Utah Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: Court’s Discretion
Deficiency Judgments Allowed: Yes
Time Frame: Varies
Public Notice: Notice of Default
Utah is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by either a mortgage or a deed of trust, both of which serve the same purpose.
The state allows for two types of foreclosures: judicial and non-judicial foreclosure. The state has a post-statutory right of redemption period to allow the borrower to reclaim their property if they pay their default in full plus additional costs, but this time frame varies from case to case. Lenders may seek a deficiency judgment in the event that a property is sold for less than what was owed on it.
Types of Foreclosures Allowed in Utah
Judicial foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The lender must file a complaint against the borrower to obtain a decree of sale from a court with jurisdiction in the county where the property is located. If the court finds the borrower to be in default, the borrower will be given a short period of time to settle their debt, and if they cannot, the property will be sold in the same way any other sale would occur.
Non-judicial foreclosure, which is also known as foreclosure by power of sale, does not require court supervision to sell the property. In order for non-judicial foreclosures in Utah to be possible, the loan documents must contain a power of sale clause, authorizing the lender to sell the property in the event of default.
There are two ways in which a non-judicial foreclosure in Utah can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the sale must follow the following guidelines:
1. Before the foreclosure can be initiated, the lender must file a notice of default in the county where the property is located and inform the borrower within three (3) months of the default.
2. A notice of sale must be published in a newspaper that circulates in the county where the property is to be sold once a week for three (3) consecutive weeks. The last publication must be printed between ten (10) days and thirty (30) days before the scheduled sale date.
3. The notice of sale must also be posted on the property itself as well as at the office of the county recorder at least twenty (20) days before the sale date.
4. The notice must contain information regarding when and where the sale will take place. Foreclosure sales in Utah must be held between 8 am and 5 pm.
5. Although there is a right of redemption period in the state, the court may grant the borrower extra time to pay off their default and keep their property.
Hiring a Foreclosure Attorney in Utah
Due to the current condition of the economy, many mortgagors have undergone severe pay cuts or have even lost their jobs completely. Many borrowers have fallen behind on their mortgage payments and are in danger of having their homes repossessed. Although receiving a foreclosure notice is devastating, there is still a way to stop foreclosure on your home. Contact a Utah foreclosure attorney today to file a case and protect your home from repossession.
Foreclosure attorneys work diligently to make sure your property is not seized. Your paralegal will review your financial situation and devise a plan that will suit both your needs – as well as your lender’s – so you do not have your home foreclosed. Your foreclosure lawyer may suggest mortgage modification, refinancing or even a temporary halt in payments, and since the process of foreclosing a property costs lenders money, they will most likely agree your paralegal’s proposal.
No matter what your reason is for defaulting, you can be sure that your case will end with the best possible outcome when you work with a top team of foreclosure lawyers in Utah. Call an acclaimed paralegal in your area today to discuss your options and fight for your rights.