Stop Foreclosure in Utah


How to Stop Foreclosure in Utah

The economy has had its grave impact on the real estate market, crushing an already dying economy. This has increased the number of home foreclosures, snowballing lenders and real estate firms across the nations. The amount of owner’s readjustment on home mortgage terms is on the rise and in the state of Utah, avoiding your home from being seized can be an embattling situation. If you are one of the countless mortgage owners who have failed to make payments because of the global financial crisis then chances are you’ve received a notice to sell from your mortgage company and is looking for a way to salvage your home and get a second lease on your mortgage.

The most important measure is to acknowledge your financial situation. One of the biggest stopgaps for most homeowners is to forego negotiations and the possibility of extending their mortgage or renewing the payment terms by ignoring the early warning signs and notices and choosing an ostrich approach by ignoring settlement papers until it’s too late.

You have the power in your hands by being smart about your payment choices and being vocal with your mortgage company about your ability to make payments.

Have a dialogue with your mortgage company in advance if you know that you won’t be able to make the payment for that month, the best way to go about stopping a foreclosure is renegotiating the terms of your payment scheme in the event of financial difficulties.

Mortgage companies prefer to reinstate or renew the contract terms of a mortgage instead of foreclose so you will have a lot of support in the event that you fall back on your payments, as long as you notify in advance and do not ignore mortgage notification. If you are seriously down on your finances and cannot keep the home but do not want to acquire a huge dent on your credit rating, consider exploring the option of a short sale.

This will save you and the mortgage company trouble and will allow you to recover a portion of what you have already investment in your property.

Synopsis of Utah Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Varies

Right of Redemption: Yes

Deficiency Judgments Allowed: Yes

In Utah, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.

Judicial Foreclosure

The judicial foreclosure process is one in which the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold in the manner of normal execution sales.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

  1. A notice of sale must be published once a week for three (3) consecutive weeks in a newspaper of general circulation in the county where the property is to be sold. The last publication must be at least ten (10) days but not more than thirty (30) days before the date of sale is scheduled.
  2. The notice of sale must also be posted, at least twenty (20) days before the date of sale is scheduled, in some conspicuous place on the property to be sold and at the office of the county recorder of each county in which the property is located.
  3. The place of sale must be clearly advertised in the notice of sale and the sale must be held between the hours of 8 am and 5 pm.
  4. Borrowers do have a right of redemption in Utah, but the court may extend the redemption time past the time allowed in regular judgments so there is no set length of time.

It is possible to obtain a deficiency judgment against the borrower for the difference between the amount the borrower owed on the original loan and the foreclosure sale price and the lender may be able to seize the property until the differing amount is paid.

Where to go to for Foreclosure Help

Salt Lake City Field Office

Department of Housing and Urban Development
125 South State Street
Suite 3001
Salt Lake City, Utah 84138

Phone: (801) 524-6070
Fax: (801) 524-3439
TTY: (801) 524-6909

Jurisdiction: State of Utah

Dwight Peterson
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Stop Foreclosure Early

Elite Home Mortgage
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Atlas Mortgage: Reverse Mortgage in Utah
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5241 South State #2
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Capital Financial Group
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Simply The Best Mortgages
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American Mortgage Professionals, Inc
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The Mortgage Solutions Group
(801) 302-9317
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Integrity First Financial
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Wasatch Mortgage Solutions
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RE/MAX Results
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