QUESTION
Can sewer district proceed with sheriffs sale for delinquent charges if mortgage foreclosure is suspended? How?
Asked on Sep 09th, 2015 on Foreclosures - Wisconsin
More details to this question:
I received notice that my home was to be put in foreclosure due to mortgage default. The foreclosure is currently suspended along with many others. I also defaulted on a payment arrangement with the sewer district who now states if payment is not made in full by 4/29/15 they will proceed with a Sheriff's Sale. The letter I received from their attorney states, "As you know, our client received a Judgment and Order of Sale from the court." I did not know this. I'm not sure if the judgment they received was due to the foreclosure process being started by the mortgage company or something the sewer district filed. Regardless, I was not aware of it. The house was vacant for over 2 years and I recently found out about their policy on vacant properties. I notified them the property was vacant, however they never told me I was able to file paperwork to stop charges after a vacancy period of 6 months when I notified them so they continued to charge me. There is also now a tenant living in the house. I'd like to know what my options are, as well as my tenants' options. At this point in time, is there still a way I can dispute at least part of the charges because they did not inform me of the vacancy policy? With the foreclosure suspended, do they have a right to proceed with a sheriff's sale? And what rights do my tenants have in all this?
1 ANSWER
Bankruptcy Attorney serving Madison, WI
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The mortgage foreclosure claim and the sewer district claim are two independent issues. One of them can proceed without regard to the other. If you really got no notice of the 'tax sale,' conducted by the Sewer District which is usually just a transfer of the right to receive payment, you can move in the court for a dismissal or suspension of proceedings. But there is a legal presumption that first class mail was delivered to the addressee within 3 business days, so you may find it hard to prove that you did not receive notice. Also, there are apparently a number of creditors' claims you are facing. You might want to consult a bankruptcy lawyer. The Automatic Stay of bankruptcy stops almost all collection actions. But you would have to be ready to file under Ch. 13, and pay the arrears on the mortgage and the sewer district lien (as I assume it is) over the Plan period, which is generally 36 or 60 months. I would find a skilled BR lawyer today. That said, I see that you make some reference to action which must be taken by he 29th of April. Today is the 9th of September, so your question might have become stale. (I don't know what caused the delay.) Good Luck.
Answered on Sep 09th, 2015 at 2:11 PM