2016 Foreclosure Statistics

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total
Brown 36 36 39 23 26 25 19 30 35 14 33 25 341
Calumet 6 8 5 6 4 5 3 8 4 5 4 3 61
Door 3 4 8 7 3 1 2 2 7 2 2 2 43
Florence 0 1 1 0 2 1 0 0 0 0 0 1 6
Forest 1 2 0 0 2 1 1 0 1 1 1 4 14
Kewaunee 3 3 2 4 2 3 1 11 3 3 4 4 43
Langlade 1 10 11 3 5 3 3 10 3 1 5 2 57
Manitowoc 10 16 15 10 16 7 5 10 10 10 16 12 137
Marinette 9 4 10 10 4 4 3 8 9 6 4 6 77
Menominee 0 0 0 2 0 0 0 0 0 0 0 0 2
Oconto 11 7 9 4 4 4 10 3 7 7 3 4 73
Shawano 7 11 7 6 3 4 6 5 8 6 11 5 79
NEWI Total 87 102 107 75 71 58 53 87 87 55 83 68 933
STATE Total 822 893 945 824 728 666 636 808 779 625 768 639  

New Median Income Levels, Effective 11/1/2016

New median income level figures went into effect today.
In the State of Wisconsin, the median income level rose for a household of 1 from $44,817 to $47,804.  For a family of 2, it went up from $59,668 to $62,130.  For a family of 3, from $69,492 to $75,230.  And for a family of 4, from $85,961 to $88,133.
What does this mean for you?  Since the median income levels rose across the board, it means people who are hoping to qualify for Chapter 7 will have an easier time qualifying (based on income) now than yesterday.  Median income levels change about once every 6 months.
Although I don’t have historical data readily available – my recollection is that these are the highest numbers I’ve seen since I began practicing 10 years ago.

Act 376 Passed

The legislation I’ve mentioned in the past and have been tracking (2015 AB 720 / 2015 SB 629) was signed by Governor Scott Walker and published on April 26, 2016, becoming 2015 Wisconsin Act 376.  Accordingly, mortgages executed on or after that date are subject to the new redemption rules.  In the event of a default and a judgment of foreclosure, properties will have a 3 month redemption period (or 6 months if the lender seeks a deficiency) instead of a 6 (or 12) month redemption period.

AB720 Update – Foreclosure Redemption Periods

Quick status update on AB720, which was discussed previously here.  The bill has passed both the Wisconsin State Assembly and the Wisconsin State Senate.  The bill – among other things – slashes the redemption period of a home in foreclosure from 12 months to 6 months (where a deficiency judgment is sought) and more commonly from 6 months to 3 months (where a deficiency judgment is not sought).
Remember that just because a foreclosure case has been filed against you – that does not mean that you have yet lost your home.  Nor does a judgment of foreclosure mean that you have lost your home.  The home is still yours throughout the redemption period, and you have opportunities throughout the redemption period to stop the foreclosure before it heads to the sheriff’s auction, including saving your home through Chapter 13 Bankruptcy.
However, if Governor Scott Walker signs this bill, the applicable redemption periods will be cut in half.

New Median Income Levels

New median income levels (which are basically the starting – yet rebuttable – presumption of whether someone qualifies for Chapter 7 bankruptcy or needs to file under Chapter 13) go into effect April 1, 2016.  For Wisconsin residents, the new levels are as follows:
Household of 1: $44,817 (up $53)
Household of 2: $59,668 (up $71)
Household of 3: $69,492 (up $82)
Household of 4: $85,961 (up $102)
Each Additional Person: + $8,400 (up $300)

Wisconsin’s Foreclosure Redemption Period Cut in Half?

