Luxury Real Estate

Courtesy of: Jackson Hole Real Estate Associates

These Days, we’re getting lots of questions about foreclosures. Following are brief answers to some of the most common questions we’re receiving. If you’re interested in a foreclosure property, we also suggest you contact a Realtor for information about the property and a real estate attorney for help with the many legal issues surrounding foreclosure.

What is “foreclosure?”

Foreclosure is a legal proceeding to terminate a borrower’s interest in real property instituted by the lender to either gain title to the land or force a sale in order to satisfy the unpaid debt secured by the property.

In Wyoming, there are two different methods of foreclosure:

1) Judicial Foreclosure—used when no “power of sale” language exists in the mortgage or if there is some defect or deficiency in the mortgage. This is more costly and time consuming method because the property is sold through a court proceeding requiring many legal steps.

2) Nonjudicial of Power of Sale Foreclosure—A process through which the mortgaged property is sold at a nonjudicial public sale by a public official. Thos is b y far the most common foreclosure method used in Teton County.

What is a “short sale?”

A short sale is when the proceeds from the sale of real estate fall short of the balance on the mortgage loan. The lender agrees to accept less than the amount due on the loan due to financial hardship on the part of the borrower. Generally, lenders won’t discuss short sale requests unless the borrower is already far behind on mortgage payments.

How does the Power of Sale foreclosure process work in Teton County, Wyoming?

1) Once the mortgage is in default, the foreclosing lender must comply with statutory requirements regarding notice and publication.

2) The sale, or auction, takes place on the courthouse steps at 10:00 on the published date and is conducted by the sheriff or deputy sheriff.

3) The highest bidder must pay the full amount of the bid to the sheriff’s office by 5:00pm the day of the sale.

4) The wining bidder will receive a Certificate of Sale to be recorded in the land records, which creates a lien against the property—legal title to the property remains in the mortgagor until the expiration of the redemption period.

5) Certificates of Sale may be assigned or sold, and the assignee is entitled to all the rights of the original person named.

6) For non-agricultural properties, the property owner has 3 months from the date of sale to redeem the property by paying the bid amount plus 10% interest and other fees.

7) If the property owner does not redeem, judgment creditors and other lien holders then have 30 days to redeem. If so, another redemptioner may, within 30 days, redeem from the last redemptioner and so on.

8) If the property is not redeemed after the expiration of all redemption periods, the purchaser will receive a Sheriff’s Deed to the property.

What do I do if I am interested in a foreclosure property?

There are 3 basic approaches, depending on the stage of the foreclosure process.

1) Buying directly from the delinquent property owner prior to auction.

Be sure to work with a qualified Realtor, attorney, title company and inspector and this method could work for you. If you ignore the normal safeguards, you wind up with a property in poor condition, not to mention liens, real esate taxes, utility bills, etc.

2) Buying at auction

This is the riskiest type of foreclosure investing. The properties sold at auction are “as is” with no opportunity for inspection and no warranties from the prior owner. It’s likely the distressed homeowner delayed routine maintenance and upkeep and possibly even vandalized or gutted the home prior to auction. And, if you buy an occupied property, you may have to evict the former owners.

3) Buying from the lender after the auction (REO, or Real Estate Owned)

Most foreclosed properties are taken back by the bank at auction, and the bank will generally “clean up” the property and list it with a Realtor sale. While possibly more risky than a standard real estate transaction (you probably won’t get a seller’s disclosure, for example), this option is certainly safer than buying at auction.

Can I finance a foreclosure property?

Generally, no. The sheriff will require full payment of the bid amount by 5:00pm the day of the auction. And you can’t borrow money against this property and file a mortgage, because title remains vested in the current owner until the expiration of all redemption periods.

Does a foreclosure “wipe the slate clean?”

Not always. While most liens will be extinguished via the foreclosure process, you could still be liable for real property taxes and federal tax liens, for example.

Is title insurance available on foreclosed properties?

