Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
Wyoming Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of
Trust, Mortgage
- Timeline: Typically 90 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Wyoming, lenders
may foreclose on deeds of trusts or mortgages in
default using either a judicial or non-judicial
foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves
filing a lawsuit to obtain a court order to
foreclose, is used when no power of sale is present
in the mortgage or deed of trust. Generally, after
the court declares a foreclosure, the property will
be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed
of trust. A "power of sale" clause is the clause in
a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the
balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale
exists, the power given to the lender to sell the
property may be executed by the lender or their
representative, typically referred to as the
trustee. Regulations for this type of foreclosure
process are outlined below in the "Power of Sale
Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a
power of sale clause and specifies the time,
place and terms of sale, then the specified
procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is
carried out as follows:
Written notice of intent to foreclose
the mortgage by advertisement and sale must
be served upon the record owner, and the
person in possession of the mortgaged
premises (if different than the record
owner), by certified mail with return
receipt, at least ten (10) days before the
first publication of notice of sale.
The notice must be published at least once a
week for four (4) consecutive weeks in a
newspaper printed in the county where the
property is located. If there is no
newspaper printed in the county, then the
notice must be published in a paper printed
in the state and of general circulation in
said county.
Said notice must specify the name of the
borrower, the lender and the lender's
representative, the date of the mortgage and
when it was recorded, the amount of the
default, a description of the property and
the time and place of sale.
The sale must be held at the front door
of the courthouse of the county in which the
premises to be sold, or some part of them,
are situated, between the hours of 9:00 am
and 5:00 pm, and must be conducted by the
person appointed for that purpose in the
mortgage or by the sheriff or deputy sheriff
of the county. Anyone may bid, including the
lender. The highest bidder will receive a
certificate of purchase.
Such sale may be postponed from time to time
by inserting a notice as soon as possible in
the newspaper in which the original
advertisement was published and continuing
such publication until the time to which the
sale shall be postponed, at the expense of
the party requesting such postponement.
The borrower has three (3) months from
the date of sale to redeem the property by
paying the amount of the purchase price or
the amount given or bid if purchased by the
execution creditor or by the mortgagee under
a mortgage, together with interest at the
rate of ten percent (10%) from the date of
sale plus the amount of any assessments or
taxes and the amount due on any prior lien
which the purchaser paid after the purchase,
with interest.
Lenders may obtain deficiency judgments in
Wyoming.
