The Foreclosure Process in Utah – Understanding The Process

Understanding the foreclosure process in Utah

Understanding the foreclosure process in Utah is an important part of  knowing what you can or can’t do when navigating your own home foreclosure.

Before we get started…

What is a foreclosure and how does it effect me anyway?

Foreclosure is when a Bank can take back a property due to non payment. It is the legal process that is used to secure a loan and usually will start with a notice of default.

Foreclosure process is not a fund ordeal.  Remember that it is not the end of the world.

When you understand the process of  how a foreclosure in Utah works… it allows you to understand what you can and can’t do and it will help you in the end.

The Basic Process of A Foreclosure

There’s a few steps to understand to any foreclosure process.

The Foreclosure process works differently in most states and around the United States.

The two ways that Utah forecloses on a property are: judicial sale and Non-judicial.

Connect with us by calling (801) 441-2800 or through our contact page to have us walk you through the specific foreclosure process here locally in Utah.

In most cases, the foreclosure process typically doesn’t go to court or even start until 3-6 months of missed payments. Usually (but not always), a mortgage institution will file a “notice of default” and send out many notices that you are in arrears – overdue or behind in your mortgage payments.

Under Judicial Foreclosure:

  • Your mortgage lender or lien holder must file a suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • If the letter is valid, you’ll have 30 days to bring the payment to the court so you will avoid the foreclosure (and sometimes that can be extended).
  • If you don’t make payments during the initial period, a judgment will be noted and the lender can ask for the sale of your property – usually through an auction.
  • When the property has been sold, the sheriff will serve an eviction notice and will force you to vacate the property immediately.

Under Non Judicial Foreclosure:

  • The mortgage lender or the assign Trustee will serves you with papers demanding payment, and the court system is not necessary– although the process may be subject to judicial review.
  • Once the timeline has been established or the waiting period has gone by, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The person assigned to be the trustee can then sell your property for the lender at a public auction (notice must be given).

Everyone who has an interest in the property or has a lien must be notified by either type of foreclosure.

For example, any lien holder like a contractor or bank who has filed a claim against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Sale?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, when the sale of the property goes to auction there isn’t enough to money to pay off the loan, a deficiency judgment can be given to the borrower.

A deficiency judgement is when the lender receives a judgement against you, the home owner, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.


In Some states the deficiency is limit to the amount of the fair market value of the property at the time of sale, while other states will allow the full amount owed to be issued against the borrower.

Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.

Generally, it’s best to avoid a foreclosure auction. The best thing to do is, call up the Lender, or work with a reputable real estate investor like us at to help you negotiate discounts off the deficiency amount or to avoid a foreclosure on the house.

Experienced home buyers like us can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

If you need to sell a property near Salt Lake City and surrounding areas, we can help you.

We buy houses in Utah like yours from people who need to sell fast.

Give us a call anytime (801) 441-2800 or
fill out the form on this website today! >>


Other Foreclosure Resources For Utah HomeOwners:

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