For decades there had been a loophole in Wisconsin's foreclosure law that allowed mortgage companies to put a house in foreclosure, but keep the house in the former owners name. Then, the mortgage company will let the house fall apart, rack up municipal fines and unpaid property taxes. When the state and city attempt to collect these municipal fines and unpaid property taxes, the former owner will be on the hook for the municipal fines and unpaid property taxes because his or her name is still on the deed. Whoever is on the deed is ultimately responsible for all fines and property taxes under Wisconsin law.
What this means for an average person is that he or she can file a Chapter 7 or Chapter 13 bankruptcy to give back his or her house, and years later be hit by a lawsuit by the City of Milwaukee or State of Wisconsin for municipal fines or unpaid property taxes. Often it can take up to three or four years for these fines to surface.
No Longer! The Wisconsin Supreme Court in The Bank of New York Mellon v. Carson, has provided a way to to force mortgage companies to take over foreclosed houses. If the house is abandoned, the County Circuit Court can force the mortgage company to take over the house in a reasonable amount of time.
At Croke & Croke, S.C., we know the new law and how to get mortgage companies to live up to its responsibilities by taking back houses on which they foreclosed. If you need help call us at (414) 539-6184, or contact us.
This also means that if you are behind on your house and want to give it back through Chapter 7 or Chapter 13 bankruptcy, we have a powerful new tool to make sure that your mortgage company lives up to its responsibility after Chapter 7 or Chapter 13 bankruptcy and take back your house. You will be able to walk away from your house without owing any mortgage debt! Take a look at our bankruptcy information, if you are still in your house and want to give it back.
Originally poster 3/04/15