Foreclosure and redemption revisions.

WORKING DRAFT

ORIGINAL HOUSE
BILL

NO.
0189

ENROLLED ACT NO. 82, HOUSE OF REPRESENTATIVES

SIXTY-FIRST LEGISLATURE OF THE STATE OF
WYOMING
2011 GENERAL SESSION

AN ACT relating to real property; specifying conditions under which a foreclosure sale
may
be rescinded
;
amending redemption periods for agricultural land; amending the manner in which
foreclosed
distinct lots or tracts are sold; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
;

Section 1.

W.S. 1
‑
18
‑
115 is created to read:

1
‑
18
‑
115.

Rescission of foreclosure sale.

(a)

A judicial or nonjudicial foreclosure sale may be rescinded in accordance with this section at any time after the sale but before the sheriff
'
s deed has been recorded.

(b)

If the purchaser at the foreclosure sale
was
the foreclosing mortgagee, then the foreclosing mortgagee may rescind the sale for any reaso
n by executing and recording a notice of foreclosure sale r
escission in the
office
of the county
clerk of the county where
the real estate is located.

(c)

If the purchaser at the foreclosure
sale
was

not the foreclosing mortgagee,
then the foreclosing mortgagee
and the certificate holder may
agree to
rescind the foreclosure sale for any reason
. In order to rescind such a foreclosure sale,
the foreclosing mortgagee shall
refund to the certificate holder
either an amount agreed upon by the
foreclosing mortgagee and the certificate holder, or the foreclosure sale bid amount plus ten percent (10%) interest per annum, calculated daily. In addition, both the foreclosing mortgagee and the certificate holder shall
execute
a n
otice of
foreclosure s
ale
r
escission
which
shall be recorded
in the
office
of the county
clerk of the county
where
the real estate is located
.

(d)

If the purchaser at the foreclosure sale
was
not the foreclosing mortgagee, and the certificate holder will not agree to rescind the foreclosure sale, then the foreclosing mortgagee may still rescind the sale if t
he
statutory requirements for the foreclosure sale were not fulfilled or if the foreclosure sale
did not comply with
applicable federal or state law.
In order to rescind such a foreclosure sale,
the foreclosing mortgagee shall refund
to the certificate holder
t
he purchase price,

plus ten percent (10%) interest per annum, calculated daily, and the foreclosing mortgagee shall
execute and record a
notice of foreclosure sale r
escission in the
office
of the county
clerk of the county where
the real estate is located which shall recite that the foreclosure sale is being rescinded pursuant to this subsection.

The refund of the certificate holder
'
s bid amount, plus interest,
shall be the
certificate holder
'
s
only remedy notwithstand
ing any other provision of law.

(e)

Upon recording
a
notice of foreclosure s
ale
r
escission
:

(i)

The mortgage and power of sale which
are
the subject of the
rescinded
sale
are
revived and
the mortgage
may be properly foreclosed in a subsequent foreclosure sale in compliance with applicable law, and all junior liens and rights of junior lienholders are revived with the same lien priority as if no foreclosure sale had taken place;

(ii)

The certificate of sale is rendered null and void as if no foreclosure sale had taken place; and

(i
i
i)

T
he mortgagor
'
s indebtedness to the foreclosing mortgagee and all evidence thereof are revived as of the date of the foreclosure sale and as if no certi
ficate of sale had been issued
, or as otherwise agreed to by the mortgagor and mortgagee
.

Section 2.

W.S. 1
‑
18
‑
104
(b)
and
(e)
and 34
‑
4
‑
107 are amended to read:

1
‑
18
‑
104.

Redemption by judgment creditors and others; manner prescribed; subsequent redemptions; possession, rents and profits, common carriers excepted.

(b)

The redemptioner shall pay to the purchaser or to the officer conducting the sale,
either an amount agreed upon by the purchaser and the redemptioner, or

the amount bid with interest at ten percent (10%) per annum from the date of sale, and the amount of any assessments or taxes and the amount due on any prior lien which the purchaser may have paid after the purchase, with interest. If the purchaser also has a lien prior to that of the redemptioner, the redemptioner shall also pay the amount of the lien with interest.

(e)

The execution debtor in case of a sale on execution, and the mortgagor or owner in case of a mortgage foreclosure, is entitled to possession of the lands sold and to the rents and profits for a period of three (3) months after the sale
unless the property is agricultural property in which case the entitlement to possession of the lands sold and to the rents and profits shall be for a period of twelve (12) months after the sale
.
At the expiration of three (3) months from sale
of nonagricultural land and twelve (12) months from sale of agricultural land,
the purchaser is entitled to possession and to the rents and profits of the lands until redemption is made from him, and each redemptioner until another redemption is made is likewise entitled to possession
and to the rents and profits.

3
4
‑
4
‑
107.

Manner i
n
which distinct tracts or lots sold.

If the mortgaged premises consist of distinct tracts or lots
, they shall be first offered

the foreclosing mortgagee
may offer
for sale separately
, and no more

sufficient

tracts or lots
as
shall be
sold than shall be
necessary to satisfy the amount due on such mortgage at the date of the notice of sale, with interest and costs and expenses allowed by law
,
; provided, however, that in the event the aggregate of bids on such distinct tracts or lots is not sufficient to satisfy said amount due, all such distinct tracts or lots shall be offered and

or the foreclosing mortgagee may offer all such distinct tracts or lots to be
sold as a whole.

Section 3.

This act is effective July 1, 2011.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1