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American College of Mortgage Attorneys — Partner with the Best®

Formed in 1974, the American College of Mortgage Attorneys (ACMA) is comprised of over 500 lawyers in North America who are experts in mortgage law.

United States

Wisconsin

SECURITY INSTRUMENT USED

(Wis. Stat. &sect;&sect;&nbsp;59.43; 706.05): <ol>
 <li>The paper must be white and at least 20-pound weight.</li>
 <li>The page width must be 8.5”, plus or minus &frac14;”, and the page length must be either 11” or 14”, plus or minus .25”.</li>
 <li>The top margin of each page must be at least &frac12;”, except that company logos may appear within this margin if they do not interfere with any of the other requirements. The margins on the bottom and sides of the instrument must be at least &frac14;”.</li>
 <li>A multi-page instrument must not be hinged or otherwise joined completely at the top or sides.</li>
 <li>An instrument may not contain the social security number of any individual.</li>
 <li>The ink must be black, blue or red (signatures and coded notations on maps may be other colors).</li>
 <li>The name of the instrument must be clear and be located not less than &frac12;” nor more than 3” from the top of the document.</li>
 <li>A horizontal area within 3” of the top of the instrument in the upper left corner of the instrument, not less than &frac12;” x 2”, must be left blank for the unique document number.</li>
 <li>An area in the upper right corner of the instrument, at least 3” x 3”, must be left blank for recording information.</li>
 <li>A horizontal area for the return address, at least 1” x 3”, must be on the instrument in one of the following areas: (a)&nbsp;directly below the recording information described in 9 above; (b)&nbsp;directly below the document number area described in 8 above; or (c)&nbsp;directly below the name of the instrument if the return address does not extend further than 3” from the top of the instrument.</li>
 <li>The instrument must contain appropriate signatures.</li>
 <li>The signatories' names must be printed or typed.</li>
 <li>Notary acknowledgment or authentication must be included for each signature.</li>
 <li>The instrument must include a legal description of the affected land.</li>
 <li>The instrument must include a volume and page number for any recorded document referenced (such as mortgage being satisfied).</li>
 <li>The drafter's name must be printed, typewritten, stamped, or legibly written on the instrument.</li>
 <li>In some counties, the property tax identification number must, and in other counties it may, be located directly below the return address and labeled “parcel identifier number,” “parcel identification number,” “parcel ID number,” “parcel number” or “PIN.” If multiple parcels are affected by the instrument, the space under the return address may be used to refer to another area of the instrument where the parcel identifier number is located.</li>
 <li>The document must be clear and the text and any diagrams or images must be large enough and dense enough to be reproduced or read by a copy machine and a microfilm camera or optical scanner so the image captured is legible.</li>
 <li>Reference to multiple mortgages or mortgage documents in a single instrument is not allowed.</li>
 <li>A separate instrument is required for each mortgage, and each assignment, partial release or satisfaction of mortgage.</li>
</ol>

RECORDING REQUIREMENTS

Generally, the mortgage form does not waive any statutes. However, the mortgagor must agree in writing (e.g. typically done within the mortgage) to Wis. Stat. &sect;&nbsp;846.101 and Wis. Stat. &sect;&nbsp;846.103(2), which permit the mortgagee in qualifying circumstances to waive the right to a deficiency judgment and thereby secure a shorter redemption period, i.e., 3 to 6 months for 1-4-family owner-occupied and 3 months for commercial property.

