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 when 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 time to pay the delinquent amount, plus costs. If the borrower does not pay within the specified 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 the property to pay off the balance on loan in the event of 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:
Notice Provisions Strictly Construed
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 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 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.
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.
