Horizon Bank, National Ass’n v. Marshalls Point Retreat LLCAnnotate this Case
Wis. Stat. 846.165 does not require a circuit court to make a determination of a guaranty credit at the time a foreclosure sale is confirmed. Further, when an action for foreclosure against a mortgagor and an action for a money judgment on a guaranty are brought in the same proceeding, the circuit court may decide the amount of a credit to be applied to a judgment on a guaranty either at the time the sale is confirmed or at another time.
Petitioner sought review of the court of appeals' decision directing that the circuit court apply a credit of $2.25 million to a money judgment entered against Petitioner as a guarantor of a loan. Petitioner argued that the court of appeals erroneously limited the credit to the amount of the winning bid at the sheriff’s sale, thus precluding the circuit court from hearing evidence of the fair value of the property after the confirmation of sale. The Supreme Court reversed, holding (1) the circuit court properly decoupled the confirmation of sale from the determination of the guaranty credit; and (2) the stipulation in this case did not establish that the amount of the winning bid at the sheriff’s sale shall be the sole credit toward the money judgment against Petitioner.