STATUTES TO BE WAIVED

Commercial Real Estate Loans. The Wisconsin Statutes generally do not provide for unusual treatment of standard provisions such as prepayment penalties, escrows, etc. in connection with non-consumer loans secured by commercial (as opposed to residential) real property. First Mortgage Residential Real Estate Loans. However, there are certain substantive limitations and restrictions applicable to loans secured by a first lien real estate mortgage on 1-4-family dwellings used as the borrower's principal place of residence. Some notable provisions relate to: Prepayment Penalties (Wis. Stat. &sect;&nbsp;138.052(2)(a)): A loan may be prepaid at any time in whole or in part. If prepayment made within 5 years, parties may agree to payment of up to 60 days' interest at contract rate on the amount by which aggregate principal prepayments for 12-month period exceeds 20% of original loan amount. If prepayment made 5 or more years after loan, no prepayment penalty allowed. Refund of Unearned Interest: Upon prepayment, borrower is entitled to a refund of unearned interest pursuant to a formula prescribed by statute. Wis. Stat. &sect;&nbsp;138.052(2)(b). Wis. Stat. &sect;&nbsp;138.052(3) excludes from the definition of interest for refund purposes the following charges/fees: all identifiable and separately itemized charges for service incident to the loan if they are bona fide and paid to third parties; certain fees, discounts or other sums imposed by Ginnie Mae, Fannie Mae, FHLMC or other governmental secondary market purchaser or private secondary market purchaser unrelated to lender; loan administration fee of up to 2% of loan principal amount (conversely must refund “points” in excess of 2%); statutorily authorized prepayment charges as set forth in &sect;&nbsp;138.052(2)(a)); loan commitment fees; and amounts paid to lender by any person other than borrower. Delinquency Charges (Wis. Stat. &sect;&nbsp;138.052(6)): 5% of the amount of unpaid installment more than 15 days past due. Escrow Accounts (Wis. Stat. &sect;&sect;&nbsp;138.052(5) and (5m)): The statutes require the payment of interest on certain escrow accounts and contain rules for the collection, retention, and disbursement of escrowed funds. Variable/Adjustable Rate Loans (Wis. Stat. &sect;&nbsp;138.056): The statutes also contain certain restrictive provisions governing loans with a variable and/or adjustable rate. Attorneys' Fees. (Wis. Stat. &sect;&nbsp;422.411): In all first-mortgage real-estate-secured loans to individuals with an original amount financed of $25,000 or less, the recovery of attorneys' fees is prohibited except in foreclosure cases where creditor or licensed lender may contract for and collect reasonable attorneys' fees not to exceed 5% of amount adjudged due or $100 if settled prior to judgment. Consumer Real Estate Loans Subject to the Wisconsin Consumer Act. The Wisconsin Consumer Act governs loans of $25,000 or less to individuals that are secured by a second or junior mortgage on real estate. Wisconsin Consumer Act loans are subject to specific disclosure requirements and a host of substantive limitations and restrictions. See Chapters 421 to 427.

UNUSUAL TREATMENT OF STANDARD PROVISIONS

(Wis. Stat. &sect;&nbsp;706.11): A mortgage can secure future advances. Section 706.11 governs priority of future advances to certain categories of lenders. A duly recorded mortgage executed to a federal savings and loan association, state or federal savings bank, the department of veterans affairs, the United States, the State of Wisconsin, any county, city, village, town, agency, or other subunit thereof in the State, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Housing and Economic Development Authority, a state or national bank, a state or federally chartered credit union, a mortgage banker, an insurer licensed in the State of Wisconsin, another State-licensed lender, or a chartered member of the federal farm credit system, and that secures future advances retains its priority over intervening liens if the mortgagee did not have actual knowledge of an intervening lien. The statute contains no distinction between obligatory and optional advances. The priority of future advances by lenders other than those listed above continues to be governed by common law. The Wisconsin Supreme Court has held that when optional future advances are made by a first mortgagee with actual knowledge of a second mortgage, the subsequent advances made by the first mortgagee do not have priority over the second mortgage. Colonial Bank v. Marine Bank N.A., 152 Wis.2d 444, 448&nbsp;N.W.2d 659 (1989). By inference under this case, if an advance by the first mortgagee is obligatory, then such advance should have priority over an intervening lien. With regard to the priority status retained by state banks, the Wisconsin Court of Appeals has held that that priority status applies to all state banks, not just Wisconsin chartered state banks. Lowell Management Services, Inc. v. Geneva National PQC, LLC, 2009 WI App 149, 321 Wis. 2d 589, 774 N.W.2d 811, 08-2533.

SECURING FUTURE ADVANCES

Pursuant to Section 706.11(1m)(b)2, a mortgagee may make reasonable advances for the protection of the mortgagee's interest, including payment of real property taxes, property insurance, assessments, or other maintenance charges imposed under a condominium declaration or a restrictive covenant, and such advances by the mortgagee shall become a lien on the property that relates back to the date of the mortgage. The mortgage should state that the payment of attorneys' fees and costs for enforcing the mortgage, including foreclosure, are also added to the principal. These advances are superior to any subsequent encumbrances as they also relate back to the date of the mortgage.

