Foreclosures rise, but far below national average
by Michael Moore
The good news for local homeowners is that Wyoming's foreclosure rates are among the lowest in the nation.
The bad news is that foreclosures in Casper increased sharply in the first quarter of 2008, up 250 percent compared to the same period last year.
According to RealtyTrac, a company that monitors foreclosure and other data, 56 homes in Natrona County were in some stage of the foreclosure process during that time period.
Twenty-seven homes were listed as "NOD" (meaning a notice of default was filed by a trustee to start the foreclosure process), and another 28 were listed as "REO" (real estate owned, meaning property ownership was transferred back to the lender).
One other home was listed as "NTS," meaning a notice was issued for a public auction on a foreclosed property.
RealtyTrac estimates that one in 554 homes in Natrona County was in some stage of foreclosure.
But foreclosures in Casper and throughout Wyoming don't begin to compare to states like Nevada, California, Arizona, Florida and Colorado.
In Nevada, for example, one in every 54 homes was in some stage of the foreclosure process during the first quarter of 2008; a total of 19,595 in that state were somewhere in the foreclosure process.
California had 169,831 homes (one in every 78) in the foreclosure process, while Arizona had 27,404 (one in every 95). Florida had 87,893 in the process (one in 97), while Colorado had 18,996 (one in 110).
Statewide, there were 164 homes in the foreclosure process in Wyoming (one in 1,458). Laramie County had the highest volume (90 homes, one in 417).
David Haney, executive director of the Wyoming Community Development Authority (WCDA), believes Wyoming's strong economy will keep foreclosures from running rampant like they have in places like Weld County, Colo., where 1,414 homes were in some stage of the foreclosure process during the first quarter of 2008.
"I think we're a fairly significantly different marketplace," Haney said. "If you look at Weld County, you see the proliferation of subdivision kinds of developments, and typically fairly pricey ones, if you look at Windsor."
The WCDA provides loans at a low interest rate to first-time homebuyers. The company currently is servicing about 13,000 loans, Haney said, and about 150 of those are in the foreclosure process.
Foreclosures and Wyoming law
Homeowners in Wyoming have a longer period of time compared to homeowners in other states to recover their property once the foreclosure process begins.
Under state law, lenders won't send a foreclosure notice until a homeowner has missed five payments. Once that time has elapsed, legal notices are published in a newspaper once a week for four weeks.
The property then goes to sale within 20 days of the last publication. From the day the property is sold at auction, the homeowner has three months to redeem his property.
In order to do so, he would have to pay the winning bidder the bid amount plus 10 percent per year.
According to Lindsey Svejkovsky, a collection officer for the WCDA, that can happen in a variety of ways. The original homeowner can get a new loan, for example, or find someone else to purchase the home from the winning bidder.
"We've had a couple (instances) where the people who bought the house at the courthouse steps allowed the homeowner, who is no longer the homeowner, to rent the property," Svejkovsky said.
Once those initial three months pass, any junior lien holder also has an additional 30 days to redeem the property.
Good deals?
Once the foreclosure process is complete, the property is sold at auction on the steps of the Natrona County Courthouse. Any upcoming foreclosures will be published in a legal newspaper. The winning bidder is issued a certificate of sale.
According to Natrona County Clerk Renea Vitto, her office recorded 32 certificates of sale between Jan. 1 and April 30 this year.
Just how much a foreclosed home will sell for at auction depends on the condition of the home. In states like Colorado, where homes in newer subdivisions are abandoned at alarming rates, it isn't unusual for homes to sell for less than half of their appraised value.
But in Wyoming, that hasn't been the case, Haney said. Not as many homeowners have just walked away from their property because of excessive debt.
"I think there's a common misconception that if you buy a foreclosed home, you're going to get this great deal," Svejkovsky said.
"But we have guidelines that we have to follow from insurers that say, 'You have to bid a certain amount at the foreclosure sale, otherwise you're not going to get your reimbursement from us.'"
A look at some recent sales of foreclosed homes in Natrona County shows that they sell at a variety of price levels. One house on North First Street in Mills, for example, shows a current value of $96,750, according to the Natrona County assessor's office, but sold for just $19,105.
Another on South Oak Street in Casper has a value of $159,339, but sold for $200,000.
"Even when we do get into a foreclosure activity, in a vast number of instances, unless there's something really wrong with the property, which we're finding occasionally, the market will rescue people, because we're continuing to get appreciation," Haney said.
E-mail Michael Moore at editor@casperjournal.com.