Is a Door County luxury home worth one price in a mortgage foreclosure but far more in terms of credit for a guarantor of the loan?
The Wisconsin Supreme Court on Tuesday ruled in favor of a former Door County man who says it is, and that he should get far more credit than a foreclosed mansion brought at sheriff's auction.
The 6-1 decision reversed the Court of Appeals and went contrary to the strong urging of the Wisconsin Bankers Association.
On Tuesday, WBA president and CEO Rose Oswald Poels said the group was disappointed in the ruling.
"It's strange to think that a fair value for the borrower would be unfair for the guarantor," she said. "It was a public sale, with notice. Normally if there was that much difference, (in value) there’d be other bidders."
She said the resulting uncertainty and potential for litigating multiple values for the same property will be inefficient and could increase the costs of lending.
Read more in the Milwaukee Journal Sentinel.