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Further Simplifying Foreclosures

Foreclosures can be a messy process for all involved—from the homeowner that loses their home, to the servicers that eventually take care of the property—it is anything but a pleasant experience. In addition, the entire process can be complicated by a slew of paperwork, payments, and transfers with many moving parts that are easy to miss.

But, according to The Journal Times, one county in Wisconsin is making a small change to its foreclosure procedure that could go a long way in ensuring smooth transitions of title, one that the rest of the country could possibly benefit from if it goes as planned.

The proposed change is as simple as removing a middle-man, the article notes. In Racine County, as of now, when a foreclosure is sold through the sheriff’s office the buyer receives a copy of the deed and is required to take that deed down to the Register of the Deed’s office to get it filed.

However, this little step is often overlooked, according to the Racine County Register of Deeds, which can cause big problems for borrowers and the state, since the tax bill will continue to be sent to the old owner to never be paid. This can lead to further complications, like tax interception.

The proposed bill, Senate Bill 175, would allow the Clerk of Courts Office to simply take the deed directly to the Register of Deeds Office, and eliminate the middle man, who has little incentive to make sure the task gets accomplished.

Currently, this practice has been implemented in Milwaukee County, but if passed would become state-wide practice.

Critical and constant examination of foreclosure requirements and best practices are vital to streamlining and simplifying the industry, and taking a look at what certain states and municipalities are doing is just one of the many ways for the industry to stay ahead of the curve.

About Author: Joey Pizzolato

Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected].
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