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Wyoming · ForeclosureWyoming foreclosure surplus and deficiency: who gets paid, and who owes the shortfall

Wyoming sets the order in which the proceeds of a foreclosure sale are paid: first the reasonable expenses of collection and enforcement, and attorney's fees to the extent the law allows; then the obligations secured by the mortgage being foreclosed; then subordinate mortgages and liens on the property; and any surplus to the mortgagor on demand (W.S. 34-4-113(a)). If there is a surplus, the foreclosing lender serves the sale results – the amount due, the winning bidder and the bid – on the record owner and junior lienholders by certified mail within ten business days after the sale (W.S. 34-4-104(b)), and a junior lienholder who demands the proceeds within thirty days is paid by priority, by agreement of all parties or court order (W.S. 34-4-113(b)). The statute also states the other side: the mortgagee accounts to and pays the mortgagor any surplus, and the mortgagor is liable for any deficiency (W.S. 34-4-113(c)).

What the statutes set

  1. Order of payment (34-4-113(a))

    Costs and fees, the foreclosed mortgage, junior liens, then the mortgagor.

  2. Sale results (34-4-104(b))

    Served within 10 business days when there is a surplus.

  3. Junior lienholders (34-4-113(b))

    Demand within 30 days; paid by priority.

  4. Deficiency (34-4-113(c))

    The mortgagor is liable for any deficiency.

What the TC checks on a Wyoming short sale or foreclosure

  • Whether the payoff exceeds the expected price – a shortfall stays the borrower's debt unless the lender releases it in writing.
  • On a short sale, the lender's written approval and any release of the deficiency.
  • On a foreclosure purchase, the certificate of sale and the redemption period before the deed.

Questions about Wyoming foreclosure deficiencies

Is a Wyoming borrower liable for a deficiency after foreclosure?

Yes. The statute provides that the mortgagor is liable for any deficiency (W.S. 34-4-113(c)).

Who gets the surplus from a Wyoming foreclosure sale?

After costs, the foreclosed mortgage and junior liens are paid, the surplus goes to the mortgagor on demand (W.S. 34-4-113(a)).

Related guides

Track the payoff, the lender approval and any deficiency release as tasks on the deal in ClosingCode.

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Sources: W.S. 34-4-104, 34-4-113 (wyoleg.gov), read October 31, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.