If you’re facing a foreclosure in Utah, it’s a good idea to learn as much as you can about the process. In this article, you can find out:
You’ll also get information about significant protections for homeowners in foreclosure, like the 120-day preforeclosure period under federal law and whether you might have to pay a deficiency judgment following the foreclosure.
The citations to Utah’s foreclosure statutes are:
Below you’ll find a summary of some of the key features of Utah’s foreclosure laws along with relevant citations to the statutes so you can read the laws yourself. (If you need help finding the statutes, see Finding Your State’s Foreclosure Laws.)
Keep in mind that statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you’re facing a foreclosure.
Utah foreclosures tend to be nonjudicial, which means they happen outside of court. Judicial foreclosures, which go through the court system, are also possible. Because foreclosures in Utah are typically nonjudicial, this article focuses on that process.
Before the bank or servicer (the company that handles mortgage accounts on behalf of the bank) can officially start the foreclosure, it must mail the borrower a notice of intent to file a notice of default. This preforeclosure notice must include, among other things, information about:
To officially start the foreclosure, the trustee (the third party that administers nonjudicial foreclosures) 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 within ten days after the recording date to anyone who requested a copy. (Most deeds of trust in Utah include a request for notice, so borrowers typically get this notification.) (Utah Code Ann. § 57-1-26(2)(a)).
The 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 bank or trustee also:
"Reinstating" is when the borrower catches up on the defaulted mortgage's missed payments, plus fees and costs, to stop a foreclosure. Utah law provides the borrower with a three-month reinstatement period after the trustee records the notice of default. (Utah Code Ann. § 57-1-31).
Also, the loan contract might give you more time for completing a reinstatement. Check the paperwork you signed when you took out the loan to find out if you get more time to bring the loan current and if so, the deadline to reinstate. You can also call your loan servicer and ask if the bank will let you reinstate.
In some states, you can redeem your home within a specific amount of time after the foreclosure. In Utah, though, foreclosed homeowners don't get the right to redeem the home after a nonjudicial foreclosure. (Utah Code Ann. § 57-1-28(3)).
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a "deficiency." Some states allow the foreclosing bank to seek a personal judgment, which is called a "deficiency judgment," against the borrower for this amount. Other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Utah, the foreclosing bank may obtain a deficiency judgment following a nonjudicial foreclosure by filing a lawsuit within three months after the foreclosure sale. (Utah Code Ann. § 57-1-32).
A deficiency judgment is limited to the lesser of:
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).
If you want to get more information about foreclosure procedures in Utah or find out about potential defenses to a foreclosure, consider talking to a foreclosure lawyer. Also, consider making an appointment to speak to a HUD-approved housing counselor if you want to learn about different foreclosure avoidance options and how to apply for one.