Detailed Answer
When a foreclosure sale generates surplus funds—meaning the sale price exceeds the outstanding loan balance plus costs—Wyoming law lets certain parties claim that excess. Under Wyo. Stat. Ann. § 1-22-116, you may file a petition in the district court where the sale occurred. Follow these steps:
- Confirm eligibility. You must be a former owner (mortgagor), a junior lienholder, or another party with a recorded interest in the property.
- Gather documentation. Collect the foreclosure sale notice, deed records, loan payoff statements, and proof of your interest (e.g., recorded lien or trust deed).
- Draft the petition. Prepare a Petition for Distribution of Surplus Funds. Include the sale date, property description, sales price, amounts applied to debt and costs, your interest and its value, and a clear request for distribution.
- File with the district court. Submit your petition to the clerk of the district court in the county where the sale took place. Pay any required filing fee.
- Serve interested parties. Under W.R.C.P. 5, serve the foreclosure purchaser, senior lienholders and any other claimants by certified mail or as directed by the court.
- Attend the hearing. The court may schedule a hearing to review competing claims. Present your documentation on interest and amount claimed.
- Obtain the court order. If the court approves your claim, it issues an order directing the clerk to distribute the surplus funds to you.
- Collect the funds. After the court signs the distribution order, pick up the check from the clerk or follow the clerk’s payment procedures.
Deadline: File your petition within one year after the sale date or within the period specified in § 1-22-116. Missing the deadline may forfeit your right to the surplus.
Helpful Hints
- Verify all dates and amounts against court and foreclosure sale records.
- Keep copies of every document you file or serve.
- Use certified mail with return receipt to confirm service.
- Check the county clerk’s website for local form templates and fee schedules.
- Consider consulting an attorney if multiple claimants contest the funds.
Disclaimer: This article provides general information only and does not constitute legal advice. Always consult a qualified attorney for advice specific to your situation.