Because the state of Wyoming is a title theory state, the main recourse for foreclosure is non-judicial. The primary instrument of security for the underlying loan is the Deed of Trust and as such the property remains in trust until the loan has been fully repaid. In the case of a non-judicial foreclosure a “foreclosure by advertisement” is carried out and this entails following a stringent set of notice guidelines in relationship to the power of sale action.
Wyoming law also allows for the mortgage lien to be used, and in this instance a judicial foreclosure is called for which entails seeking a court order. But the deed of trust is used most often and non-judicial foreclosure is a far more streamlined process which takes less time to finalize. In the case of both judicial and non-judicial foreclosures, if they are contested the process takes much longer to finalize.
In the case of a non-judicial foreclosure the trustee who is a legal representative of the lender, uses the power of sale default to remedy the recovery of the debt caused by a delinquent loan. A notice of intent to foreclose must be personally served on the borrower 10 days prior to the notice of sale being published. The notice of sale must be advertised in a general circulation newspaper for 4 consecutive weeks prior to the sale. And the property is sold at a public auction held at the county courthouse in which the property is situated.
Statutory rights of redemption are allowed to the borrower after the sale has taken place but this is only the case if a judicial foreclosure takes place. Deficiency judgments are allowed to the lender in both cases if the sale of the property does not cover the amount of the debt owed.