Disclaimer: This article is educational only and is not legal advice. Consult a licensed attorney for guidance on your specific situation.
Detailed Answer
In Wisconsin, a foreclosure sale may produce funds in excess of the debt owed. Wis. Stat. § 846.18 governs surplus distributions. To claim those surplus funds, follow these steps:
- Verify the Surplus Amount
After the foreclosure sale, the circuit court clerk issues a sale certificate and ledger showing distributions. If the sale proceeds exceed the mortgage balance, costs, and fees, a surplus exists. (See Wis. Stat. § 846.18.) - Prepare a Verified Petition
Draft a petition titled “Petition for Distribution of Surplus Funds.” Include:- The case caption and foreclosure docket number.
- Your name, address, and interest (e.g., former owner, junior lienholder).
- The amount of surplus claimed.
- A statement that no other petition for these funds is pending.
Cite Wis. Stat. § 846.18(1) as the basis for filing.
- Attach Supporting Documents
Include copies of:- The foreclosure sale certificate or confirmation.
- Your deed or lien documents demonstrating interest.
- A signed affidavit verifying your identity and claim.
- File the Petition with the Clerk
File the petition in the same circuit court that handled the foreclosure. Pay any required filing fee. The court will assign a hearing date if objections arise. - Serve Interested Parties
Under Wis. Stat. § 846.19(1), serve the petition and notice of hearing (if set) on all parties of record, including the foreclosing mortgagee, the former mortgagor, and any junior lienholders. Use certified mail or personal service and file proof of service. - Wait for Response and Hearing
Parties have 20 days to respond. If an objection occurs, the court schedules a hearing. Present evidence of your claim. If unopposed, the court may grant relief without a hearing. - Obtain a Court Order for Distribution
If the court finds your claim valid, it will enter an order directing the clerk to disburse the surplus funds to you. (See Wis. Stat. § 846.20.) - Collect the Funds
Present a certified copy of the court order to the clerk’s office. The clerk will prepare and issue a check for the surplus amount. - Observe the One-Year Deadline
Wis. Stat. § 846.18(2) requires a petition within one year after the sale. Late petitions may be dismissed.
Helpful Hints
- Review the clerk’s distribution ledger early to confirm surplus existence.
- Use the exact foreclosure case number on all filings.
- Keep proof of service and affidavits organized for court review.
- Contact the clerk’s office to verify any filing fees before submission.
- Attend all hearings or submit a waiver in writing if unable to appear.
- Consult an attorney promptly if another party contests your claim.