My Land Contract was Foreclosed: Can I Save My Property?

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Aug 21

My land contract was foreclosed and the redemption period has ended.
Can I still save my property?

Land contracts are widely used in Wisconsin and provide the seller (usually called the “Vendor”) with various remedies if the Buyer (usually called the “Vendee”) defaults.

The remedy most frequently resorted to is strict foreclosure.  In that type of foreclosure action, the court will set the final maturity date by which the Vendee must perform his obligations under the land contract.  If the Vendee fails to fulfill those obligations by that new maturity date, his interest in the property will be terminated.  No foreclosure sale is necessary and the property will revert to the Vendor.

The time from the entry of the judgment to this new maturity date is called the redemption period.  Certainly you can file a bankruptcy reorganization of some type to prevent the property from reverting to the Vendor prior to the end of the redemption period.

You should even be able to do so after the redemption period has expired, so long as action is taken prior to the entry of an order by the foreclosure court that the equitable title has revested in the land contract vendor.

We have successfully accomplished this for more than one of our clients, but be aware that there are various defenses and challenges which the land contract vendor may assert.  Be sure your attorney is experienced in these matters and get a full explanation of the potential problems.