Wisconsin Appeals Court OKs Debt Recovery Approach For Foreclosing Lender Holding Two Mortgages On Same Property, Despite Waiving Deficiency Rights

The State Bar of Wisconsin News reports:

• A foreclosing party [in Wisconsin] can cut short a mortgagor’s right to redeem property from 12 months to six if the foreclosing party waives a right to seek a deficiency judgment. When two mortgages exist, foreclosing on one and seeking money damages on the other won’t impact the foreclosing party’s rights to a six-month redemption period.

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• The District III Wisconsin Court of Appeals in Harbor Credit Union v. Samp, 2010AP974 (Feb. 17, 2011), affirmed [a lower court ruling], concluding that “there is no reasonable way to read Wis. Stat. sections 846.04(1) and 846.101 to mean that the money judgment obtained on the second mortgage and note should count as a deficiency judgment for purposes of the foreclosure action.”

For more, see Appeals court clarifies redemption rights when two mortgages, one foreclosed.