SECURING ADDITIONAL ADVANCES TO PROTECT THE COLLATERAL, INCLUDING PAYMENT OF TAXES AND INSURANCE

TRUSTEE UNDER DEED OF TRUST: N/A.

TRUSTEE UNDER DEED OF TRUST N/A.

Nonjudicial foreclosure is not available in Wisconsin. The only procedure is judicial foreclosure set forth in Chapter 846. The summons and complaint must name the mortgagor (and owner if other than the mortgagor) and all holders of mortgages, liens, judgments, tenants, occupants, or other encumbrances that are subsequent to the mortgage plus the spouse if the property may be marital property. The summons and complaint are filed with the Clerk of Circuit Court of the county in which at least a portion of the real estate is located and a lis pendens is filed in the Register of Deeds office. Thereafter, all defendants must be served personally, by substituted service or by publication. The defendants (other than defendants who are the state or an officer, agent, or employee of the state and who get 45&nbsp;days) have 20 days to answer or otherwise plead and thereafter, assuming no answer, the plaintiff mortgagee may move for judgment of foreclosure. The judgment adjudicates the amount due, sets the period of redemption, and rules on the priority of the mortgage. Notice of the Sheriff's sale must be published once a week for 3 weeks in a local newspaper and a notice must be posted in 3 places where the property is located where it is to be sold; and on the applicable County website. The sale can be set for a date immediately after the expiration of the period of redemption and the publishing and posting can occur during the last 2 months of the redemption. Third party bidders must meet the qualifications set forth in Wis. Stat. &sect;&nbsp;846.155(2) prior to submitting a bid. Following a successful bid and prior to the confirmation of sale, such third-party bidder must file an affidavit with the clerk of court affirming such qualifications which complies with Wis. Stat. &sect;&nbsp;846.155(5). Thereafter, a 5-day notice of motion for confirmation of the sale is sent to all defendants and upon confirmation by the Court, the Sheriff's deed is delivered to the successful bidder.

BRIEF DESCRIPTION OF PROCEDURE

Assuming no difficulties in serving defendants and no answer by any defendant, filing to judgment should be about 6 to 8 weeks. The redemption period follows the judgment and continues until the foreclosure sale (&sect;&nbsp;846.13), which depending on the type of foreclosure can be from 5 weeks to 1 year. Noticing and scheduling the sheriff's sale and the confirmation of the sale typically takes an additional 6 to 8 weeks.

TYPICAL LENGTH OF PROCEDURE

Wis. Stat. &sect;&nbsp;846.16(2m)(ae) provides that if the premises sells for less than the total indebtedness there shall be no presumption that the premises sold for its “fair value” and there shall be no judgment for deficiency until the Court is satisfied that the “fair value” has been credited to the debt. A presumption exists that the bid represents fair value if no deficiency is sought. If the plaintiff is the successful bidder, no down payment is required at sale. Third parties are typically required to pay 10% of their bid in cash or certified funds, with the remainder due within 10 days of confirmation of sale.

FORECLOSURE BID REQUIREMENTS

1-4-family owner-occupied residence, farm, church or tax-exempt nonprofit charitable organization: (a) with deficiency judgment if the mortgage was entered into prior to April 27, 2016, 12 months; (b) with deficiency judgment if the mortgage was entered into on or after April 27, 2016, 6 months, and, 8 months upon motion by the mortgagor if the mortgagor is attempting in good faith to sell the mortgaged premises and has entered into a listing agreement with a Wisconsin-licensed real estate broker; (c) without deficiency judgment if the mortgage was entered into prior to April 27, 2016 and agreement in writing by mortgagor, 6 months; and (d) without deficiency judgment if the mortgage was entered into on or after April 27, 2016 and agreement in writing by mortgagor, 3 months, and, 5 months upon motion by the mortgagor if the mortgagor is attempting in good faith to sell the mortgaged premises and has entered into a listing agreement with a Wisconsin-licensed real estate broker. Property other than 1-4-family owner-occupied residence, church, farm, or tax-exempt non-profitable charitable organization: 6 months with deficiency judgment; 3 months without deficiency judgment. Abandoned property as defined in Wis. Stat. &sect;&nbsp;846.102: 5 weeks with or without deficiency judgment. The Wisconsin Supreme Court has recently held that, when a court determines that a property is abandoned, Wis. Stat. &sect; 846.102 authorizes the court to order a mortgagee to bring the property to sale within a reasonable time after the redemption period. Bank of New York Mellon v. Carson, 859 N.W.2d 422 (Wis. 2015). Several appellate cases indicate that redemption is actually available after Sheriff's sale up to the confirmation of the sale. The redemption price is the total amount due pursuant to the foreclosure judgment, interest thereon, and costs and any fees subsequent to such judgment, and any taxes paid by the plaintiff subsequent to judgment with interest thereon, payable to the clerk or to the plaintiff or assignee of the plaintiff. A junior lien holder may pay to the clerk or the plaintiff or assignee of the plaintiff the amount of the judgment, taxes, interest and costs and costs subsequent to such judgment and thereafter be subrogated to the rights of the plaintiff. Wis. Stats. &sect;&sect;&nbsp;846.13; 846.15. Under Wis. Stat. &sect;&nbsp;846.14, a distinct parcel or lot may be redeemed by payment of a proportionate amount of the foreclosure judgment (including costs).

REDEMPTION PERIOD AND PRICE

Wis. Stat. &sect;&nbsp;846.10(2) provides that all parties may consent to an earlier sale. In practice, the mortgagors could stipulate that they have abandoned the premises pursuant to Section 846.102, which provides for a 5-week period of redemption, which 5 weeks is necessary, in any event, for the required posting and publishing of the notice of Sheriff's sale.

WAIVER OF REDEMPTION; REDUCTION OF REDEMPTION PERIOD

Pursuant to Wis. Stat. &sect;&nbsp;846.16(2m), the deficiency judgment is rendered when the Court, at confirmation, is satisfied that the premises sold for “fair value.” The amount of the indebtedness in excess of the “fair value” bid would be the amount of the deficiency judgment, which judgment would be docketed and be a lien on all of the mortgagor's real estate in that county for 10 years like any other money judgment.

DEFICIENCIES

Pursuant to Wis. Stat. &sect;&nbsp;708.02, if the lease was entered into subsequent to the mortgage, and the tenant is joined as a defendant, the lease and the tenant's rights will terminate upon confirmation of the Sheriff's sale. If the lease was entered into prior to the recording of the mortgage, the tenant may continue to occupy the property and the lease continues unless there is an overriding enforceable subordination agreement with the tenant and the tenant is joined as a defendant.

EFFECT OF FORECLOSURE UPON LEASES

There is currently no maximum rate limitation applicable to real estate loans in Wisconsin for any loan entered into after November 1, 1981. (Wis. Stats. &sect;&sect;&nbsp;138.052(11); 138.05(8)(c)) In certain loans to individuals, all lenders charging interest in excess of 18% per annum must be licensed under Wis. Stat. &sect;&nbsp;138.09 (except for banks, savings banks, savings and loan associations, credit unions and licensed payday lenders).

USURY CEILING

USURY EXEMPTIONS

Wisconsin has opted out of the federal preemption of state usury laws. The override provision is set forth in 1981 Wis. Laws 571.

FEDERAL PREEMPTION OPT-OUT

(Wis. Stat. &sect;&nbsp;409.501): For as-extracted collateral or timber to be cut and for fixture filings, file in the office where a mortgage on the related real property would be filed or recorded. In all other cases, file in the office of the Department of Financial Institutions. Wisconsin adopted revised Article 9 of the Uniform Commercial Code, effective on July 1, 2001, and changed the locations for filing financing statements. There is no deviation from the official version in the state's treatment of fixtures. Any filings that do not comply with the 2001 requirements are no longer effective as of July 1, 2006. Wis. Stat. &sect;&nbsp;409.705.

LOCATIONS FOR FILING

A mortgage may serve as a financing statement filed as a fixture filing if: the mortgage indicates the goods that it covers; the goods are or are to become fixtures related to the real property described in the mortgage; the mortgage is duly recorded; and the mortgage complies with the requirements for a financing statement other than a recital that it is to be filed in the real property records (i.e., gives names of debtor and secured party; indicates the collateral covered; states that it covers fixtures; provides a description of the real property to which the collateral is related; if the debtor does not have an interest of record in the real property, provide the name of a record owner). Wis. Stat. &sect;&nbsp;409.502.

SECURITY INSTRUMENT AS FIXTURE FILING

Guaranties by individuals are subject to the provisions of the Wisconsin Marital Property Act (the “Act”). Wisconsin Chapter 766. Therefore, each guaranty signed by a married individual to whom the Act applies should include a separate statement, signed by the individual prior to or contemporaneously with the guaranty, stating that the obligation of the guaranty is or will be incurred in the interest of the marriage or the family of the guarantor (generally referred to as a Marital Purpose Statement). This statement should also be included in a note. Such statements are conclusive evidence under the Act that the guaranty obligation is an obligation in the interest of the marriage or family, in which case all marital property is available to satisfy the debt. Wis. Stat. &sect;&nbsp;766.55. Lender's also frequently request a spouse of a guarantor to sign a spousal consent to the guaranty, which does not make the spouse liable on the guaranty but eliminates potential “gift” issues under Wis. Stat &sect;766.53 and &sect;766.70(6).

UNUSUAL PROVISIONS OR REQUIREMENTS

While no statutes need be waived, common law defenses to enforcement of guaranties (e.g., notice of disposition of collateral) should be waived.

Case law exists holding that guaranties provided after the guaranteed obligation arises fail for lack of consideration; there is an absence of case law to support the enforceability of “upstream” corporate guaranties; the Wisconsin Marital Property Act governs availability of marital property to satisfy debt.

SPECIAL PROBLEMS IN ENFORCEMENT OF GUARANTY

A lender who elects a shortened redemption period by waiving its right to seek a deficiency judgment against parties personally liable on the underlying mortgage debt may nonetheless obtain a judgment against a guarantor of the debt. Bank Mutual v. S. J. Boyer Construction, Inc., 326 Wis.2d 521, 785 N.W.2d 462 (2010).

ISSUES RELATING TO DEFICIENCY JUDGMENTS

Wis. Stat. &sect;&nbsp;893.33 concerning actions involving real estate provides for a 30-year period during which actions affecting real estate may be brought. Actions to enforce easements or covenants (excluding certain conservation easements and covenants) must be brought within 40 years after the date of recording of such instruments as the same may be extended for 40 years upon the recording of an instrument expressly referencing such easement, covenant or notice. Wis. Stat. &sect;&nbsp;893.33 and see, also, note following &sect; 700.40.

STATUTE OF LIMITATION PERIOD

Lender must submit for recording a satisfaction within 30 days of the borrower's full performance or payment of the obligations secured by real property. Wis. Stat. &sect;&nbsp;708.15(5). A lender may be liable for fines and actual expenses (including reasonable attorneys' fees) if it fails to release a paid-off lien within 30 days; however, no liability will be imposed if the lender has a procedure in place intended to comply with this requirement, the procedure was followed by the lender, and the lien was not released for reasons outside the lender's control. Wis. Stat. &sect;&nbsp;708.15(7). In advance of a pending repayment, a borrower or its agent may request a payoff statement. Wis. Stat. &sect;&nbsp;708.15(3)(a). For residential property, the payoff statement must be sent to borrower or its agent within 7 business days; for non-residential property, the payoff statement must be sent to the borrower or its agent within a reasonable longer amount of time. Wis. Stat. &sect;&nbsp;708.15(3)(c). The payoff statement must include, inter alia, a per diem and cutoff time by which payments must be received and any limitation as to the method of payment. Wis. Stat. &sect;&nbsp;708.15(3)(d).

REQUIREMENTS FOR RELEASE OF LIEN; PAYOFF STATEMENTS

Real estate constituting the homestead of an individual debtor may serve as security for the debtor's obligations. Unless the mortgage is a purchase money mortgage, it must be joined in by the debtor and the debtor's spouse if the debtor is married. Wis. Stat. &sect;&nbsp;706.02(1)(f). If a defendant answers a foreclosure complaint with a claim that the property is part homestead and part non-homestead property, the non-homestead property must be sold first. Wis. Stat. &sect;&nbsp;846.11.