Yes. Once all redemption periods have run and you have received a Sheriff’s Deed to the property, JHTE can provide you with an Owner’s Policy of Title Insurance.

However—if you are planning to bid at auction, be sure to contact JHTE up front and obtain a title commitment. You’ll want to know if there are any title issues that might not be cleaned up by the foreclosure process that will become your responsibility (such as real property taxes or federal tax liens). In addition, it would be helpful to know if there are multiple junior creditors who could successively assert redemption rights and significantly lengthen or delay the foreclosure process.

Is foreclosure investing right for me?

Buying foreclosed properties is not for the novice or faint of heart. As you’ve seen above, there are certainly many risks involved (such as defective or vandalized properties, liens or other title problems, and evicting the former owners). On the other hand, the profits can be significant.

If you’re considering a foreclosure property, be realistic about the challenges and amount of work involved. If you minimize your risk by working with an experienced Realtor, attorney and title company, you’ll increase your chances of success with foreclosure properties.

This is provided for informational purposes only and is not intended as legal advice. You should consult an attorney if you are considering buying a foreclosure property.

Pending Foreclosures - Teton County, Wyoming

Updated December 17, 2009

The following are pending foreclosures in Jackson Hole. To learn more about, or how to take advantage of, these opportunities please contact David or Devon Viehman at davidviehman@jhreassociates.com or (307) 734-9941.

Property Type: Teton Village Condominium

Address: Four Seasons Unit 854 - JH Residence Club - 7680 Granite Loop Rd.

Size: 3 bedroom, 2 bath, 2,240 sq. ft.

Comments: Four Seasons Resort and Hotel. Cable; Elevator; Fire Sprinkler; Furnished; Pool; Ski in/out; Hi-Speed Internet. Ski in/out; Year Round Access

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-42-17-24-1-10-005

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-42-17-24-1-10-005

MLS Link: http://www.flexmls.com/link.html?oy7wywuq8th,10,1

Foreclosing Lender: Wells Fargo Bank

Opening Bid (Approx.): $1,792,771.19

Date of Sale: 12.29.09

Property Type: Teton Village Condominium

Address: Four Seasons Unit 857 - JH Residence Club - 7680 Granite Loop Rd.

Size: 2 bedroom, 3 bath, 1,720 sq. ft.

Comments: Enjoy all that the Four Seasons has to offer including ski-in ski-out access, spa, pool, and restaurants. Cable; Deck; Elevator; Fire Sprinkler; Furnished; Hardwood Floors; Landscaped; Pool; Ski in/out; Hi-Speed Internet

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-42-17-24-1-10-008

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-42-17-24-1-10-008

MLS Link: http://www.flexmls.com/link.html?oy7wyqpz8r8,10,1

Foreclosing Lender: Wells Fargo Bank

Opening Bid (Approx.): $1,457,115.67

Date of Sale: 12.29.09

Property Type: Teton Village Vacant Lot

Address: Lot 33 Granite Ridge - 7775 N. Lower Granite Ridge

Size: .67 acres

Comments: This wonderfully private treed 0.63-acre lot in Granite Ridge is the ideal location for your dream mountain cabin. It is adjacent to the ski trail and walking distance to the Four Seasons. All lots adjoining are developed. The lot to the South West is owned by an existing owner for protection.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-42-17-24-1-01-033

County Clerk Records: http://www2.tetonwyo.org/clerk/query/?PIDN=22-42-17-24-1-01-033

MLS Link: http://www.flexmls.com/link.html?oy7wyz516vq,10,1

Foreclosing Lender: Wells Fargo Bank

Opening Bid (Approx.): $2,279,297.25

Date of Sale: 12.29.09

Property Type: Single Family Residence

Address: West Bank - Lot 14 Lake Creek Ranch - 6695 N. Granite Creek Road

Size: 5 bedroom, 5 bath, 5,938 sq. ft. on 4.54 acres

Comments: This spectacular property is the perfect Jackson Hole Retreat with a warm and inviting 5,938 sq. ft., 5 bedroom traditional log home; a beautiful 4.5 acre landscaped lot on the meandering Granite Creek; shared ownership of the 365+ acre Lake Creek Ranch with a ranch manger, barns, corrals and pastures for horses and Snake River frontage; riding trails into Grand Teton National Park. Square footage and taxes are per the Teton County Assessor's Office.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-42-16-20-3-01-001

