1. The lending institution can then sell your home to gather the cash you owe on your mortgage.
2. You can be forced out from the home.

- Demands for in advance payment for aid
- Guarantees that the assistance will work and let you keep your home
- Being asked to sign over the title to your home, or other documents you don't understand
- High pressure sales tactics that press you to act right now

The Consumer Financial Protection Bureau has more information on foreclosure rip-offs.

If your mortgage is being gathered by a mortgage "" servicer"," under federal law, they are needed to follow a particular "" loss mitigation" "procedure to assist property owners who are having difficulty making their mortgage payments. The Consumer Financial Protection Bureau has information about what loss mitigation might look like and a web page on mortgage relief options.

Most foreclosures in Utah are done without a lawsuit. They follow a process called "" nonjudicial foreclosure." "This is likewise sometimes called a "" trustee sale." "The steps in a nonjudicial foreclosure are listed below.

If a homeowner fails to make their monthly payment on time, their mortgage becomes delinquent. The loan is now in "" default"." The loan provider needs to provide the property owner a Notice of Delinquency and give them the opportunity to make the past due payments.

The loan provider or loan servicer need to send by mail a notification to the homeowner giving them at least 30 days to become current on the loan ("" treat the default"" )and provide them a "" single point of contact" "with which to speak regarding their loan. Utah Code 57-1-24.3

Federal law usually prevents a "" mortgage servicer" "from starting a foreclosure till the borrower is more than 120 days overdue on the loan. 12 CFR 1024.41

Within ten days of tape-recording the Notice of Default at the County Recorder's office, the trustee mails a copy of the Notice of Default to anybody who has actually requested a copy. You must be sent this notification. It is generally sent by registered mail, requiring you to select it up at the post workplace or indication for it. If you do not pick it up, the notification will likely still stand. Utah Code 57-1-26( 2 )( a)

The Notice of Default gives you three months to end up being existing on the payments, and any late charges, legal costs and collection charges. This is sometimes called "" curing the default."

" -mail a copy to you at least 20 days before the sale (if your deed of trust includes an ask for notification, which it most likely does).
- publish the Notice of the Sale in a paper when a week for three weeks, and.
- publish the Notice of Sale on the residential or commercial property at least 20 days before the sale. Utah Code 57-1-26( 2 )( b) and Utah Code 57-1-25

You can ask for that the trustee hold off or stop the sale and cancel the Notice of Default by paying the entire loan balance along with legal fees and other charges related to the foreclosure.

Sometimes the residential or commercial property will offer for less than what you owe on the loan. This is called a shortage. If there is a shortage, the loan provider can sue you in court for the difference in between what you owe on the loan and the quantity the residential or commercial property was cost, plus their expenditures. The loan provider needs to sue you within three months after the sale. The amount of the deficiency judgement is limited to the difference in between your total financial obligation on the residential or commercial property and the residential or commercial property's reasonable market worth. Utah Code Ann. § 57-1-32

If the home is cost more than you owed on it, the trustee might deposit the excess proceeds with the district court in which the sale took place and leave it to the court to decide who is entitled to those funds. You might be entitled to this money. See our Petition for Adjudication of Priority to Funds on Trustee's Sale websites to learn more and forms.

If you don't leave the residential or commercial property following the foreclosure sale, the new owner can take actions to evict you. The expulsion process begins with an Expulsion Notice. If you do not leave by the due date given up the notice, the new owner will go through the court system to evict you. See our website on Eviction to learn more.

An occupant living in the home might be entitled to a 90 day notification before they can be evicted. The protection uses to mortgages that are federally related. To receive this additional time they need to show that they are a "" authentic" "tenant. A bona fide occupant:

- is not the foreclosed property owner or the partner, child, or moms and dad of the foreclosed homeowner.
- negotiated their lease with the previous house owner as if they were strangers, without giving or receiving any unique favors, and.
- is needed to pay lease that is not substantially less than fair market lease for the residential or commercial property or the system's lease is minimized or supported due to a Federal, State, or regional subsidy.

12 USC 5220, note.

For additional information on the eviction procedure see our page on expulsions.

Getting aid

Housing counselors

The Consumer Financial Protection Bureau has a list of housing counselors, searchable by postal code.

You can also get help by 888-995-HOPE (4673) to talk to housing counselors readily available across the country.

Additional Foreclosure Resources

Consumer details on mortgages from the Consumer Financial Protection Bureau.

This page discusses what a property foreclosure is, the actions involved in the process, and where to get assistance.

Foreclosure is the legal process a loan provider can use to take the title to your home. Usually lending institutions start foreclosure procedures when they think you have actually not made your mortgage payments.

Once foreclosure is complete you no longer own your home and two things can happen:

1. The lender can then offer your home to gather the cash you owe on your mortgage.

2. You can be kicked out from the home.

Look out for foreclosure scams and phony legal assistance

Facing foreclosure can be difficult, and searching for a silver bullet to fix your issues can be tempting. Scam artists could try to take benefit of you throughout this time. Here are some indication that you could be handling a rip-off:

- Demands for in advance payment for help.