HOMESTEAD ISSUES

Wisconsin Marital Property Act (Wis. Stats. Ch. 766) applies to transactions with married persons. A statement in the loan agreement or promissory note to the effect that the obligation is or will be incurred in the interest of the marriage and family of the obligor is conclusive evidence that the obligation is in the interest of the marriage or family, and, as a result, all marital property is available to satisfy the debt. Wis. Stat. &sect;&nbsp;766.55. It is advisable and permissible in a foreclosure action to name the obligor's spouse as a defendant, particularly if the lender has a right to collect the debt from all marital property and intends to enforce that right through a judgment on the note, any applicable guaranty, or a deficiency judgment.

COMMUNITY PROPERTY

MORTGAGE TAX

DOCUMENTARY STAMP TAX

30&cent; per $100 of real estate value, which must be rounded up to the next even $100. Wis. Stat. &sect;&nbsp;77.22. On Foreclosure Sale: Wis. Stat. &sect; 77.25(14) provides that on a foreclosure sale the Sheriff's Deed to the person holding the mortgage is exempt from the transfer fee. There is no exemption for a person other than the mortgage holder. On Deed in Lieu of Foreclosure: Wis. Stat. 77.25(14) provides that a deed in lieu of foreclosure to a person holding a mortgage is exempt from the transfer fee.

TRANSFER TAX

Wisconsin foreclosure law applies to real estate located in the State regardless of any contrary agreement in the mortgage documents. Wisconsin courts generally will enforce a choice of law provision in a contract, unless application of the choice of law provision would have the effect of overriding the fundamental public policy of the state whose law would be applicable absent the choice of law provision. For instance, the Wisconsin Consumer Act expressly invalidates choice of law clauses in transactions subject to the Act that specify that the law of another state applies. Wis. Stat. &sect;&nbsp;421.201(10)(a).

ENFORCEABILITY OF AGREEMENT OF BORROWER AND LENDER AS TO CHOICE OF LAW PROVISIONS

The basis of the appointment of a receiver can be by contract, by statute (Wis. Stat. &sect;&nbsp;813.16 and other statutes in specific circumstances), or by case law, which provides that a receiver may be appointed if waste is being committed, which includes lack of repair or maintenance, failure to pay insurance, failure to pay real estate taxes or special assessments, or failure to pay interest on the mortgage debt. Generally, a receiver is not available if the lender has elected to waive the right to a deficiency judgment as such waiver under Wis. Sat. &sect;&sect;&nbsp;846.101 and 846.103(2) includes the consent by the plaintiff that the mortgagor may remain in possession and be entitled to all the rents and profits until confirmation of a foreclosure sale.

RECEIVER AVAILABLE

There are no prohibitions or special rules for business loans as long as practice does not give rise to a claim under general law of lender liability. Wisconsin has a mortgage banker law/mortgage broker law that requires registration and contains a variety of substantive limitations and restrictions on lenders that solicit or service residential real estate secured loans, but it does not apply to banks, trust companies, savings banks, savings and loan associations, insurance companies, credit unions or attorneys acting incidentally to the general practice of law. See Wis. Stat. &sect;&nbsp;224.72. There are special provisions governing credit applications for certain loans to individuals as follows: (a) notice of adverse action must include written statement of reasons for the action (safe harbor for notices complying with 15 USC 1601 to 1693r and regulations adopted under such federal statute); and (b)&nbsp;acceptance of application fee must be preceded by delivery of a written statement to the applicant stating whether fee is refundable, and whether and to what extent terms of loan are fixed through date of closing. Wis. Stat. &sect;&nbsp;138.052(7e).

ANY PROHIBITION OR SPECIAL RULES REGARDING LOAN APPLICATION, LOAN FEES OR COMMITMENT FEES

A security interest in a manufactured home is perfected by delivering to the Department of Safety and Professional Services the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. Wis. Stat. &sect;&nbsp;101.9213(2). Wisconsin's definition of “manufactured home” encompasses both a permanently attached structure (subject to particular specifications) and a mobile home. Wis. Stat. &sect;&nbsp;101.91(2).

PERFECTION OF A SECURITY INTEREST IN A MANUFACTURED HOME

There are no unusual provisions or requirements for modifications of existing mortgage loans. All parties to the loan transaction (i.e., borrowers, guarantors, etc.) should be parties to the loan modification.

MODIFICATION

Pursuant to Wis. Stat. &sect;&nbsp;708.11, an assignment of leases and rents is enforceable against the borrower upon its execution and delivery, and is perfected by recording, with priority based on the time and order of recording. The assignment can be enforced after a default regardless of whether a receiver has been appointed.

