Utah’s Foreclosure Process
What is Foreclosure?
Foreclosure is a process in which a bank, mortgage company, or other lien holder seeks to take an owner’s property to satisfy a debt. The bank or lender may actually take ownership of the property or have the property sold to pay off the debt. As a result of the foreclosure, the owner loses whatever rights he or she had in the property.
Utah’s Foreclosure Process
- The foreclosure process begins when the borrower stops making payments on the loan.
- At some point after falling behind on your house payment, your bank/lender will start the collections process. They will contact you with a series of letters or phone calls trying to collect missed payments. The point in time at which this process begins varies greatly depending on who your lender is, and how many other default loans they are processing. Usually this process begins about 90-120 days after your last payment was received.
- If payment cannot be collected, the lender will file a Notice of Default (NOD) with the county recorders office. The borrower will receive a copy of the notice via certified mail.
- If the borrower does not reinstate the loan by paying the full amount in default plus interest and fees within the “Three Month Cure Period” the bank will schedule a Trustee Sale.
- Three months after the Notice of Default was recorded and at least twenty days before the scheduled foreclosure sale, the lender will post notice of the foreclosure sale on the property, on the internet, and in the newspaper. This notice will specify the date, time, and location of the foreclosure sale.
- The foreclosure sale takes place at the specified date and time and the property is officially foreclosed.
The Bottom Line
From the time the lender initiates the foreclosure process by recording the Notice of Default, the borrower has a little less than four months before the property is foreclosed upon.
Help
If you are facing foreclosure, all hope is not lost. There are several paths you can take to reduce the damage to your credit and possibly to save your home. Please contact us and we will be happy to discuss your options with you. As always, we are happy to help with all of your Utah real estate needs.
