Utah Foreclosure Law and Timeline

Understanding Utah foreclosure law is critical if you are late making payments on your mortgage or your home is about to be foreclosed. Two foreclosure processes are recognized in the state of Utah: a judicial and a non-judicial process. How closely the foreclosure guidelines are followed is a determination made by the lender and its attorney. The Deed of Trust, more commonly referred to as a mortgage, is the primary instrument used in the non-judicial foreclosure process in Utah.

The non-judicial Utah foreclosure process consists of four steps:

Step #1: Lender Reports Late Payments to Credit Bureaus

A mortgage is an agreement between you and the lender, requiring that you make monthly payments over a period of time specified in the mortgage to pay back the money you borrowed to purchase your home.

In Utah, lenders typically allow borrowers an additional 10 to 15 days (called a “grace period”) after the date on which monthly payments are due to make a payment. The lender may typically give you a reminder call if a payment is 30 days late and assess a late charge. Your credit is affected at this point because the lender will report the 30-day late payment to the credit bureaus. And every 30 days thereafter that you fail to make a mortgage payment, the lender will report this failure and start demanding payment in full. This means that, instead of being given the option of catching up by making several payments; you will be required to pay the sum total of the payments you missed.

You will start receiving collection-agency phone calls after 45 days because the lender has now instituted formal collection proceedings with an attorney. Your lender will next presume that you have defaulted on your loan once you haven’t made payments after 60 to 90 days later, at this point the lender will take formal action under Utah law to foreclose your home.

Step #2: A 90-Day Reinstatement Period Begins

Once you have received a notice of default on the mortgage from the lender, the foreclosure becomes part of the public record under Utah foreclosure law. However, you have 90 days to get the loan reinstated by paying all the late payments you owe, as well as interest, attorney fees, and late charges.

Step #3: Final Right of Redemption Period Begins

The trustee will record a Notice of Trustees’ Sale when the 90-day reinstatement period has passed, and you still haven’t made all payments that are due on the mortgage. At this point, a three-week “final right of redemption” period begins, and a notice of trustees’ sale is placed on the property. In addition, the date, time, and location of the sale are published in a newspaper with regular circulation for a period of three weeks. It’s possible the lender may accept the late payments, fees, interest, and other charges needed to bring the loan current and halt the foreclosure, but there is no guarantee this will happen.

Step #4: The Auction of Your Home Takes Place

The last stage of the Utah foreclosure process, after the final right of redemption period has passed occurs when your home is auctioned, typically, at the County Courthouse. You’ll only have a short time to vacate the premises as you no longer own the property. The foreclosure will also remain on your credit report for a period of seven years. Because of this blot on your credit history, it will be difficult for you to obtain any kind of credit or even rent a home during that seven-year period.

Statutes governing Utah foreclosure law are found in Title 57 of the Utah code chapter one.

For more information about foreclosure and foreclosure law, read this article: Foreclosure and Credit Score.

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Filed under: Utah Foreclosures

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