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The Foreclosure Process in Wyoming. The foreclosure process in Wyoming is well defined. In every state the foreclosure process if different. Watch the video below to find out more. *please note I am not an attorney, I am trained to market at sell real estate!
Hi, I’m Alisha Collins with RE/MAX the Group and the Alisha Collins Real Estate Team. Are you thinking about investing in real estate? You may enjoy this video about financing a rental or flip property and how it works.
Back to how the foreclosure process works in Wyoming. After missing several payments on a residential mortgage; typically, after you are 120 days delinquent without a designated forbearance, a servicer or the lender that owns a mortgage will begin foreclosure proceedings. Most often, the home owner will receive numerous notices by mail. And because of federal mortgaging servicing laws, the lender will make several attempts to contact you by phone to discuss your options for avoiding foreclosure. If you file bankruptcy or ask them not to call you, this could vary.
In Wyoming, the servicer must send a certified letter, notifying the borrower in default of the intent to foreclose at least 10 days prior to publishing the notice to sale. They must also send the borrower and several others, by certified mail, a copy of the notice of sale. Then the notice is published in the local newspaper weekly for four consecutive weeks before the sale takes place on the courthouse steps. The sale mentioned here is literally the sale of the mortgage property to the highest bidder often with a required minimum of course, which is designed to allow the servicer to recoup some or all of their losses. If the property is sold for less than the mortgage payoff amount, the lender may also file for a judgment against the borrower for the difference between the sale price and what is owed. Be aware, foreclosure laws are super complicated. And these laws can change over time. It is always important that you understand your rights. Again, I recommend that you speak with an attorney if you’re in foreclosure. In Wyoming, if you need help finding one or don’t think you can afford one, there is help available. Visit equaljustice.wy.gov for more information.
On the sale date, which are on Thursdays in Casper, but again varies by location, the sale of the property occurs on the courthouse steps. The bank that owns the mortgage usually has somebody that is bidding on their behalf to protect their interest. There are times that a person with cash will outbid the bank and win the auction. Whoever wins the auction does have to wait 120 days to take possession of the residential property, longer if the property is primarily agricultural property. Again, see an attorney. If the borrower redeems the property, the bidder will be paid interest on the loan for that 120 days, which I will get to in a moment. This generally means that the owner of the property can continue to live in the property during the 120 days. And the borrower has the right to redeem the property for the first 90 days after the property is sold on the courthouse steps. The last 30 days is for secondary or junior lien holders. The secondary lien holder may be a lender who gave you a second mortgage such as a downpayment loan for community development agency. Or any lien holder who has a security interest in the property that is secondary to the first mortgage.
Let’s talk about what it means to redeem the loan. Redemption means that the borrower has paid off the loan, the fees, and interest either by getting another loan or by selling the property to a new buyer. In the state of Wyoming, whatever the home sold on the courthouse steps for is the redemption amount. The borrower is more likely to sell the property than redeem it because at this point in the foreclosure process, their credit has been damaged enough that usually a new loan is not an option. Side note here. If this all sounds familiar, and confusing, and is happening to you, I want to help. I can’t even imagine what you’re feeling, but let’s work through it together. After 120 days, the owner of the home is the person or company that bought it after the sale on the courthouse steps. The previous owner or whoever has been living in the home must move out if they haven’t already. In my experience, very often, the previous owner has moved out long before the end of the 120 days. After the redemption period ends, the bank moves forward with cleaning out the house and preparing it for sale if they’re the owner. By the time a new buyer purchases the home, it should be fairly straight forward. As the bank should have a clear title. The new buyer rules receive a title, commitment to view in advance so they can understand any possible title defects. Again, if this sounds familiar to you, I would really love to sit down with you and discuss your options before the point that the bank owns the property. If you are interested in investing in rentals or flip properties, you will love this video about financing options or this one about how I got started with investing in property and becoming a landlord.
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