Foreclosure Process and Laws in Utah

If you default on your home loan payments in Utah, your loan servicer (acting on behalf of the lender) will eventually initiate the foreclosure process. In most cases, this is done through nonjudicial foreclosure, a streamlined process that doesn’t require court involvement, although judicial foreclosures are also permitted.

Utah law sets out clear procedures for nonjudicial foreclosures, starting with a preforeclosure notice that gives you at least 30 days to cure the default. If you don’t get caught up on your payments, the servicer records a notice of default in the land records, giving you another three months to resolve the default before it issues a notice of sale. During this process, federal laws and Utah foreclosure laws provide you with important rights and protections.

What Are My Foreclosure Rights in Utah?

Both federal and state laws govern foreclosure procedures in Utah, and your mortgage contract gives you rights during the process.

Your Mortgage Rights in Utah

If you get a loan to buy residential real estate in Utah, you'll likely sign two documents: a promissory note and a deed of trust.

• Promissory note. The promissory note is the document that contains your promise to repay the loan along with the repayment terms.
• Deed of trust. The deed of trust is the document that gives the lender a security interest in the property. If you fail to make the payments, this document provides the lender with the right to sell the home at a foreclosure sale to recoup the money it loaned you.

You also get certain contractual rights under the promissory note and deed of trust. For example, if you're late making your monthly payment, most promissory notes provide a grace period of ten to fifteen days before you'll incur late charges. To find out the grace period in your situation and the amount of the late fee, check the promissory note.

Many deeds of trust in Utah have a provision that requires the lender to send a breach letter if you fall behind in payments. This notice tells you that the loan is in default. If you don't cure the default, the lender can accelerate the loan (call it due) and go ahead with the foreclosure.

Your Rights Under Federal Foreclosure Laws

In most cases, federal mortgage servicing laws require the loan servicer to contact you (or attempt to contact you) by phone to discuss foreclosure alternatives, called "loss mitigation" options, no later than 36 days after a missed payment and again within 36 days after each following missed payment. (12 C.F.R. § 1024.39 (2025).)

No more than 45 days after a missed payment, the servicer must let you know in writing about loss mitigation options that could be available and assign personnel to help you. There are a couple of exceptions to these requirements, like if you file for bankruptcy or tell the servicer not to contact you under the Fair Debt Collection Practices Act. (12 C.F.R. § 1024.39) (2025).)

Federal law also generally requires the servicer to wait until the loan is over 120 days delinquent before officially starting a foreclosure. But in a few situations, like if you violate a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder, the foreclosure can begin sooner. (12 C.F.R. § 1024.41 (2025).)

Protections If You're in the Military

If you're in the military, the federal Servicemembers Civil Relief Act provides certain legal protections against foreclosure.

Other Foreclosure Rights for Utah Homeowners

In a Utah foreclosure, you'll also get the right to:

• receive a preforeclosure notice and notice of the foreclosure
• bring the loan current to stop the foreclosure sale
• pay off the loan to prevent a sale, and
• get any surplus funds after a foreclosure sale

Utah Foreclosure Laws

Again, most foreclosures in Utah are nonjudicial. Here's how the Utah nonjudicial foreclosure process works:

Preforeclosure Notice in Utah

Before the lender or servicer can officially start the foreclosure, it has to mail you (the borrower) a notice of intent to file a notice of default. This preforeclosure notice must include, among other things, information about:

• who you can contact to find out about getting a loan modification or other foreclosure relief, and
• provide 30 days to pay the amount due to cure the default (catch up on payments) and avoid the filing of a notice of default. (Utah Code § 57-1-24.3 (2025).)

Utah law also provides borrowers with specific rights during the loss mitigation process, like the right to a single point of contact while seeking an alternative to foreclosure. Before the expiration of the three-month period described below, you may apply directly with the single point of contact for any available foreclosure relief. (Utah Code § 57-1-24.3 (2025).) This information might be combined with the breach letter.

Notice of the Foreclosure in Utah

To officially start the foreclosure, the trustee records a notice of default in the county recorder’s office at least three months before giving a notice of sale. (Utah Code § 57-1-24 (2024).)

The trustee mails a copy of the notice of default within ten days after recording it to anyone who requested a copy. (Utah Code § 57-1-26(2)(a) (2025).) Most deeds of trust in Utah include a request for notice, so borrowers typically get this notification.