IMPORTANT NEWS FOR HOMEOWNERS AT RISK OF FORECLOSURE
Under existing Wisconsin law, residential properties in foreclosure typically get a 6 month redemption period (and 12 months if the mortgage lender is seeking a deficiency balance).  The redemption period is the time after a court has entered a judgment of foreclosure during which a homeowner can take steps to save his or her home before it is auctioned off.
There has been buzz since last November that legislation was being drafted to slash those periods in half.  That means that instead of 6 months where no deficiency is sought, a homeowner will only have 3 months to act.  If a deficiency is sought, a homeowner would have 6 months instead of 12.
2015 AB 720 was formally introduced on January 15, 2016.  It’s sister bill, 2015 SB 629 was introduced on January 22, 2016.  This is PENDING LEGISLATION.  It is not law yet.  I will be tracking both of these bills very closely and alerting you to updates as I become aware of them.
The shorter redemption period is a double-edged sword.  On the one hand, it does shorten the time a homeowner has to save their home.  On the other hand, if a homeowner chooses not to save their home, it shortens the period that the homeowner is burdened with the responsibilities of owning the home, such as insurance and winterization.
The bill also prevents abandoned homes from lingering without a Sheriff’s Sale.  After a foreclosure judgment is entered, the property must be sold within 12 months or the mortgage lien must be released and the judgment vacated.  However, the bill does not require a mortgage lender to file a foreclosure action after a specified period of delinquency, so so-called zombie mortgages will continue to exist.
For the record, the lobby behind this legislation is the Wisconsin Bankers Association.  The bills have been sponsored/co-sponsored by:

Sen. Frank Lasee (Republican – De Pere)
Sen. Duey Stroebel (Republican – Saukville)
Rep. Terry Katsma (Republican – Oostburg)
Rep. Scott Allen (Republican – Waukesha)
Rep. David Craig (Republican – Big Bend)
Rep. Bob Gannon (Republican – Slinger)
Rep. Adam Jarchow (Republican – Balsam Lake)
Rep. Jesse Kremer (Republican – Kewauskum)
Rep. John Macco (Republican – Ledgeview)

If these bills pass and become law, it means that homeowners will no longer be able to drag their heels if they hope to save their homes from foreclosure.  If you’re at risk of foreclosure, find out how Chapter 13 bankruptcy can help save your home.  Contact me today.

2015 Foreclosure Statistics

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Total
Brown 41 50 50 26 32 31 35 38 37 34 31 27 432
Calumet 5 5 3 8 9 6 2 6 5 4 8 10 71
Door 5 8 3 2 6 4 1 5 3 6 7 6 56
Florence 0 0 0 1 0 1 1 1 2 0 0 0 6
Forest 4 3 0 2 0 0 2 5 3 1 0 2 22
Kewaunee 4 5 4 1 6 2 5 4 4 3 2 1 41
Langlade 4 4 5 7 7 4 3 3 6 6 6 3 58
Manitowoc 11 11 15 11 12 11 18 15 18 18 10 10 160
Marinette 10 8 7 11 10 9 7 4 5 6 4 12 93
Menominee 0 2 2 0 0 0 1 0 1 0 0 0 6
Oconto 7 7 6 6 6 7 7 6 11 3 10 3 79
Outagamie 29 26 23 18 20 30 19 20 23 21 28 24 281
Shawano 4 9 10 8 6 4 2 4 6 4 4 3 64
Waupaca 9 8 12 7 11 11 9 9 13 10 8 6 113
Waushara 7 7 8 3 6 4 6 8 7 6 4 5 71
Winnebago 35 27 30 25 24 25 25 27 24 29 26 26 323
NEWI Total 175 180 178 136 155 149 143 155 168 151 148 138 1876
STATE Total 1085 1049 1112 941 892 860 903 848 1025 962 893 834

Bankruptcy & CCAP

Many people avoid filing for bankruptcy based on the fear that if they do, everyone will find out about it.  Many of them believe that if they file bankruptcy, it will be listed on Wisconsin’s Circuit Court Access (aka CCAP).  This is not the case because CCAP is a portal for state court cases.  Bankruptcy is a matter of federal law.
There is an analogous website to CCAP that does show bankruptcy cases.  This is known as PACER.  Unlike CCAP, which is free and open to the public, PACER requires registration and a paid account, and is primarily used only by legal and financial professionals.
Recently, I had a client call in because she was disappointed to discover that it was not listed on CCAP.  Presumably she was hoping to access information about her bankruptcy case quickly and easily.
So, whether you want it listed on CCAP or are petrified that it will be – the answer is the same.  Federal bankruptcy cases do not show up as cases on CCAP.