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-42-16-20-3-01-001

MLS Link: http://www.flexmls.com/link.html?oy7wz728qpa,10,1

Foreclosing Lender: Wells Fargo Bank

Opening Bid (Approx.): $5,613,885.00

Date of Sale: 12.29.09

Property Type: Single Family Residence

Address: West Bank - Lot 6 Lake Creek Acres - 3075 Bridger Road

Size: 2 bedroom, 2 bath, 1,568 sq. ft. built in 1990 on 4.15 acres

Comments: Very nicely built log home bordering Snake River Associates Ranch. Only two bedrooms, both on opposite ends of the house; loft in master bedroom, vaulted ceilings; river-rock fireplaces (double sided in LR and MBR) water completely surrounds the property and a nice bridge in driveway, trees and backing the SRA ranch. No garage or outbuildings. Views are there but need to cut trees; cedar shake roof; no maintenance yard.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-17-01-4-01-002

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-17-01-4-01-002

MLS Link: was never in MLS

Foreclosing Lender: Private Lender

Opening Bid (Approx.): $1,006,650.78

Date of Sale: 1.5.10 (originally 12.1.09)

Property Type: Single Family Residence

Address: Westbank - Lot 1 of the Aspens 1st Filing - 3560 N. Lake Creek Drive

Size: 2 story,5 bedroom, 3 bath, 2,922 sq. ft. built in 1983 on .99 acres

Comments: There are few furnished 5-bedroom homes available for sale in Jackson Hole. This home is 100% turn-key with wonderful furnishings and it is located in the popular Aspens/Racquet Club, a short-term rental district. A lovely large lot, mountain views, seasonal stream and abundant sunshine are a few of the highlights. This property gets better the more you see it. It's a great set-up for a big family or several families. Easy to show so please call when considering the Westbank single family homes under $2M. One of the owners is a licensed Realtor.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-17-11-1-01-012

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-17-11-1-01-012

MLS Link: http://www.flexmls.com/link.html?oy7x07o99hg,10,1

Foreclosing Lender: JPMC/Washington Mutual

Opening Bid (Approx.): $1,411,820.74

Date of Sale: 1.14.10

Property Type: Town Square Commercial

Address: Clubhouse Addition - 15 East Deloney – Town of Jackson, WY

Size: two story, 8,460 sq. ft. on .115 acres

Comments: One of the most visible locations on the Town Square, this historic landmark was originally Jackson Drug and current home to Davies-Reid. The building is being sold in its entirety including 2940sf of prime finished retail space, 2600sf of storage and a 2940sf 2nd floor urban residence consisting of 4 bedrooms/2.75 baths. Very favorable LO and TSO zoning provide endless opportunities.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-16-27-3-16-006

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-16-27-3-16-006

MLS Link: http://www.flexmls.com/link.html?oy7x0ahzazg,10,1

Foreclosing Lender: Bank of America

Opening Bid (Approx.): $2,763,715.67

Date of Sale: POSTPONED - New date TBD (originally 12.29.09)

Property Type: Downtown Jackson Commercial

Address: Lot 11 WW Smith Addition. - 177 Center Street

Size: .07 acre UC-LO lot

Comments: New Unfinished development opportunity, 1 Block North of Town Square on Cache alley. 4 Units permitted as office space with 7 parking stalls. Being sold ''AS IS''. Potential investment includes Building plans. Some materials on site. Possible short sale.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-16-27-3-25-001

