Utah Foreclosure Law Summary
Stop Utah Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instrument: Deed of Trust, Mortgage
- Timeline: Varies
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Utah, lenders may foreclose on a mortgage in default by using
the judicial foreclosure process.
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.
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".
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.
More information on Utah foreclosure laws.
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