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Utah Foreclosure Law Summary
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.
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