Foreclosure – Money Judgment Credit

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WI Court of Appeals – District III

Case Name: Horizon Bank, N.A. v. Marshalls Point Retreat, LLC et al

Case No.: 2016AP832

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Foreclosure – Money Judgment Credit

Horizon Bank, National Association, (Horizon Bank) sued to foreclose a mortgage and enforce a guaranty made by Allen Musikantow. Upon the parties’ stipulation, a foreclosure judgment was entered, along with a money judgment against Musikantow. The foreclosure judgment provided the proceeds of the sale of the subject premises would be credited toward the money judgment. However, the circuit court later refused to determine the amount of the credit, based on a governing law provision in the guaranty that, according to the court, “indicat[ed] … [the guaranty was] to be governed by Federal Law.” We agree with Horizon Bank that the circuit court erred by refusing to determine the amount of the credit and apply that amount to the money judgment against Musikantow. We therefore reverse the order refusing to apply a credit against the money judgment and remand with directions that the court apply a credit of $2,250,000—the amount of the winning bid at the sheriff’s sale.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.