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

REO stands for Real Estate Owned and is a common term for a bank-owned property meaning the bank has already taken the property back through foreclosure proceedings.

Redemption rights are those rights a property owner has to pay off their debt after a foreclosure sale - these rights vary by state. In Wyoming, the owner has a 90 day redemption period which means they can pay the foreclosure buyer the amount the buyer paid at the auction + interest and not lose their home. Following the owner’s 90 day redemption period, any junior lien holders have a 30 day redemption period in which they can redeem the property to protect their lien. In Idaho there is no redemption period.

A short sale is a property sale that occurs where the proceeds from the sale are less than what is owed on the property. To accomplish this, the creditor/s must agree to accept less than what they are owed from the owner.

(Wyoming & Idaho)
1) the owner becomes in default of their mortgage or lien and is given notice by the creditor that they have started the statutory process of foreclosure.
2) Foreclosure sale takes place, conducted at the Courthouse steps (WY) or at a title office (ID) and the property is auctioned.
3) The highest bidder must pay the full amount of the sale by 5:00 PM that day.
4) In Idaho, the process is complete and the deed issued.
5) In Wyoming, the Sheriff issues and records a Certificate of Sale which creates a lien against the property. Legal title remains with the owner until the completion of both redemption periods.
6) The Certificate of Sale may be assigned or sold or kept.
7) If the owner or junior lien holders do not redeem, a Sheriff’s Deed is recorded and the buyer at the Courthouse steps becomes the owner of the property.
8) An eviction process may be necessary to remove the prior owner.

Not always. A foreclosure sale removes all liens that are junior (later in date) than the lien being foreclosed on. Examples: 1) a first mortgage is foreclosed on and there are no other debts recorded prior to that mortgage – all subsequent liens (2nd mortgage, mechanics liens, etc) are removed at the foreclosure sale but 2) if a 2nd mortgage is foreclosed on, the property is bought with all subsequent liens removed but still subject to the 1st mortgage.

Tax liens are always the debts first in line (you can never remove a tax lien at a foreclosure sale, Uncle Sam ALWAYS gets his first).

Yes. Short sales are completed like normal transactions and getting title insurance is no different than a typical sale. For foreclosure auction sales, title insurance cannot be given until the redemption period has expired.

If you are purchasing a property at auction, you will want to obtain a title commitment ahead of time to understand what issues the title company will not insure.

Graham4 welcomes the opportunity to help you buy foreclosed property. The process in Wyoming is complex as a result of its statutory redemption periods (one for the owner, one for junior lien holders) and it can take months from the time a property is sold back to the bank at the courthouse steps to the time the bank is able to sell the property. Much can happen during this time and we have the expertise, knowledge & experience to get your deal done. Conversely, in Idaho, the process can be much quicker and ownership changes without delay creating narrow windows of opportunity for buyers with specific purchase requirements. Because we closely follow properties in the foreclosure process, we know when these windows exist for your purchase.