Foreclosure

Foreclosure is a legal proceeding to terminate a borrower’s interest in property. It is instituted by the lender either to gain title or to force a sale in order to satisfy the unpaid debt secured by the property.

Yes. Wyoming law recognizes both judicial and nonjudicial foreclosures.

Judicial foreclosure is a costly and time-consuming foreclosure method by which the mortgaged property is sold through a court proceeding. Judicial foreclosure requires many standard legal steps such as the filing of a complaint, service of process, notice, and a hearing. Judicial foreclosure is available in all jurisdictions and is the exclusive or most common method of foreclosure in at least 20 states.

Nonjudicial foreclosure is a foreclosure method that does not require court involvement. Power-of-sale foreclosure is a common type of nonjudicial foreclosure.

Power-of-sale foreclosure is a foreclosure process that operates according to the mortgage instrument and/or state statute. In Wyoming, the power-of-sale foreclosure statutes are labelled foreclosure by advertisement.

A power-of-sale clause is a provision contained in a mortgage instrument that permits a lender to nonjudicially foreclose on a debt in the event of default. A power-of-sale clause in a mortgage instrument is required for nonjudicial foreclosures.

A lender can foreclose whenever a borrower defaults on an obligation contained in the mortgage instrument.

Default occurs whenever a borrower fails to perform any duty required by the mortgage instrument. Generally, default occurs when a borrower fails to make a payment on time.

If a borrower defaults on a mortgage instrument, the lender has the option to foreclose. The manner of foreclosure is determined by the mortgage instrument and state statutes.

Lenders will often send a notice to a borrower if the loan is in default. Usually, a borrower will have a chance to “cure” the default. Generally, a borrower can cure the default by paying any payments that are past due. However, the ability to “cure” is determined by state law and/or the mortgage instrument. In Wyoming, a lender is not statutorily required to give the borrower an opportunity to cure the default.

If a borrower is unable to cure the default, they will likely still have a right of redemption. The manner of redemption may be detailed in the mortgage instrument and/or state statute. In Wyoming, a borrower has the statutory right of redemption for three months from the date of the foreclosure sale. In order to exercise the right of redemption, a borrower must pay the amount of the purchase price from the foreclosure sale, together with interest at the rate of 10% per year from the date of the sale, plus the amount of any other purchaser expenses, with interest.

In Wyoming, a borrower can reside in the foreclosed home for up to 3 months after the foreclosure sale.

A deficiency judgment is a judgment against a borrower for the unpaid balance of the debt if a foreclosure sale fails to yield the full amount of the debt due. Wyoming law allows for deficiency judgments.