- Guarantees that the help will work and let you keep your home.

- Being asked to sign over the title to your home, or other documents you do not understand.

- High pressure sales techniques that push you to act right now.


The Consumer Financial Protection Bureau has more details on foreclosure rip-offs.

Try to work out a payment strategy

Typically, the house owner misses a payment and gets a notice of delinquency from the lending institution. If you desire to keep your home and have gotten a notification of delinquency, or perhaps if you have actually not received such a notification but can not make your full payment, call your loan provider right away to discuss your circumstance and see if you can exercise a payment plan or if they can modify your loan so you can pay for the payments. Any arrangement or adjustment requires to be in composing. You may be able to get assist from a foreclosure counselor. Please see the Resources section at the bottom of this page.

If your mortgage is being gathered by a mortgage "servicer," under federal law, they are required to follow a particular "loss mitigation" procedure to assist house owners who are having difficulty making their mortgage payments. The Consumer Financial Protection Bureau has information about what loss mitigation might appear like and a website on mortgage relief choices.

You can call your lender at any time in the foreclosure procedure, and till your house is offered, there may be a chance to work out a payment strategy.

Foreclosure process and timeline

Most foreclosures in Utah are done without a lawsuit. They follow a process referred to as "nonjudicial foreclosure." This is likewise often called a "trustee sale." The steps in a nonjudicial foreclosure are below.

Step 1. Account overdue

If a property owner fails to make their month-to-month payment on time, their mortgage ends up being overdue. The loan is now in "default." The lending institution ought to supply the homeowner a Notification of Delinquency and provide the opportunity to make the past due payments.

Step 2. Preforeclosure notification

The loan provider or loan servicer should send by mail a notification to the homeowner giving them at least one month to end up being current on the loan (" cure the default") and offer them a "single point of contact" with which to speak concerning their loan. Utah Code 57-1-24.3

Federal law normally prevents a "mortgage servicer" from starting a foreclosure up until the debtor is more than 120 days past due on the loan. 12 CFR 1024.41

Step 3. Notice of Default (Utah Code 57-1-24)

The foreclosure process formally starts when the trustee (a 3rd party, such as an escrow business, bank, or other financial organization, that holds the legal title to the residential or commercial property until you pay off the amount you owe) records a Notification of Default at the County Recorder's office. The Notice of Default is various from the Notice of Delinquency.

Within ten days of taping the Notice of Default at the County Recorder's workplace, the trustee mails a copy of the Notice of Default to anybody who has requested a copy. You should be sent this notice. It is normally sent out by authorized mail, requiring you to pick it up at the post office or indication for it. If you do not pick it up, the notification will likely still stand. Utah Code 57-1-26( 2 )( a)

The Notice of Default gives you 3 months to become existing on the payments, and any late fees, legal charges and collection charges. This is often called "treating the default."

Step 4. Notice of trustee's sale

If you do not cure the default in the three month period, the trustee will record a Notification of Sale and:

- mail a copy to you a minimum of 20 days before the sale (if your deed of trust consists of a request for notification, which it most likely does).

- publish the Notice of the Sale in a newspaper when a week for 3 weeks, and.

- publish the Notice of Sale on the residential or commercial property a minimum of 20 days before the sale. Utah Code 57-1-26( 2 )( b) and Utah Code 57-1-25.


You can ask for that the trustee postpone or stop the sale and cancel the Notice of Default by paying the entire loan balance along with legal charges and other costs related to the foreclosure.

Step 5. Foreclosure sale

At the foreclosure sale, the residential or commercial property will be offered to the highest bidder, which is typically the bank that is foreclosing on your mortgage. At the sale, the bank does not need to bid money. It can bid the quantity that you owe them and relieve you of all further financial obligation. If the credit bid is the greatest bid at the sale, the residential or commercial property then becomes owned by the loan provider.

Step 6. Deficiency judgment following sale

Sometimes the residential or commercial property will sell for less than what you owe on the loan. This is called a shortage. If there is a deficiency, the lender can sue you in court for the distinction between what you owe on the loan and the quantity the residential or commercial property was cost, plus their costs. The lending institution needs to sue you within 3 months after the sale. The quantity of the deficiency judgement is limited to the distinction in between your total financial obligation on the residential or commercial property and the residential or commercial property's fair market worth. Utah Code Ann. § 57-1-32

Excess profits from trustee's sale

If the home is cost more than you owed on it, the trustee may transfer the excess profits with the district court in which the sale happened and leave it to the court to choose who is entitled to those funds. You might be entitled to this money. See our Petition for Adjudication of Priority to Funds on Trustee's Sale websites for additional information and types.

Eviction following foreclosure

If you do not abandon the residential or commercial property following the foreclosure sale, the brand-new owner can take steps to evict you. The expulsion procedure starts with an Expulsion Notice. If you do not leave by the due date given in the notification, the brand-new owner will go through the court system to evict you. See our web page on Eviction for additional information.

Extra time for tenants

An occupant living in the home might be entitled to a 90 day notice before they can be kicked out. The security applies to mortgages that are federally associated. To receive this additional time they must show that they are a "bona fide" tenant.