Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Wyoming, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments. Wyoming allows for both judicial and non-judicial foreclosure processes. Judicial foreclosure involves the lender filing a lawsuit to obtain a court order to foreclose. This is necessary when there is no power of sale clause in the mortgage agreement. Non-judicial foreclosure can occur when the mortgage agreement includes a power of sale clause, allowing the lender to sell the property without court intervention after providing proper notice to the borrower. The process must comply with Wyoming statutes, which include specific requirements for notice and the opportunity for the borrower to cure the default before the sale. If the property is sold at a foreclosure sale, the proceeds go towards paying off the mortgage debt, and any surplus may be returned to the borrower. If the sale amount is insufficient to cover the debt, the lender may be able to seek a deficiency judgment against the borrower for the remaining amount.