A Wisconsin homeowner defaults on a mortgage. The lender obtains a judgment of foreclosure, and the property is sold at a sheriff's sale for $180,000. The outstanding mortgage balance at the time of sale is $210,000. Under Wisconsin's judicial foreclosure statutes, what is the maximum deficiency judgment the lender may seek against the borrower?
Correct Answer
A) $30,000
Under Wisconsin Statutes Chapter 846, after a judicial foreclosure sale, the lender may seek a deficiency judgment for the difference between the outstanding loan balance and the sheriff's sale price. Here, $210,000 (balance) − $180,000 (sale price) = $30,000. This is the maximum deficiency the lender can pursue. Wisconsin is a judicial foreclosure state, and deficiency judgments are permitted but capped at this difference.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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