If you’re a homeowner facing foreclosure in Utah, the process will most likely be nonjudicial. To find out what this means for you, keep reading and learn some of the key features of Utah’s nonjudicial foreclosure law, including Utah’s rules regarding notice of the foreclosure, how long you’ll get to reinstate the loan before the sale, Utah’s deficiency law, citations to the statutes so you can read the law yourself, and more.
The citations to Utah’s foreclosure statutes are:
We’ve summarized important parts of Utah’s foreclosure laws below. You can find more detailed articles on various aspects of Utah foreclosure law in Nolo’s Utah Foreclosure Law Center.
Utah foreclosures tend to be nonjudicial, which means they happen outside of court. Judicial foreclosures, which go through the court system, are also possible. (Learn more about nonjudicial and judicial foreclosures.) Because foreclosures in Utah are typically nonjudicial, this article focuses on that process.
In Utah, a foreclosing lender must give three notices to the defaulting borrower: a notice of intent to file a notice of default, a notice of default, and a notice of sale.
Notice of intent to file a notice of default. Before the lender or servicer (the company that handles mortgage accounts on behalf of the lender) can officially start the foreclosure, it must mail the borrower a notice of intent to file a notice of default. The notice must include, among other things, information about who the borrower can contact to find out about obtaining a mortgage modification or other foreclosure relief, and provide 30 days to pay the amount due to cure the default and avoid the filing of a notice of default. Utah Code Ann. § 57-1-24.3. (To learn more about mortgage modifications and other forms of foreclosure relief, visit Nolo's Alternatives to Foreclosure area.)
Notice of default. To officially start the foreclosure, the trustee (the third party that administers nonjudicial foreclosures on behalf of the lender or servicer) records a notice of default in the county recorder’s office at least three months before giving a notice of sale. Utah Code Ann. § 57-1-24.
The trustee mails a copy of the notice of default to the borrower within ten days after the recording date (if the deed of trust includes a request for notice). Utah Code Ann. § 57-1-26(2)(a).
Notice of sale. The lender or trustee mails a copy of the notice of sale to the borrower at least 20 days before the sale (if the deed of trust includes a request for notice). Utah Code Ann. § 57-1-26(2)(b). The lender or trustee also:
Utah's Service Members' Civil Relief Act provides various protections (including protections against foreclosure) to National Guard members serving full-time with a recognized military unit called into service by the governor for at least 30 days. Utah Code Ann. § § 39-7-102, 39-7-115. Utah's protections are similar to the protections under the federal Servicemembers Civil Relief Act.
“Reinstating” is when you catch up on the defaulted mortgage's missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
In Utah, there is a three-month reinstatement period after the lender or trustee records the notice of default. Utah Code Ann. § 57-1-31.
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure. In Utah, foreclosed homeowners do not get the right to redeem the home after a nonjudicial foreclosure. Utah Code Ann. § 57-1-28(3). (To get details on redemption after a foreclosure in Utah, see Nolo’s article If I lose my home to foreclosure in Utah, can I get it back?)
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Utah, the lender may obtain a deficiency judgment following a nonjudicial foreclosure if it files a lawsuit within three months after the foreclosure sale. Utah Code Ann. § 57-1-32. (For a summary of the deficiency law in Utah, see Utah Laws on Post-Foreclosure Deficiency.)
If the homeowner doesn't vacate the home after a Utah foreclosure sale, the purchaser must give the foreclosed homeowner a notice to quit (leave) before initiating an eviction action. Utah Code Ann. § § 78B-6-802.5, 78B-6-801(7).