Utah Foreclosure Laws: Process, Timeline and Your Rights

Both, but most Utah foreclosures are nonjudicial. A trustee under a trust deed has a power of sale and can sell the home without a court case (a "trustee sale"); at the lender's option, a trust deed can instead be foreclosed in court like a mortgage. According to the Utah State Courts, most foreclosures in Utah are done without a court case.

Before a notice of default is recorded on an owner-occupied home, the lender or servicer must designate a single point of contact and mail the homeowner a written notice of its intent to file a notice of default, stating the default, the itemized amount needed to cure it, and a cure date at least 30 days after the notice is sent. The trustee then records a notice of default with the county recorder and mails copies within 10 days to people who requested notice. After at least three months, the trustee gives notice of sale by publishing it in a newspaper at least once a week for three consecutive weeks (the last publication 10 to 30 days before the sale) and as required by Utah Code § 45-1-101 for 30 days before the sale, posting it on the property and at the county recorder's office at least 20 days before the sale, and mailing it to people who requested notice.

Minimums set by statute: the pre-default notice gives at least 30 days to cure before a notice of default is filed; at least three months must pass after the notice of default is recorded before notice of sale is given; and the notice of sale must be posted at least 20 days before the sale. The sale is held between 8 a.m. and 5 p.m. at a courthouse serving the county where the property is located.

Yes. In a trustee sale, the homeowner (or a junior lienholder) may reinstate the loan at any time within three months after the notice of default is recorded by paying the amount then in default (not the accelerated balance), plus allowed costs and fees. Before the notice of default, the servicer's pre-default notice must give at least 30 days to cure.

After a nonjudicial trustee's sale, the trustee's deed conveys the property to the buyer without a right of redemption. After a court-ordered (judicial) foreclosure sale, the property may be redeemed within 180 days after the sale by the defendant or a junior lienholder.

Yes, with limits. After a trustee's sale, the lender may sue for the remaining balance, but only within three months after the sale. The court must find the property's fair market value on the sale date, and the judgment cannot exceed the amount by which the debt (with interest, costs and sale expenses, including trustee's and attorney's fees) exceeds that fair market value. The prevailing party may recover costs and reasonable attorney fees.

The Utah State Courts explain that a bona fide tenant living in a foreclosed home may be entitled to a 90-day notice before being evicted, a protection that applies to federally related mortgages. A bona fide tenant is not the former owner or the owner's spouse, child or parent, negotiated the lease at arm's length, and pays rent not substantially below fair market rent (unless subsidized). For residential rental property, the notice of trustee's sale must also be posted on each unit's door or in conspicuous places, or mailed to occupants.

Yes. To enforce its lien for assessments, a community association may sell a lot through nonjudicial foreclosure as though the lien were a deed of trust, or foreclose through a judicial foreclosure like a mortgage. For nonjudicial foreclosure the association must appoint a qualified trustee. The association may also sue the owner for the amount owed or take a deed in lieu of foreclosure.

Property with delinquent property taxes may be redeemed by anyone on the record owner's behalf at any time before the county tax sale, which is held in May or June after four years have passed from the date the taxes became delinquent. To redeem, pay the county treasurer all delinquent taxes, tax notice charges, interest, penalties and administrative costs.

The Utah State Courts' foreclosure page refers homeowners to housing counselors listed by the Consumer Financial Protection Bureau (searchable by ZIP code) and to the national HOPE line, 888-995-HOPE (4673). It advises contacting the lender as early as possible about a payment plan or loan modification, in writing.