How the Foreclosure is Initiated in Utah
Once a Borrower is in default or breach of the contract, the Lender may request the trustee to exercise the power to sell the real property in order to satisfy the outstanding debt. U.C.A. §57-1-23. The trustee will file a Notice of Default and Election to Sell in the county recorder where the property is located to notify the Borrower and all other interested parties that the Borrower is in breach and/or default and that the Lender intends to foreclose on the property. The Notice of Default should contain the following information:
Time Frames and Conduct of Sale
A three-month period must elapse after recording of the Notice of Default before the trustee can give notice of the sale. U.C.A. §57-1-24(2). The trustee must mail by registered mail the Notice of Default to the Trustor (Borrower) and to any person who requested such notice. After three months from the recording of the Notice of Default, the trustee may give written Notice of Sale by publishing it once a week for at least 3 consecutive weeks, posting the Notice of Sale on the property, posting the Notice of Sale in 3 public places for at least 20 days, and mailing the Notice of Sale to the Trustor (Borrower) and to any party which had requested notice. 10-30 days after the last publication, the Trustee may hold the sale between 9:00 am and 5:00 pm. The property must be sold at the courthouse in the county where the real property is located. U.C.A. §57-1-25
Postponement of the Foreclosure
The Trustee “may for any cause he deems expedient, postpone the sale from time to time” at any time prior to the actual sale. U.C.A. §57-1-27.
Reinstatement of the Mortgage
Subject to U.C.A. §57-1-31, the Trustor (Borrower) may cure the default and/or breach by paying the arrearages and costs.
Borrower’s Liability if there is a Deficiency
The Lender at any time within 3 months after the sale may sue the Borrower for the deficiency. The Deficiency shall be limited to the lesser of:
If the Lender conducting the foreclosure does not bring an action in the appropriate court within 3 months of the sale date, then the lender has waived its right to recover the deficiency. However, if there are junior lien holders, then may have a 6 year statute of limitations to sue for their respective deficiencies.
Distribution of the Proceeds of the Sale
Pursuant to U.C.A. §57-1-29, the trustee shall pay the proceeds of the sale as follows in the following order:
To find out more about the foreclosure process in Utah, contact us by Phone at (801) 432-8682 or email.