How does foreclosure work in Wyoming?

Judicial or non-judicial?

Both exist. A mortgage that contains a power of sale “may be foreclosed by advertisement” within ten years after the debt matures or the mortgage is recorded (§ 34-4-102). That is the non-judicial route. The lender cannot use it if it has a pending lawsuit to collect the same debt, unless the suit was dropped or an execution came back unsatisfied (§ 34-4-103(a)(ii)).

A lender can also sue. When a court forecloses a mortgage, its decree orders the sale and is enough authority for the sheriff to advertise and sell (§ 1-18-111). Which route your lender uses depends on your loan documents. Both routes lead to a public sale with the same four-week advertising rule (§ 1-18-101).

Timeline step by step

A sale can be postponed by publishing a postponement notice in the same newspaper (§ 34-4-109). The notice must say the property may be subject to other liens that survive the sale (§ 34-4-105).

Arithmetic, not a statutory deadline: 10 days of mailed notice plus four weeks of publication adds up to at least about five and a half weeks before a sale. Federal rules add a wait before foreclosure can begin: a servicer “can’t start the foreclosure process until at least 120 days after you become delinquent,” with rare exceptions (CFPB). Together that is roughly five months from first missed payment to sale, then a redemption period on top. Real cases can run longer.

Right of redemption

A former owner can buy the property back after the sale. To redeem within three months, you pay the purchaser the sale price (or the mortgagee’s bid), 10% annual interest from the sale date, and any taxes, assessments or prior-lien payments the purchaser made after the sale (§ 1-18-103(a)). The sheriff then issues a certificate of redemption, and the sale becomes void.

The period is 12 months if the mortgage covered agricultural real estate, meaning a single parcel over 80 acres outside any city, town or recorded subdivision, or property used mainly for farming that adds up to 80 acres or more (§ 1-18-103(b) and (c)).

Staying in the home. The mortgagor or owner is entitled to possession and the rents and profits for three months after the sale (12 months for agricultural property). After that period, the purchaser is entitled to possession (§ 1-18-104(e)). The buyer has only a “limited right of entry” to a home that nobody lives in (§ 1-18-111(b)). After the sale and until the sheriff’s deed is recorded, the foreclosing lender can rescind it, by itself if it was the buyer, or with the purchaser’s agreement if someone else bought (§ 1-18-115).

Surplus and deficiency

Sale proceeds go, in order, to the costs of collection and reasonable attorney’s fees, the debt of the foreclosing mortgage, junior liens, and then surplus proceeds to the former owner on demand (§ 34-4-113(a)). The statute adds that “the mortgagor is liable for any deficiency” (§ 34-4-113(c)). It does not describe a separate deficiency procedure in the text I read, and I did not review court decisions. If you owe more than the sale brought in, ask a Wyoming attorney how that debt can be collected.

Help for homeowners in default

• Contact your servicer early. The CFPB says to make sure your servicer receives a complete application for foreclosure alternatives more than 37 days before the scheduled sale. After that date, federal rules do not necessarily require a review.
• Free counseling. HUD funds free or very low-cost housing counseling nationwide; call (800) 569-4287. You do not need to pay a company for what counselors do for free (HUD).
• WCDA borrowers. If the Wyoming Community Development Authority services your loan, its homeowners page offers mortgage assistance application packets (FHA and non-FHA) and lists the servicing line, 307-265-5102 or 800-273-4635.

Buying a foreclosed home? The sale notice warns that liens may survive, so consider a title search and insurance and an attorney (see real estate attorney). Foreclosure sales are also exempt from the federal lead disclosure rule (see seller disclosure).