Property Mortgage Laws in Wyoming:

Wyoming is a title theory state and as per the law of this state the property deeds remains under the trust until full payment is done. Foreclosure as you know is the only non-judicial options for this title theory state. If there is full payment done on the property this is then called as a deed of trust property. This state has allowed mortgages and to recover the payment of the property a judicial foreclosure can take place only with the help of court summons.

There are two ways by which the property can be foreclosed. The first being the involvement of a non-judicial foreclosure, in this method there is no direct or for that matter even indirect involvement of the court orders, nor is any noticed served to the person to recover the loan amount. As this does not involve the court orders this type of foreclosure is known as foreclosure by advertisement. At the onset of buying the property a trust deed is signed up wherein a power of sale clause is put in where the trustees have the right to sell the property in case there is non-repayment of the loan. These trustees are given the power to represent the lender in order to look into the smooth sale of the foreclosed property; this sale of property is usually done by auctioning the foreclosed property to the highest bidder. As the court is not involved the law states that the legal documents need to have all the relevant details regarding the power of sale of the mentioned property and the method that was adopted for the foreclosure.

REQUIREMENTS FOR POWER OF SALE NOTICE:

To serve the notice for the power of foreclosed property sale there are a set of laws that need to be adhered to:

1. Before the property is foreclosed the lender has to serve a notice at least 10 days in advance before the foreclosed property is auctioned off. The lender must also publish the said notice for 4 successive weeks in the newspaper around the area of the said property so that general public can know about the said foreclosed property and the auction that would follow shortly.
2. The notice should also contain relevant facts like the time, date and the selected place for the sale of the foreclosed property along with the name of the person who has had a default, the amount that is to be paid to the lender by the defaulter etc.
3. As per the court rules the foreclosed property should be auctioned only during the regular working hours i.e. between 9 am to 5 pm only on the date that was mentioned. The sheriff or the trustee who is in charge of this property has the right to auction this foreclosure to the bidder who bids the highest and if for some reason the sale of the foreclosed property postponed then the date of the next auction along with the serving notice should be published in the newspapers.

The second way to recover the money lent by the lender can be through the court i.e. through judicial foreclosure process. Here the courts verdict is final and if there is no clause mentioned regarding the power of sale the lender has the rights to seek the help of the judicial foreclosure laws help to sell the property and recover the money. All the lender needs to do is file a complaint in the court which is known as alispendens. The person against whom this notice is served has about 20days by which he or she can answer to the complaint and this Alispendens statement is recorded for further use as a serving for public notice.

LEGAL INSTRUMENTS:

At the time of drafting a deed of trust document a commercial transaction is known as security agreement, and if the person fails to do the payment on time there is an alternative clause which allows the lender to recollect the debt under the terms and conditions which were set at the time of drafting the deed of trust document which can be put in as a note of reminder.

TIME PERIOD:

A stipulated time limit is given for the payment of the loan before any notice can be served and the time period given for the repayment of the loan is approximately ninety days after which a non-judicial foreclosure proceeding can be served. The borrower can file a case in the court either seeking for the postponement of the sale of the said property or can file a case of bankruptcy.

RIGHT OF REDEMPTION:

This state has a post sale statutory right of redemption for the judicial foreclosed property where by the borrower can regain or claim back the foreclosed property within 3 months even after the sale of the said property if they are able to repay the full amount of money borrowed along with a 10% interest that is levied on the original amount borrowed.

DEFICIENCY JUDGEMENT:

A deficiency judgment of the foreclosed property can be obtained if the property is sold less than the actual amount of the loan which is mentioned in the deed of trust.

STATUTES:

The laws that have been passed in the Wyoming State Legislative Assembly for the foreclosures in Wyoming can be found in the law books under the third and fourth chapters of the Title 34 which is dedicated to the Deeds of Trust and rules and regulations on the foreclosure of Mortgaged property along with the power to sell the foreclosed property.