Utah Foreclosure Law

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Below you will find information specific to Utah foreclosure law. A brief breakdown of foreclosure facts are listed in the table and are defined more thoroughly just below the table:

Judicial Foreclosures	YES
Non-Judicial Foreclosures	YES
Primary Security Instruments	Deed of Trust
How long does it take?	About 90 days after Notice of Default
Right of Redemption	Yes
Deficiency Judments Allowed?	Yes
Sale Publication Period	N/A
Sale/NTS	Trustee

 

Judicial Foreclosures

Utah foreclosure law permits the use of both deed of trust and mortgage as security instruments. When a judicial foreclosure takes place the security instrument is missing the power of sale clause; which allows lenders to skip court action and simply foreclose. In judicial foreclosures, the lender files a complaint against the borrower in default and obtains a court order prior to foreclosing on the home. So long as the borrower is in default, the court will not object to the foreclosure; it will however, give a set amount of time for the homeowner to cure his or her debt, which usually includes all accrued foreclosure expenses.

 

Non-Judicial Foreclosures

With Utah foreclosure law, the power of sale clause on either security document is a pre-authorization to foreclose and therefore lenders do not need the involvement of the courts. There is no express requirement for the deed of trust to include a power of sale clause in the state a Utah. If the clause is present on the security document, be it a mortgage or deed of trust, the property will be sold, usually at an auction without a court order, so long as the strict notice guidelines and timelines properly followed.

 

Timeline

After recording a notice of default, the lender must give the homeowner a 90-day period to pay-off the amount in default and bring the account current. The homeowner receives a copy of the notice of default via certified mail shortly after its recording. When the borrower fails to pay off what he or she owes within the 90 days, the lender moves on and records a notice of sale, which regularly precedes the foreclosure sale by 20 to 30 days but in Utah this time as in other states due to the surge of foreclosures, the timeline now varies. An ad stating the location and date of the auction sale must be published in the major county paper for at least 3 weeks. The last notice of sale must be published within 10 to 30 days of the sale date. In the state of Utah, the lender must also post a foreclosure notice on a conspicuous location on the property being foreclosed at least 20 days before the scheduled sale date.

Foreclosures are conducted as public auctions at the time and location stated in the notice of sale and previously advertised. It must take place on a business day and between the hours of 9AM and 5PM. Property is auctioned to the highest bidder. Sale can be postponed up to 45 days if proper notice is communicated to borrower.

Right of Redemption

In Utah, a homeowner may exercise a post-sale statutory right of redemption for judicial foreclosures by paying the unpaid portion of the loan in full plus foreclosure and auction costs. The right of redemption may be extended by the court so it varies on a case to case basis.

 

Deficiency Judgement

If the amount of the foreclosure sale does not satisfy the loan, Utah foreclosure law allows the lender may come after the homeowner by means of a deficiency judgement.

 

Related Links:

Utah Foreclosure Attorneys: Here you'll find a list of foreclosure attorneys specific to your area. Speak with an attorney that can help you make the best decision possible.
Notice of Sale: Understand what it is and how it relates to the foreclosure process.
Notice of Default: A document that begins the foreclosure process. We define it more clearly here.
Deficiency Judgment: Allows lenders to get a judgement against you in the amount of the deficiency after a sale at auction. Read more about it here.
Right of Redemption: Even if you've lost your property to auction, you may be able to get it back. Here is more information about what right of redemption actually is.