Jefferson County, Wisconsin Real Estate Tax Foreclosure Policy

Jefferson County, Wisconsin

Real Estate Tax Foreclosure Policy

Definition

The legal process by which ownership interest in real property is terminated due to

delinquent property tax payments. This process typically results in the sale of the property

by competitive bidding, public auction or other methods allowed by law which are

determined to be in the best interests of the County, with the proceeds being applied to the

delinquent property taxes and interest.

Policy

This policy provides guidance to Administration and staff on dealing with the various issues

related to tax foreclosures, such as setting minimum bids, allowing the repurchase of land by

former owners and the eviction process.

Procedure

The Treasurer will send out a letter to the property owner that the County is starting the

process of foreclosing on the property.

The first step in the foreclosure process is to establish a list of properties that meet the

criteria for foreclosure. Properties are able to be foreclosed on after 2 years of being tax

delinquent. For example, if the Treasurer issues a tax certificate for the 2016 delinquent

taxes on September 1, 2017, then delinquent taxes from 2014 or earlier would be subject to

a tax foreclosure action. (s. 75.20, Wis. Stats.) (Tax certificates shall be void 11 years

following December 31

of the year in which such certificates were dated.) (s. 75.521 (3)(a)4,

Wis. Stats.)

Administration will determine if there are any properties that should not be foreclosed on.

For example, if the property owner is making payments that are greater than the amount of

delinquent taxes and interest each year, a decision not to commence a foreclosure action on

that property may be appropriate.

Administration will send a listing to the municipalities where the properties are located

informing them that the County is starting the foreclosure process and requesting that they

inform the county of any issues with the property. (i.e. zoning issues, environmental issues,

bankruptcy etc.)

Administration will send a listing of the properties to the title company to conduct a title

search.

Administration will conduct a search to determine if any properties are the subject of a

bankruptcy petition. If any property is the subject of a bankruptcy petition, the county is

stayed from proceeding on the foreclosure until the bankruptcy petition is dismissed or the

property owner is granted a discharge.

Commencement of Legal Action Pursuant to § 75.521, Wis. Stats.:

After the title search is completed and the title letters are received from the title company, a

petition, notice and list of delinquent tax parcels is drafted and filed with the Clerk of Courts.

These 3 documents are published as a class 3 notice in the County’s official newspaper and

are sent out by certified mail with return receipt requested to property owners and all lien

holders.

The property owner has eight weeks from the first publication of the notice to redeem the

property by paying the delinquent taxes and interest for the delinquent tax years. If full

payment is received, a redemption certificate is filed with the Clerk of Courts.

After the redemption date has expired, any person having any right, title or interest in or lien

upon the property may serve an answer (such as disputing the foreclosure) to the Treasurer,

which has to be filed with the Clerk of Courts within 30 days.

If there is an answer, Corporation Counsel will appear in court and represent the County’s

interests.

If there is no answer, an affidavit of default and judgement are filed with the Clerk of Courts,

recorded with the Register of Deeds and sent to the Finance Director for sending notice to

municipal clerks informing them of the tax exempt status of the properties.

On a foreclosed property, notices will be sent out to the occupants for payment of rent to be

sent to the County in the future. A determination will need to be made on how much rent

should be paid. Anyone living on the property when the county takes title will be given a 5

day notice to pay rent and expenses (gas, water, sewer etc.) and enter into a month to month

rental agreement to continue to pay rent and expenses, as well as to perform general

maintenance on the property (snow removal, lawn care, etc.) or vacate the premises. If the

tenants agree to pay rent and continue to reside on the property, the property will be

advertised as tenant occupied and inform prospective purchasers they could have a rental

unit with tenants, or upon request of the prospective purchaser, the county will commence

eviction proceedings.

If requested by the former property owner, the Finance Committee may allow the repurchase

of the foreclosed property by the former property owner by payment of (1) all delinquent

taxes together with interest thereon to the date of payment; (2) specific costs attributable to

the property including special assessments, interest and foreclosure costs; and (3) an

additional sum equal to 125 percent of the foregoing year’s taxes. (Ordinance 2002-12).

The Finance Committee may offer sale of the land to the municipality where the foreclosed

property is located, at the cost of the delinquent taxes and interest. If any property is sold to

the municipality, it shall be approved by County Board action. Notice may be given to any

other state and local agencies that may be interested in the property.

Notice of Sealed Bids

All bids must be submitted on the form titled, “Sealed Bid for Purchase of Tax Delinquent

Property” and must be submitted in a specific dollar amount.

All payment must be by certified check, cashier’s check, treasurer’s check or by a U.S. postal

money order (no cash).

Round: Administration will place the property for sale by publication of a Class 3 notice

under Chapter 985 Wis. Stats.(Wis. Stat. s. 75.69) at a minimum bid of the property’s

appraised value which the Finance Committee has determined will be equal to the estimated

fair market value of the property as indicated in the official property record maintained by

the Jefferson County Treasurer unless a different amount is designated by the Finance

Committee. (Resolution No. 2002-16).

