There are two types of Foreclosures. "Judicial" and "Non-Judicial". Utah is a "Non-Judicial" foreclosure state, which basically means the courts aren't involved in the process. This allows for a quicker foreclosure and is also less expensive for the lenders and homeowner's involved.
When someone obtains a mortgage on a property, there are typically at least two documents executed, known as a "Deed of Trust" and a "Note". Basically these documents specify the borrower's obligation to repay that mortgage and also give the lender the ability to "foreclose" on the property should the borrower default on their payment obligations.
The terms of a typical "Note" indicate the monthly payment is due on the 1st of the month, with a grace period until the 15th of the month. If a payment is not made after the 15th, late fees are charged and the payment is considered delinquent or in default. If the payment is still not made by the 30th of the month, the lender will report to the credit bureaus that there is a 30 day late. The lender also begins to get a little nasty with the borrower because of no payment, which nastiness increases with the duration of no payment. Letters are sent and phone calls made “urging” the borrower to bring payments current.
If still no payment is made after 90-120 days, the lender typically begins to really get serious, and the word FORECLOSURE is introduced in a letter called “intent to foreclose”. If there is still no response or payment from the borrower, the lender will contact a local foreclosure attorney, to begin their legal right to foreclose. This foreclosure attorney is now known as the Trustee for the lender. Of course, all legal fees charged by the Trustee are added to what is owed by the borrower. The Trustee will very soon file a “Notice of Default” at the county recorders office, and also publishes the notice in the local newspaper. Now the borrower’s situation is public record. Anyone who wants to know about the borrower’s significantly late payment(s), can do it without much effort. At this same time, the borrower is served a notice of default by certified mail. Now the foreclosure process has started, and the timeline goes as follows:
What has been described on the page is only a basic overview of the foreclosure process in Utah. It is extremely important that you understand how this process effects your individual situation. Please give us a call so we can discuss it. Please also view the "Knowing Your Options" page.