The mortgage laws in Wisconsin state are governed by Mortgages and Land Contracts of the Wisconsin statutes, RESPA, and Consumer Disclosure Agreement.

Wisconsin Statutes:

Mortgage laws are clearly stated in the Wisconsin statutes under the title 'Mortgages and Land Contracts'.

• As per the statute, if you choose to avail a mortgage then it will create a lien on the property to be mortgaged. The mortgagor retains the interest in the property until that interest is diluted by some other acts.
  
  
• As per section 224.79(2) the lender is bound to provide you a Consumer Disclosure Statement which states the nature of service that the lender is going to provide you and how he will be compensated from it. Generally the compensation of the lender includes your interest rate, total points, and fees.
  
  
• As per section 224.79(1), you are required to sign a Mortgage Broker Agreement along with the lender. This agreement is required in addition to the RESPA and Truth-In-Lending disclosure.
  
  
• If the property with the lien is leased to another person after the lien is placed, then the lease agreement should be terminated when the interest of the lienor is terminated. This is generally known as foreclosure effect on the lease taken.
  
  

Case Study:

We shall discuss here a case having number 02-2085 that was held on 3rd November, 2003 between Dan Bregant and the Bankers Trust Company of California. The case was carried out at the Wisconsin State of Appeals First District in the presence of judge Wedemeyer. The attorneys of the plaintiff and the defendant are not known.

Dan Bregant took a mortgage from the Bankers Trust Company to purchase a condominium at Woodlands in the state of Wisconsin. The mortgage was recorded in the office of the register of deeds on 17th April, 1997. At that time, the bylaws of Woodlands did not state that its units should be owner-occupied. But an amendment of these laws brought into effect from 1st May, 2001 required that sale of such units should be restricted to those who would reside in the property. As a result on 29th June, 2001 the Bankers Trust Company filed a foreclosure action against Dan Bregant and Woodlands was joined as a defendant because of its lien and interest in the condominium unit.

The court granted the Bankers Trust Company a judgment which empowered them to sell the unit. But Woodlands objected on the ground that as per the ''Ownership Limitations of Use'' clause in the bylaws it was not possible to sell units at Woodlands to anyone who would not stay there. After a hearing on the objection, the trial court confirmed the foreclosure. The matter is now under sub-judice.