Round: If the property does not sell at a minimum bid of the appraised value,

administration will place the property for sale at a minimum bid of the total delinquent taxes

and interest for no less than 20 days which will include publication of a Class 1 notice under

Chapter 985 Wis. Stats. (Wis. Stat. s. 75.69). If the minimum bid is less than the appraised

value, the Finance Committee must approve the sale. (Wis. Stat. s. 75.69)

Round: If the property does not sell at the minimum of the total delinquent taxes and

interest, administration will place the property for sale at a minimum bid of the total

delinquent taxes for no less than 20 days using any method of advertising deemed

appropriate for that particular parcel of property. Administration will determine how best

to dispose of the property after consulting with the Finance Committee.

Round: If the property does not sell for an amount equal to or greater than the delinquent

taxes, administration will determine how best to dispose of the property after consulting

with the Finance Committee.

Administration has the authority to accept bids following the guidelines in this policy.

If due to the condition of the property or other circumstances affecting property value,

receiving a minimum bid equal to or greater than the established fair market value is

unlikely, the Finance Committee may determine the appraised value using such other

information as the Committee has available. (Resolution No. 2002-16).

Exceptions to this policy may be made on a case by case basis by the Finance Committee

provided that any exception is in compliance with Wisconsin Law.

Methods of selling and advertising tax delinquent properties shall be as required by state

law. Other methods of selling and advertising tax delinquent properties shall be at the

discretion of Administration which may include, but are not limited to, placing a “For Sale”

sign on the property, notifying adjoining landowners that the property is for sale, listing on

the Wisconsin Surplus website and using the services of a real estate agent.

Jefferson County reserves the right to reject any bid or refuse to sell any tax delinquent parcel

of property to anyone who has delinquent real estate taxes owing to Jefferson County or who

has any ownership interest in a company or corporation that has delinquent real estate taxes

owing to Jefferson County.

The below Procedure for Foreclosing and Selling Tax Delinquent Properties may be used as a

guide for County staff for the disposition of tax foreclosure properties.

Administration

This policy is for use in guiding financing decisions of the County, and can be interpreted by

the Finance Committee as part of overall discussions related to foreclosed properties. It is

administered by the Finance Committee in conjunction with the County’s other fiscal

policies. It may be amended or revised from time to time as determined by the Finance

Committee.

Procedure for Foreclosing and Selling Tax Delinquent Properties

Dates listed below are approximate and used for example only

1) The Treasurer will send out a letter to the property owners notifying them that the

County is starting the process of foreclosing on their property and will forward a list

of tax foreclosure properties to the Corporation Counsel Office and request that

foreclosure proceedings commence – August 15

2) Corporation Counsel Office completes review of properties and makes a

determination on what properties the County should commence a foreclosure action

on – September 1

3) Corporation Counsel Office commences legal action on all properties determined to

be appropriate for tax foreclosure. This requires a Class 3 notice to be published in

the County’s official newspaper with copies sent by certified mail with return

receipt requested to property owners and all lien holders - October 1

4) The Sheriff personally serves owners of occupied properties who have not

responded to the foreclosure action copies of the petition for foreclosure and related

documents and directs them to contact the Corporation Counsel Office – November

5) Property owners have eight weeks from the first publication of the notice to redeem

the property by paying the delinquent taxes and interest for the delinquent tax

years. If full payment is received, a redemption certificate is filed with the Clerk of

Courts and the case is dismissed – redemption period ends on November 26

6) After the redemption period expires, any person having any right, title or interest in

or lien upon the property may serve an answer (such as disputing the foreclosure)

to the Treasurer, which has to be filed with the Clerk of Courts within 30 days – an

answer must be served on the County on or before December 26

7) If no answer is received, the County submits a default judgment to the Court and

files with the Clerk of Courts – December 27

8) County notifies all former owners who are living in the foreclosed properties that

they will need to either leave or start paying rent – January 7

9) The property will be published for sale at a minimum bid of the property’s assessed

value for no less than 20 days – February 1

10) If the property does not sell at a minimum bid of the estimated fair market value, the

property will be published for sale at a minimum of the total delinquent taxes and

interest for no less than 20 days – March 1

11) If the property does not sell at the minimum of the total delinquent taxes and

interest, the property will be published for sale at a minimum of the delinquent

taxes for no less than 20 days – April 1

12) If the County has an acceptable bid for the property, the former owners will be

notified that they need to vacate the property – May 1

13) If the former owners have not vacated the property, the Sheriff will serve them with

the notification to vacate and inform them that they have 10 days to vacate the

property – June 1

14) Former owners contact the Corporation Counsel Office stating that they were not

aware of the foreclosure action until they were personally served with the

notification to vacate by the Sheriff – June 2

15) Former owners request the Finance Committee to grant them permission to

repurchase the foreclosed property and the Finance Committee allows 30 to 60 days

to repurchase – June 11

16) Former owner repurchases property – on or before August 11

Policy Approved by the Finance Committee on August 11, 2016, Amended on: August 8, 2018;

November 5, 2020; November 9, 2022.