ASSIGNMENT OF RENTS, LEASES AND PROFITS

The Wisconsin Department of Natural Resources (“WDNR”) is entitled to a lien on property for expenses that it incurs in investigating, analyzing and ranking sites or facilities, performing remedial action, implementing the Federal Superfund Act or cleaning up abandoned containers. Wis. Stat. &sect;&sect;&nbsp;292.11(13), 292.31 and 292.81. The WDNR provides notice to the property owner and mortgagee(s) of record prior to incurring any such costs, although such notice is not a prerequisite to the WDNR's lien. Wis. Stat. &sect;&nbsp;292.81(2). The WDNR provides notice of its intent to file a lien to the property owner at least 60 days prior to the filing of the lien. Wis.&nbsp;Stat. &sect;&nbsp;292.81(4). The lien is filed in the office of the Register of Deeds of the county in which the property is located. Wis. Stat. &sect;&nbsp;292.81(3). Such lien is superior to all other liens that are or have been filed against the property unless the property is residential property. Wis. Stat. &sect;&nbsp;292.81(3).

ENVIRONMENTAL LIEN LAWS

Wisconsin does not have a local bar opinion report articulating standard accepted opinion practices.

LEGAL OPINIONS

<ol start="779">
 <li> INCEPTION OF L&M LIEN (Priority of Lien of Mortgage): Pursuant to Wis. Stat. &sect;&nbsp;779.01(4), a construction lien has priority over any lien that originates after the visible commencement of the work of improvement, except as otherwise provided in Wis. Stat &sect;&sect;&nbsp;215.21(4)(a), 292.31(8)(i), 292.81 and 706.11(1) and (1m). A construction lien also has priority over any unrecorded mortgage given prior to the visible commencement of the work of improvement if the lien claimant has no actual knowledge of the mortgage before the commencement. Pursuant to &sect;&nbsp;706.11(1), a duly recorded mortgage executed to a federal savings and loan association, state or federal savings bank, the department of veterans affairs, the United States, the State of Wisconsin, any county, city, village, town, agency, or other subunit thereof in the State of Wisconsin, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Housing and Economic Development Authority, a state or national bank, a state or federally chartered credit union, a mortgage banker, an insurer licensed in the State, another State-licensed lender, or a chartered member of the federal farm credit system has priority over intervening construction liens. In addition, pursuant to Wis. Stat. &sect;&nbsp;706.11(1m)(b)3, a construction mortgage has priority over an intervening construction lien if the construction mortgage clearly states on the first page of the mortgage that it is a construction mortgage and the advance is made to enable completion of the contemplated improvement on the mortgaged premises.</li>
 <li> PRIORITY AS TO REMOVABLE FIXTURES (Priority of Lien of Mortgage): Wisconsin does not recognize “removable fixtures.” A person who perfects a construction lien pursuant to Chapter 779 has a lien on “all interests in the land belonging to its owners,” which includes fixtures. However, a duly recorded mortgage that includes fixtures may serve as a fixture financing statement and will retain priority over intervening construction liens if the mortgage is executed to a federal savings and loan association, state or federal savings bank, the department of veterans affairs, the United States, the State of Wisconsin, any county, city, village, town, agency, or other subunit thereof in the State of Wisconsin, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Housing and Economic Development Authority, a state or national bank, a state or federally chartered credit union, a mortgage banker, an insurer licensed in the State of Wisconsin, another State-licensed lender, or a chartered member of the federal farm credit system. A security interest in trade fixtures is subordinate to a construction mortgage recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. Wis. Stat. &sect;&nbsp;409.334(8).</li>
</ol>

LABOR AND MATERIAL LIEN CLAIMS—PRIORITY ISSUES

The ALTA 2006 form is in general use in Wisconsin.

FORM USUALLY REQUIRED BY LENDER

There are many endorsements available, and title insurers will fashion endorsements for specific situations. ALTA endorsements are most commonly used and are available from most underwriters in Wisconsin. &nbsp; &nbsp;

Wisconsin

Mortgage Law Summary

Continue reading the
Mortgage Law Summary for Wisconsin

Wisconsin

Mortgage Law Summary

Continue reading theMortgage Law Summary for Wisconsin

Continue reading the
Mortgage Law Summary for Wisconsin