Utah foreclosure is accomplished either in court or out of court, although out-of-court foreclosures are most common. The out-of-court foreclosure process takes about five months.
To begin a Utah foreclosure process in court, the lender must file a suit against the borrower for the amount in default. If the court finds that default has occurred, it determines the appropriate amount due on the loan and allows the borrower a set time to repay the debt plus costs, typically 30-60 days. If the borrower does not pay within the set time period, a public auction of the property is scheduled.
Most Utah foreclosure can be commenced without the court system. This is non-judicial foreclosure. The lender begins the foreclosure process by recording a Notice of Default, (NOD), with the county recorder. The lender must mail a copy of the NOD to the borrower. Once the notice of default is recorded, the borrower is allowed three months before the property is sold at public auction. During this time, the borrower can stop the foreclosure at any time by paying the amount in default plus any applicable costs.
In a Utah foreclosure, the borrower generally has the right to:
- a pre-foreclosure notice
- apply for loss mitigation
- receive certain foreclosure notices
- get current on the loan and stop the foreclosure sale
- receive special protections if the borrower or spouse is in the military
- pay off the loan to prevent a sale
- file for bankruptcy, and
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
Three months after the NOD is recorded and a minimum of 20 days before the sale date, a Notice of Sale is posted on the property. In addition, the lender is required to publish a Notice of Sale once a week for three consecutive weeks in a local newspaper. The last publication must be a minimum of 10 days, but not more than 30 days before the date of the sale.
Foreclosure sales are conducted as public auctions at the county courthouse where the property is located between the hours of 8 a.m. and 5 p.m., on a normal business day. The property is awarded to the highest bidder. If the sale price is above the amount owed to the lender, the extra funds go first to any junior lien holders and then to the borrower.
There is usually no redemption period for the borrower after an out-of-court foreclosure sale.