Notice of the Foreclosure Sale in Utah

The trustee mails a copy of the notice of sale to you at least 20 days before the sale if the deed of trust includes a request for notice. (Utah Code § 57-1-26(2)(b) (2025).) Again, most Utah deeds of trust have a request for notice provision. Check your loan documents for details.

The lender or trustee also:

• publishes the notice in a newspaper, and
• posts the notice on the property at least 20 days before the sale. (Utah Code § 57-1-25 (2025).)

Foreclosure Sales in Utah

The sale is an auction, open to all bidders. The lender usually bids on the property using a "credit bid" rather than bidding cash. With a credit bid, the lender gets a credit up to the amount of the borrower’s debt. The highest bidder at the sale becomes the new owner of the property.

If a bidder, say a third party, is the highest bidder and offers more than you owe, and the sale results in surplus funds (money over and above what's needed to pay off all the liens on your property), you're entitled to that surplus money.

What Are the Options Available for Borrowers During Foreclosure in Utah?

You might be able to prevent a foreclosure sale by reinstating the loan, redeeming the property before the sale, filing for bankruptcy, or working out a loss mitigation option, like a loan modification, short sale, or deed in lieu of foreclosure.

Right to Reinstate Before a Foreclosure Sale in Utah

“Reinstating” is when a borrower pays the overdue amount, plus fees and costs, to bring the loan current and stop a foreclosure. Utah law gives you three months after the trustee records the notice of default to reinstate. (Utah Code § 57-1-31 (2025).)

Also, the deed of trust might give you more time to complete 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 lender will let you reinstate.

Filing for Bankruptcy

If you're facing a foreclosure, filing for bankruptcy might help. Once you file for bankruptcy, something called an "automatic stay" goes into effect. The stay functions as an injunction prohibiting the lender from foreclosing on your home or trying to collect its debt, at least temporarily.

In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months and eliminate other debts. But if you're behind in mortgage payments when you file, you won't be able to keep your home. To stay in your house, you must be current on payments and be able to protect your equity with an exemption. However, you won't owe anything after foreclosure because Chapter 7 erases mortgage debt. If you want to save your home and you're behind in payments, filing for Chapter 13 bankruptcy might be the answer. To find out about the options available, speak with a local bankruptcy attorney.

Deficiency Judgment Following the Sale in Utah

Sometimes, a foreclosure sale doesn’t bring in enough money to pay off the full amount owed on the loan. The difference between the sale price and the total debt is called a “deficiency balance.” Many states allow the lender to get a personal judgment, called a “deficiency judgment,” for this amount against the borrower.

In Utah, the lender can get a deficiency judgment after a nonjudicial foreclosure by filing a lawsuit within three months after the sale. (Utah Code § 57-1-32 (2025).)

Limitation on Deficiency Judgments

A deficiency judgment is limited to the lesser of:

• the total debt, including interest, costs, and expenses of the sale, like trustee's and attorneys' fees, minus the property’s fair market value, or
• the total debt minus the foreclosure sale price. (Utah Code § 57-1-32 (2025).)

No Redemption Period After a Foreclosure Sale in Utah

Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. In Utah, though, you don't get a redemption period after a nonjudicial foreclosure. (Utah Code § 57-1-28(3) (2025).)

Eviction After a Utah Nonjudicial Foreclosure

If you don’t leave the home after a Utah foreclosure sale, the new owner has to give you a notice to quit (leave) before initiating an eviction action. (Utah Code § 78B-6-802.5 (2025).)

Resources for Utah Homeowners Facing Foreclosure

The Utah courts website provides helpful information on foreclosure, including details about the Utah foreclosure process and timeline.

In addition, a HUD-approved housing counselor can provide helpful information (at no cost) about various alternatives to foreclosure.

Getting Help from a Utah Foreclosure Lawyer

Foreclosure laws are complicated. Servicers and lenders sometimes make errors or forget steps. If you think your servicer or lender failed to complete a required step, made a mistake, or violated state or federal foreclosure laws, you might have a defense that could force a restart to the foreclosure or you might have leverage to work out an alternative.

Consider talking to a local foreclosure attorney or legal aid office immediately to learn about your rights. A lawyer can also tell you about different ways to avoid foreclosure.