Key Takeaways

  • A lis pendens is a legal notice filed in public records signaling that a property is subject to a pending lawsuit, such as foreclosure.
  • In Wisconsin, judicial foreclosure requires filing a lis pendens along with the complaint to notify others of the pending foreclosure action.
  • Filing a lis pendens can affect a property’s marketability, preventing sales or transfers until the issue is resolved.
  • Borrowers can use the lis pendens as a signal to take legal action or seek mediation.
  • There are potential risks and misuse of lis pendens filings, such as frivolous lawsuits or wrongful filings, which may be contested in court.

The Wisconsin foreclosure process goes through the courts and is only begun after a homeowner fails to make payments.

Wisconsin's Foreclosure Process

Foreclosures don't begin unless the homeowner defaults under the loan contract. The loan owner or lender may then engage a mortgage servicer to start the foreclosure process. Most lenders provide borrowers with a grace period in which to make monthly payments. The grace period may be anywhere from 10 to 15 days. On day 16, the lender may issue a late charge.

In Wisconsin, lenders must go to court for a judicial foreclosure proceeding. The court then issues a final judgment of foreclosure. After that, the property will be sold as part of a publicly noticed sale.

To start the judicial foreclosure process, the foreclosing party begins by filing a summons and complaint in court. A lender who seeks a deficiency judgment — or the right to collect any outstanding money after the sale — will include this in the complaint. Most lenders also file a “lis pendens.” This is a document identifying the property and describing the foreclosure. The lis pendens acts as a public notice of the foreclosure.

You have 20 days from the time you get the foreclosure complaint to file a formal answer in court. This is your chance to address all allegations in the complaint. You can deny any that you feel are inaccurate. You can present defenses against the foreclosure as well as claims you may have against the lender.

There is a Foreclosure Mediation Network in Wisconsin. Several counties across the state have mediation programs as well. Using mediation, you work with the servicer to try to come up with an alternative that benefits both the lender and you.

Solutions may include the following:

  • Repayment or forbearance agreement
  • Loan modification
  • Short sale
  • Deed in lieu of foreclosure

In most of these programs, the lender has to attach a notice of availability and application for mediation to the complaint. If the lender doesn't properly attach the right mediation notice forms,  you may have grounds to challenge the complaint. Consult with a foreclosure attorney if you choose to fight the foreclosure in court.

Borrowers have the right to fix any defaults before lenders obtain a judgment. Default cures may include paying all past-due amounts, along with the lender's attorney costs.

Following are the three ways for a lender to obtain a foreclosure judgment:

  • Default: If you fail to file an answer to the complaint, the lender will seek judgment by default, meaning the lender automatically wins.
  • Summary: You file an answer, but the judge finds that the foreclosure should go ahead, so it enters a summary judgment in the lender's favor.
  • Judgment after trial: In the event the case goes to trial, and the court rules in favor of the lender.

Understanding Lis Pendens in Wisconsin Foreclosures

In Wisconsin, a lis pendens foreclosure notice plays a crucial role in the judicial foreclosure process. A lis pendens—Latin for “pending lawsuit”—is a written notice filed in the public land records that alerts potential buyers or interested parties that the property is subject to a legal dispute, such as foreclosure.

When a lender initiates foreclosure by filing a complaint in court, they also typically file a lis pendens with the county register of deeds. This filing:

  • Identifies the property involved in the foreclosure
  • Connects the court case to the specific real estate
  • Serves as formal notice that any sale or transfer of the property is subject to the outcome of the foreclosure

By filing a lis pendens, the lender ensures that any third party purchasing the property does so with knowledge of the legal claim attached. This deters buyers and often limits the owner’s ability to sell or refinance during the litigation period​​​.

Legal Implications of a Lis PendensThe presence of a lis pendens can significantly impact the property:

  • Cloud on title: It renders the property's title less marketable, as buyers may not want to purchase a property involved in litigation.
  • No immediate seizure: A lis pendens does not seize the property or remove the owner’s rights but acts as a warning of potential ownership change.
  • Due process notice: It informs all interested parties that a court ruling could affect ownership or rights related to the property.

Improper or fraudulent lis pendens filings can be challenged and removed by court order. If a lis pendens is filed without a valid basis (e.g., no actual lawsuit pending), the affected party can file a motion to expunge it from the record.

The Redemption Period

If you act within the redemption period time frame, you have the right to redeem your property before the sale. In order to redeem, you have to pay the entire outstanding debt, plus the lender's attorney costs.

Typically, the time to undertake a redemption is 12 months after the sale, unless a court order has confirmed the foreclosure. Some states allow homeowners to redeem for a certain period of time after foreclosure. In Wisconsin, however, redemption takes place before the sale.

For mortgages that were executed before April 27, 2016, the redemption period ranges from five weeks to one year. Mortgages executed after that date have a redemption period ranging from five weeks to six months. When the redemption period ends, the sale proceeds, and there's no longer a right of redemption after that.

If it's possible to divide the property into parcels, you may be able to redeem a portion of the property by giving appropriate notice to the court or coming to an agreement with the lender.

During the redemption period, borrowers may do the following:

  • Refinance
  • Sell the property in order to pay off the lender
  • Engage in a short sale, with the lender's permission

Homeowners in Wisconsin may want to consult with an attorney to find out what options they have before a foreclosure becomes final.

Frequently Asked Questions

  • What is a lis pendens in a Wisconsin foreclosure?
    A lis pendens is a public notice that a foreclosure lawsuit is pending, warning others that the property may be subject to a court decision.
  • How does a lis pendens affect selling a home?
    It places a cloud on the title, making it difficult to sell or refinance the property until the foreclosure case is resolved.
  • Can a lis pendens be challenged in Wisconsin?
    Yes, if it was filed improperly or without a valid underlying lawsuit, a party can petition the court to remove it.
  • Is filing a lis pendens mandatory in Wisconsin foreclosure?
    While not strictly required, most lenders file it with the foreclosure complaint to provide constructive notice of the legal action.
  • Does a lis pendens mean I've lost my home?
    No. It only signals that a legal process is underway. You still have opportunities to respond, seek mediation, or redeem the property before final judgment.

If you need help with the foreclosure process in Wisconsin or another state, you can post your legal need on Upcounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.