Wyoming foreclosure law

Wyoming foreclosures can be done in either a judicial or non-judicial process. This means that a lender can foreclose in or out of court, depending on the mortgage contract. Foreclosure law applies to both mortgages and deeds of trust, and the average wait time is 120 days (approximately four months).

Judicial foreclosure
A Wyoming judicial foreclosure is used when the contract does not include a Power of Sale clause, which would otherwise allow the lender to foreclose directly. Without the clause, the lender has to file a lawsuit and get a court order before foreclosure can begin. If the court rules in favor of the lender, it declares the foreclosure and the home is sold off via public auction.

Non-judicial foreclosure
If the contract contains a Power of Sale, lenders can foreclose in a non-judicial method. The Power of Sale serves as an authorization for the lender to sell the home as payment for the loan if the borrower commits a default. The authority may be extended to the lender’s representative or trustee.

The time, date, and place of sale specified in the mortgage are usually followed throughout the non-judicial foreclosure. If the contract does not include such terms, the following procedures apply:

1) The lender sends a Notice of Sale to the borrower, both by certified mail and regular mail, with a request for a return receipt at least 30 days before the sale date. If the borrower has an attorney of record, the same notice should be sent to him or her via regular mail. The notice should contain the following:

-the date, time and place of the sale
-the names of the deed parties
-the date the deed was signed
-recording information
-a description of the property
-the terms of the sale
-the borrower’s rights of redemption, if any

2) The sheriff publishes the notice in a daily or weekly newspaper circulated in the county where the home is located. The ad appears once a week for at least four consecutive weeks. The sheriff also posts the same ad at the courthouse door, and at least one other public place in the county.

3) The borrower can cure the default and stop foreclosure up to 11 days before the sale. This can be done by paying the delinquent amount, attorney’s fees, trustee’s fees, and other associated costs.

4) The sale takes place at least 190 days after the default is confirmed. The auction is held at the courthouse door on a Friday between 9am and 4pm. If the Friday falls on a legal holiday, the sale will be held on the next regular business day. The winning bidder is then issued a certificate of sale.

Rights of redemption and deficiency claims
In a non-judicial foreclosure, the contract can waive the borrower’s Right of Redemption (the right to regain possession of the home). Otherwise, the redemption period is usually eight months from the date of the sale. This means that borrowers can get their property back within the given period by paying the foreclosure sale price plus interest. This option is not offered in a judicial foreclosure.

Also, lenders who foreclose in a non-judicial manner cannot file deficiency suits, or sue the borrower for any amount not covered by the foreclosure sale. If the judicial process is used, the lender can make a deficiency claim unless the home is abandoned for six months before the decree is issued.

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