- 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.
