Utah Foreclosure Laws

A Utah foreclosure can be administered either by judicial or non-judicial means. However, non-judicial foreclosures are common in Utah. Typical foreclosure timeline is about 5 months. A delay in the process is expected. This occurs when the borrower contests the lawsuit or files a bankruptcy claim. Another consideration is the court schedules or issuance of notices. For judicial and out-of-court foreclosures, a sale can be stopped if the borrower makes a full payment of unpaid loans plus any applicable costs.

Judicial And Non-Judicial Foreclosure Information

Under Utah foreclosure laws, a non-judicial foreclosure is applicable when the loan document contains a Power of Sale clause; otherwise, an in-court process takes place. This provision is signed by the borrower and means that the person is aware of the consequence in the event that terms in the contract are not met. This clause authorizes the lender to pursue a foreclosure sale to satisfy the borrower’s debt. In addition, this type of foreclosure can be obtained without a court order. To initiate an out-of-court foreclosure, the lender should file a Notice of Default in a county registrar. After that, a copy should be sent to the homeowner. The homeowner is given 3 months to settle outstanding balance. When the borrower fails to cure debt, a foreclosure is scheduled.

Judicial foreclosure laws in Utah require the lenders to file a lawsuit (lis pendens). The court has a final decision of the foreclosure and the sale date. A lis pendens serves as a recorded document which contains a public notice about an impending foreclosure on a property. At this point, the borrower is expected to settle debt. If the court finds sufficient evidence against the borrower, a sale will be scheduled.

Utah foreclosure laws supports after-sale statutory right of redemption. To reclaim ownership of a recently foreclosed property, a borrower has to make a full payment of the total unpaid loans plus any applicable costs. A redemption period may be extended by the court.

In the event that the proceeds of the sale is less than the amount of the loan, a lender can obtain deficiency judgment. When this deficiency action is granted to lender, the borrower has to pay for the difference between the amount of the property sold in the auction and the amount of the original loan.

Under the foreclosure laws in Utah, a sale is conducted in a form of a public auction. The property is auctioned off to the highest bidder. In the event that an extra income occurs, the amount is divided among junior lien holders and the borrower.

Notice Of Sale Utah

The first publication of the Notice of Sale should happen at no more than 30 days before the auction. In addition, the Notice should be published in a local weekly newspaper for 3 successive weeks. A copy of the Notice should be posted at the county courthouse.