Utah Foreclosure Process and Laws
Quick Facts About the Utah Foreclosure Process
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Primary Security Instruments: Deed of Trust, Mortgage
Right of Redemption: Yes
Deficiency Judgments Allowed: Yes
Lenders in Utah may foreclose on mortgages in default through a judicial or non-judicial process.
In the judicial foreclosure process, the lender must file a lawsuit to obtain a court order to foreclose. Once the court finds that the borrower is in default, a time period is given to the borrower to cure his default. If he is unable to pay within this time period, the property can now be put up for sale.
The non-judicial foreclosure process is used when there is a power of sale clause in a mortgage. This means that the borrower has pre-authorized the sale of the property to pay off his remaining balance in case of a default. The power to sell the property is in the lender, and he or a trustee can sell the property according to the “Power of Sale Foreclosure Guidelines.”
Power of Sale Foreclosure Guidelines
If the power of sale clause doesnot specify the terms of the sale, the non-judicial process must be carried out as follows:
- A notice of sale must be published in the county newspaper where the property is located, once a week for three consecutive weeks. The last ad must be published at least 10 days before the sale, but not more than 30 days before.
- There must also be a notice of sale put up in the property itself at least 20 days before the sale, and another notice at the office of the county recorder where the property is located.
- The place and terms of sale must be clearly stated in the notice of sale, and the schedule of sale must be between 8am-5pm.
- Borrowers have the right to redemption but the length of time before this expires is determined by the court.
A deficiency judgement may be filed in Utah, but only for the difference between the amount the borrower owed on the original loan and the foreclosure sale price. The lender may seize the property until the remaining amount is paid.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
Salt Lake City Field Office
Department of Housing and Urban Development
125 South State Street
Salt Lake City, Utah 84138
Phone: (801) 524-6070
Fax: (801) 524-3439
TTY: (801) 524-6909
Jurisdiction: State of Utah
Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday