Utah Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instrument: Deed of Trust, Mortgage
- Timeline: Varies
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Utah may foreclose on deeds of trusts and mortgages in default using either a judicial or non-judicial process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. Under a court-ordered sale, the borrower may be granted a redemption period.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
If the deed of trust or mortgage has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause does not clarify the time, place and terms of sale, then a foreclosure sale is conducted as follows:
- Once a week for three (3) consecutive weeks, a notice of sale must be published in a newspaper 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 prior to the scheduled date of sale.
- The notice is also posted, in a noticeable location on the property that is to be sold and at the office of the country recorder at least twenty (20) days prior to sale.
- There is a redemption period for borrowers provided under Utah law; however, that time frame is not set because the court has the power to extend that period of time as they see fit.
The lender can pursue a deficiency judgment against the borrower for the difference between the amount the borrower owed on the original loan and the foreclosure sale price. Additionally, the lender may be able to seize the property until the difference in amount owing is settled.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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