What is a deed-for-lease in a foreclosure?

A deed-for-lease in a foreclosure involves the transfer of title from the foreclosing lender to a third party. The third party takes control of the home and then rents it to the foreclosing homeowner with the goal of avoiding foreclosure. In Wisconsin, foreclosure law requires that deed-for-lease transactions must be done through the court system. The third party, called the “trustee,” is appointed by the court and is responsible for making sure the agreement between the foreclosing homeowner and the lender is properly executed. The trustee also acts as the tenant’s agent and is tasked with collecting the rent and ensuring that the tenant is living up to their end of the agreement. The court must approve any changes to the contract and any adjustments to the rent amount. If the tenant is able to make the required payments and live up to their part of the agreement, the deed-for-lease agreement can be extended. If the tenant fails to make their payments, the third-party trustee can start the foreclosure process.

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What is a deed-for-lease in a foreclosure?

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