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-16-27-3-25-001

MLS Link: http://www.flexmls.com/link.html?oy7x0cs79l9,10,1

Foreclosing Lender: FDIC for ANB Financial

Opening Bid (Approx.): $846,392.45

Date of Sale: 1.14.10

Property Type: Town of Jackson Condominium

Address: Unit 484 Grand View Condominiums - 548 Snow King Loop

Size: 3 bedroom, 3 bath, 2,317 sq. ft. built in 2004

Comments: Grand Teton and Snow King views from these new, full ownership condominiums located at the base of snow king resort. Property Features: Cable to Property, Electric to Property, Mountain View, On Paved Road, Phone to Property, Teton View, Trees, Year Round Access, Amenities: Cable, Cathedral Ceilings, Deck, Dish washer, Disposal, Dryer, Eat-in Kitchen, Furnished, Landscaped, Microwave, Pool, Range, Refrigerator, Tennis Court, Teton View, Washer , Wet Bar

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-16-34-3-02-004

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-16-34-3-02-004

MLS Link: http://www.flexmls.com/link.html?oy7x0fjw32x,10,1

Foreclosing Lender: Deutsche Bank

Opening Bid (Approx.): $813,015.43

Date of Sale: 1.5.10

Property Type: Town of Jackson - Condominium

Address: Unit 304 High Teton Condo - 755 E. Hansen Unit 304

Size: 3 bedroom, 2 bath, 1,041 sq. ft. built in 1973

Comments: Excellent East Jackson location, this 2/3 bedroom, spacious loft, 2 bath, 1,041 sq. ft. condo has been totally remodeled with fine quality finishes throughout. As-new condition, top floor unit with cathedral ceilings, deck and patio, considered one of the best units in the complex, Teton views. Close to town and adjacent to open space and short distance to Cache Creek.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-16-34-1-79-034

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-16-34-1-79-034

MLS Link: http://www.flexmls.com/link.html?oy7x2cu76a8,10,1

Foreclosing Lender: JSBT/Wells Fargo

Opening Bid (Approx.): $435,000.00

Date of Sale: 1.12.10

Property Type: Single Family Residence – Town of Jackson

Address: Lot 36 Horn Enterprises - 230 Crabtree Lane

Size: 3 bedroom, 2 bath, 1,886 sq. ft. built in 1979 on .115 acres

Comments: A best value: 1,886 sf, 3 bedroom, 2 bath home with living room and family/media room in a quiet neighborhood. Large fenced yard; across from bike path. Wood floors, large storage/laundry room, mature landscaping. Appliances plus extra refrigerator and freezer included! This is a short sale subject to bank approval. Owner is a licensed WY realtor.

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-41-16-32-4-14-012

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-41-16-32-4-14-012

MLS Link: http://www.flexmls.com/link.html?oy7x2emvsi0,10,1

Foreclosing Lender: MERS/Security Nat’l.

Opening Bid (Approx.): $540,818.66

Date of Sale: 1.14.10 (originally 11.10.09, 12.10.09)

Property Type: Vacant Lot – North of Town

Address: Lot 34 Owl Creek - 8870 Deland Drive

Size: 3.1 acres with Snake River access

Comments: 3.1 acre building site north of town in the Owl Creek Subdivision. This lot is on a quiet road, tucked up against the bank. Beautiful, straight on views of the Tetons with a couple of potential building sites. Two ditches flow across the property providing for the potential of constructing a reflection pond in front of your house. Located minutes from town, Golf & Tennis, and Teton National Park, this property offers a spectacular opportunity for that buyer who wants a quiet retreat with fantastic views. The potential for water features gives this property additional appeal. Wildflowers, waterfowl, and views!

County GIS: http://www2.tetonwyo.org/mapserver/map.php?view=pd&pidn=22-42-16-15-2-05-009

County Clerk Records: http://www2.tetonwyo.org/clerk/query/list.php?pidn=22-42-16-15-2-05-009

MLS Link: http://www.flexmls.com/link.html?oy7x2gpsf6s,10,1

Foreclosing Lender: Zions First National Bank

Opening Bid (Approx.): $400,907.99

Date of Sale: 1.12.10