorewood, Wisconsin.
Conclusion
Understanding the foreclosure process in Shorewood, Wisconsin, is critical for homeowners facing financial difficulties. It is important to act promptly and seek professional advice when dealing with foreclosure to explore all possible options and protect your rights. By knowing the steps involved and understanding your rights, you can navigate through this challenging process and make informed decisions.