What is a deed of trust in a foreclosure?

In Wisconsin, a deed of trust is an instrument used in a foreclosure that creates a security interest in real estate to secure repayment of a debt. It is essentially a contract between a lender and a borrower wherein the borrower pledges the property as collateral for a loan. The lender holds legal title to the property until the loan is repaid. In the event that the borrower defaults on the loan, the lender can initiate a foreclosure action, meaning the property can be seized and sold in order to recover its debt. In a foreclosure, the deed of trust contains provisions that allow the lender to repossess the property if the loan is not paid. In these cases, the lender may invoke one of three methods of foreclosure: judicial, statutory, or non-judicial. In a judicial foreclosure, the lender must establish a case in court to repossess the property. However, in a statutory or non-judicial foreclosure, the lender can take back the property without first having to go to civil court. In all three types of foreclosure, once the deed of trust is in place, the lender has the right to proceed with the foreclosure. The deed of trust gives the lender the legal authority to take ownership of the property if the borrower fails to repay the loan. If the lender is successful in the foreclosure, the deed of trust will be revoked, and the borrower will no longer have any rights to the property.

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What is a deed of trust in a foreclosure?

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