Property – foreclosure

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Wisconsin Court of Appeals

Civil

Property – foreclosure — equitable assignment

Under the doctrine of equitable assignment, a mortgage automatically transfers upon transfer of the associated note, without need for a written assignment.

“Dow argues the doctrine of equitable assignment cannot apply to real estate mortgages because the statute of frauds requires that every assignment of a real estate mortgage be in writing, signed, and delivered. See WIS. STAT. § 706.02(1). Dow is correct that WIS. STAT. ch. 706 governs every transaction by which any interest in land is mortgaged. See WIS. STAT. § 706.001(1). However, excluded from operation of that chapter are transactions in which an interest in land is affected by act or operation of law. See WIS. STAT. § 706.001(2). As discussed above, the mortgage here was equitably assigned to the holder of the original note by operation of law. Therefore, equitable assignment of the mortgage is not barred by the statute of frauds.”

Affirmed in part and Reversed in part.

Recommended for publication in the official reports.

2013AP221 Dow Family, LLC, v. PHH Mortgage Corp.

Dist. III, Barron County, Babbitt, J., Stark, J.

Attorneys: For Appellant: Thrasher, Joe, Rice Lake; For Respondent: Anderson, Mary Susan, Wausau