In Utah, lenders may
foreclose on a mortgage in default by using the
judicial foreclosure process.
Utah Foreclosure
Laws: Judicial Foreclosure
The judicial foreclosure process is one in which the
lender must file a complaint against the borrower
and obtain a decree of sale from a court having
jurisdiction in the county where the property is
located before foreclosure proceedings can begin.
Generally, if the court finds the borrower in
default, they will give them a set period of time to
pay the delinquent amount, plus costs. If the
borrower does not pay within the set period of time,
the court will then order the property to be sold in
the manner of normal execution sales.
Utah Foreclosure
Laws: Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed
of trust. A "power of sale" clause is the clause in
a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the
balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale
exists, the power given to the lender to sell the
property may be executed by the lender or their
representative, typically referred to as the
trustee. Regulations for this type of foreclosure
process are outlined below in the "Power of Sale
Foreclosure Guidelines".
Utah Foreclosure
Laws: Power of Sale Foreclosure Guidelines
- If the deed of trust or mortgage contains a
power of sale clause and specifies the time,
place and terms of sale, then the specified
procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is
carried out as follows:
A notice of sale must be published once a week
for three (3) consecutive weeks in a newspaper
of general circulation in the county where the
property is to be sold. The last publication
must be at least ten (10) days but not more than
thirty (30) days before the date of sale is
scheduled.
The notice of sale must also be posted, at least
twenty (20) days before the date of sale is
scheduled, in some conspicuous place on the
property to be sold and at the office of the
county recorder of each county in which the
property is located.
The place of sale must be clearly advertised in
the notice of sale and the sale must be held
between the hours of 8 am and 5 pm.
Borrowers do have a right of redemption in Utah,
but the court may extend the redemption time past
the time allowed in regular judgments so there is no
set length of time.
It is possible to obtain a deficiency judgment
against the borrower for the difference between the
amount the borrower owed on the original loan and
the foreclosure sale price and the lender may be
able to seize the property until the differing
amount is paid.
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