Hello and thank you for allowing me the opportunity to assist you.
Question: “If I have to foreclose on it because of the economy will I have to pay the difference between what I owe and what the bank sells it for? Also how long before I have to move out once I foreclose?”
Answer: Unfortunately, Wisconsin law does allow a lender to sue a debtor for a deficiency judgment (i.e. the difference between what you owe and the market value of the house when it’s sold). The foreclosure process itself will take between 6 months and a year depending on whether the lender seeks a deficiency judgment against you (if it does, then it takes longer…if it doesn’t, then its faster). However, even if the house sells, theoretically you do not have to move until you are evicted (which could take another month or two). Therefore, you probably have to move between 7 and 14 months after allowing the house to be foreclosed upon.
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Unfortunately, I can't say what Wells Fargo typically does. But I will say that if the Wells Fargo doesn't think you can reasonably pay the deficiency (i.e. by looking at your income and assets), then it probably won't bother obtaining a deficiency judgment against you since it will only add to the time it takes to foreclose, as well as add to its own legal bills…and if you can’t pay, then it just wasted time and money.
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