Wyoming’s Pre-Foreclosure Crisis Is Slowing

Jason Mitchell remembers the day he got the letter. A plain white envelope, no markings except for the bank’s return address in the upper left-hand corner. He knew what it was before he opened it: A notice of default.

For Jason, a single father in Casper, the warning about foreclosure wasn’t just another bill. It was the unraveling of years of effort—night shifts at the refinery, early mornings making breakfast for his 7-year-old daughter before school, skipped vacations, and constant juggling of expenses to stay afloat.

“I’ve worked my whole life to own something that feels permanent,” he says, rubbing his temples. “Now it feels like it could all disappear in an instant.”

Mitchell’s story is an all-too-common one in Wyoming these days. The state has faced a rising tide of financial strain for working families, exacerbated by inflation, stagnant wages, and a housing market that keeps edging farther out of reach. Yet, despite these pressures, recent data shows that Wyoming’s pre-foreclosure numbers are—at least statistically—declining.

The Numbers: A Mixed Picture

In June 2024, 20 Wyoming homeowners received pre-foreclosure notices, marking an 11.11% increase from May’s total of 18. But compared to June 2023, when 38 homes entered pre-foreclosure, the decline is staggering—47.37%.

The trend suggests fewer families are falling behind on mortgage payments compared to last year. Yet, for those living paycheck to paycheck, a dip in the numbers doesn’t necessarily mean relief.

“I see people coming in every day making impossible choices—paying the mortgage or buying groceries,” says Lisa Campbell, a housing counselor in Cheyenne. “Just because fewer homes are in pre-foreclosure now doesn’t mean the crisis is over. It just means fewer families have reached the breaking point yet.”

A Decade of Struggles

Wyoming’s pre-foreclosure rates have seesawed dramatically over the last 15 years. In 2017, 741 properties faced pre-foreclosure—a staggering high that surpassed even the Great Recession levels of 2009 (641 pre-foreclosures).

Since then, the numbers have mostly trended downward. In 2022, just 116 homes entered pre-foreclosure statewide. In 2023, that number surged to 521, before this year’s halfway mark of 130 (January through June 2024), putting Wyoming on pace for roughly 260 pre-foreclosures by year’s end.

It’s a stark improvement from past years—but still higher than the pre-pandemic numbers of 2018 and 2019.

What’s Behind the Decline?

Why are fewer Wyoming homeowners slipping into pre-foreclosure this year? Experts point to several factors:

• Pandemic-Era Protections Fading, but Not Vanished: Federal and state foreclosure moratoriums gave homeowners breathing room during the pandemic. While most of those protections have expired, some struggling homeowners negotiated extended repayment plans, which may be keeping them afloat temporarily.
• Higher Wages, But Not Enough: Wyoming’s job market has improved marginally, with wage hikes in key industries such as oil and gas. But inflation has offset those gains, leaving families with little excess cash for emergencies.
• A Shift in Buyer Behavior: Many who might have been at risk of foreclosure have opted to sell instead, capitalizing on Wyoming’s relatively stable housing prices before falling too far behind.

But even as fewer homes receive pre-foreclosure notices, vulnerable homeowners say they still feel the squeeze.

Living on the Edge

For families like the Mitchells, every financial decision feels like a gamble.

“Do I pay extra toward the mortgage this month, or do I keep that money for car repairs?” he wonders aloud, shaking his head. “Because if my car breaks down, I can’t get to work, and then the mortgage doesn’t get paid anyway.”

That precarious balance is what keeps housing advocates worried, despite the positive trends on paper.

“If you had one major life event—a medical emergency, job loss, sudden expense—could you cover it without falling behind on your mortgage?” asks Campbell. “For too many Wyoming families, the answer is no.”

Looking Ahead: Hope or Hardship?

The good news for Wyoming homeowners is that pre-foreclosures are shrinking. The bad news? The underlying realities—wage stagnation, rising living costs, financial precarity—haven’t gone away.

For now, Jason Mitchell is hanging on. He took a second job delivering for DoorDash at night, hoping to make ends meet. His sleep-deprived days start at dawn and stretch long into the dark hours.

“I tell myself that this is temporary,” he says. “That if I hold on just a little longer, things will turn around.”

For Wyoming homeowners caught in the same waiting game, the data might suggest the worst has passed. For anyone living the reality, it’s clear that staying above water still feels like a full-time fight.