Local WI homeowners who are facing a financial challenge may find themselves in foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Milwaukee that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Milwaukee WI
These foreclosure prevention measures might not all work in your situation but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The most direct way to stop a foreclosure is to bring your mortgage current or pay off the remaining balance. That might sound out of reach — and for many folks, it is — but it’s worth exploring if you have access to retirement savings, family support, or a lump sum from a recent settlement or bonus.
Selling your property is often the next best option, especially if you have equity. Here in Milwaukee, I’ve worked with homeowners who listed their homes through local cash buyers or real estate investors and avoided foreclosure entirely by closing fast. If you go this route, be sure to understand your payoff amount and check with a local title company to make sure the sale covers what you owe. It’s not always an easy decision, but it can give you a clean slate to move forward.
2. Work out a deal with your bank. In Wisconsin, many banks are open to discussing options like loan modifications or forbearance agreements, especially if you’re proactive. I’ve seen homeowners in Milwaukee work directly with their lender or through a HUD-approved housing counselor to adjust their loan terms — sometimes extending the repayment period, reducing the interest rate, or rolling missed payments into the loan balance.
It’s important to keep a paper trail, communicate in writing, and ask about long-term affordability. Be honest about your finances — lenders are more likely to help if they know you’re trying in good faith. You can also contact the Wisconsin Help for Homeowners program for assistance navigating this process (https://homeownerhelp.wi.gov/).
3. Do a short sale. A short sale happens when you sell your home for less than what you owe on the mortgage, and the bank agrees to accept the lower amount as full or partial payoff. It’s not ideal, but it can be better than a full foreclosure — it usually has less impact on your credit and can make it easier to qualify for future loans.
In Milwaukee, short sales can move quickly with the right buyer and agent, but it’s important to know that you’ll need the lender’s approval before closing. I’ve worked with homeowners who teamed up with real estate agents experienced in distressed sales to get a deal done fast. Just be sure to ask your lender if they plan to pursue a deficiency judgment for the remaining balance after the sale. Some lenders forgive the debt — some don’t — so get it in writing.
4. Give your deed in lieu. With a deed-in-lieu, you voluntarily transfer ownership of your home to the bank in exchange for avoiding foreclosure. It’s like saying, “Here, take the house back — let’s call it even.” This might be an option if you’ve exhausted other paths and your home isn’t likely to sell quickly.
But it’s not always that simple. In my experience helping Milwaukee homeowners, lenders typically require that your house isn’t encumbered by other liens, and the home must be in decent condition. Also, like with a short sale, you should ask your lender whether they will waive the deficiency — otherwise, they may still come after you for the unpaid balance.
If you’re exploring this option, talk to a foreclosure defense attorney or housing counselor first to understand how it may affect your credit, taxes, and future housing prospects.
5. File for bankruptcy. IBankruptcy can be a heavy decision, and yes — it affects your credit and financial options across the board. But in some cases, especially when you’re dealing with multiple debts and a foreclosure at the same time, it might be the legal reset you need.
In Wisconsin, filing Chapter 13 bankruptcy may allow you to keep your home by creating a repayment plan for missed mortgage payments over a few years. On the other hand, Chapter 7 might erase other debts but won’t always protect the house. It’s a complicated road, and if you’re considering it, I strongly recommend talking to a local bankruptcy attorney — many offer free consultations and can help you figure out whether it’s the right move for your situation.
The moment you file, the foreclosure process must pause due to an “automatic stay,” giving you some breathing room to make a plan.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you’re ready to move on and put this chapter behind you, selling your home might be the cleanest way forward — especially if you have equity. In Milwaukee’s current housing market, some neighborhoods are seeing solid demand, and a quick sale could allow you to pay off your mortgage and even walk away with a bit of money in your pocket.
I’ve seen homeowners avoid foreclosure by working with local cash buyers or investors who can close within days. Just be sure to check their reputation, ask for proof of funds, and involve a local title company or attorney to protect your interests. Even in a tough spot, you still have options — and you deserve to work with someone who treats you with respect.
Considering selling your WI house?
We buy houses in WI for cash and would love to see if we can help you during your short sale. Contact us by filling out the form on this page and we’ll see if we can work with you.