The foreclosure process in Utah utilizes a non-judicial system, and most foreclosure proceedings take place out of court. Typically, it takes at least 5 months for a bank to complete a foreclosure in Utah.
The foreclosure process in Utah begins when a borrower defaults on their monthly payment obligation. When a homeowner falls behind on their payments, the bank or lending institute files a notice of default with the county recorder. Once the notice of default is recorded on the property, the homeowner has 90 days to catch-up the payments or work out a repayment plan.
If after 90 days, the home is still in default, the lender has the legal right to foreclosure on the house. To foreclosure on a home in Utah, the bank holding the mortgage arranges for the home to be sold at a public county auction.
Legally, the bank must post a notice of sale on the property at least 20 days prior to the sale date, notifying the owner of the upcoming auction. The lender must also place notices in the local newspaper regarding the upcoming auction.
Foreclosure sales in Utah take place at the county courthouse where the property is offered to the highest bidder. The starting bid of a foreclosure is typically the amount owed to the bank. If there are no bidders then the ownership of the property is transferred to the bank and is then listed and sold as a foreclosure / REO home.
Help For Homeowners Facing Foreclosure
As a homeowner, HSC is on your side. If you are worried about foreclosure and are in need of assistance, the professionals at Homeowners Servicing Company can educate you on your options.
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