1. The loan provider can then offer your home to gather the money you owe on your mortgage.
2. You can be forced out from the home.

- Demands for in advance payment for assistance
- Guarantees that the help will work and let you keep your home
- Being asked to transfer the title to your home, or other documents you do not comprehend
- High pressure sales tactics that push you to act right now

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

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

Most foreclosures in Utah are done without a lawsuit. They follow a procedure referred to as "" nonjudicial foreclosure." "This is also sometimes called a "" trustee sale." "The actions in a nonjudicial foreclosure are listed below.

If a house owner fails to make their monthly payment on time, their mortgage ends up being overdue. The loan is now in "" default"." The lender should offer the house owner a Notification of Delinquency and offer them the opportunity to make the past due payments.

The lender or loan servicer should mail a notice to the property owner offering them a minimum of thirty days to become present on the loan ("" treat 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 typically avoids a "" mortgage servicer" "from initiating a foreclosure till the borrower is more than 120 days past due on the loan. 12 CFR 1024.41

Within ten days of recording the Notice of Default at the County Recorder's office, the trustee mails a copy of the Notice of Default to anyone who has asked for a copy. You ought to be sent this notification. It is typically sent out by authorized mail, needing you to choose it up at the post workplace or sign for it. If you do not pick it up, the notification will likely still be valid. Utah Code 57-1-26( 2 )( a)

The Notice of Default provides you 3 months to become current on the payments, and any late fees, legal costs and collection fees. 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 notice, which it most likely does).
- publish the Notice of the Sale in a newspaper when a week for 3 weeks, and.
- post 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 hold off 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.

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

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

If you do not vacate the residential or commercial property following the foreclosure sale, the brand-new owner can take actions to evict you. The expulsion procedure starts with an Expulsion Notice. If you do not leave by the deadline provided in the notice, the new owner will go through the court system to evict you. See our web page on Eviction to learn more.

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

- is not the foreclosed property owner or the partner, kid, or parent of the foreclosed homeowner.
- negotiated their lease with the previous house owner as if they were complete strangers, without offering or receiving any unique favors, and.
- is needed to pay rent that is not significantly less than fair market rent for the residential or commercial property or the system's lease is reduced or subsidized due to a Federal, State, or regional aid.

12 USC 5220, note.

For additional information on the expulsion procedure see our page on evictions.

Getting help

Housing counselors

The Consumer Financial Protection Bureau has a list of housing therapists, searchable by ZIP code.

You can likewise get aid by 888-995-HOPE (4673) to speak with housing therapists available across the country.

Additional Foreclosure Resources

Consumer details on mortgages from the Consumer Financial Protection Bureau.

This page describes what a domestic foreclosure is, the actions involved in the process, and where to get help.

Foreclosure is the legal procedure a loan provider can utilize to take the title to your home. Usually loan providers start foreclosure proceedings when they believe you have not made your mortgage payments.

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

1. The loan provider 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 rip-offs and phony legal assistance

Facing foreclosure can be stressful, and searching for a silver bullet to solve your problems can be appealing. Scam artists could attempt to benefit from you throughout this time. Here are some warning signs that you might be handling a scam:

- Demands for in advance payment for aid.

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

- Being asked to transfer the title to your home, or other files you do not understand.

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


The Consumer Financial Protection Bureau has more details on foreclosure scams.

Try to exercise a payment plan

Typically, the property owner misses a payment and gets a notification of delinquency from the lender. If you want to keep your home and have gotten a notice of delinquency, or even if you have actually not received such a notification however can not make your full payment, contact your lending institution immediately to discuss your scenario and see if you can exercise a payment strategy or if they can customize your loan so you can afford the payments. Any contract or adjustment needs to be in writing. You may be able to get assist from a foreclosure therapist. Please see the Resources section at the bottom of this page.

If your mortgage is being collected by a mortgage "servicer," under federal law, they are required to follow a particular "loss mitigation" process to help homeowners who are having trouble making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation could look like and a web page on mortgage relief alternatives.

You can call your loan provider at any time in the foreclosure process, and up until your home is sold, there might be a possibility to work out a payment plan.

Foreclosure procedure and timeline

Most foreclosures in Utah are done without a court case. They follow a procedure known as "nonjudicial foreclosure." This is also in some cases called a "trustee sale." The actions in a nonjudicial foreclosure are listed below.

Step 1. Account delinquent

If a homeowner stops working to make their monthly payment on time, their mortgage ends up being overdue. The loan is now in "default." The loan provider ought to offer the property owner a Notice of Delinquency and offer them the chance to make the past due payments.

Step 2. Preforeclosure notification

The lending institution or loan servicer should mail a notification to the homeowner providing them at least thirty days to end up being existing on the loan (" treat the default") and provide them a "single point of contact" with which to speak concerning their loan. Utah Code 57-1-24.3

Federal law generally avoids a "mortgage servicer" from starting a foreclosure until the customer is more than 120 days overdue on the loan. 12 CFR 1024.41

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

The foreclosure procedure formally starts when the trustee (a third celebration, such as an escrow business, bank, or other banks, that holds the legal title to the residential or commercial property till you settle 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 tape-recording the Notice of Default at the County Recorder's office, the trustee sends by mail a copy of the Notice of Default to anyone who has actually requested a copy. You need to be sent this notice. It is generally sent by authorized mail, needing you to select it up at the post office or sign 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 charges, legal fees and collection charges. This is in some cases 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 Notice of Sale and:

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

- release the Notice of the Sale in a newspaper 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 postpone or stop the sale and cancel the Notice of Default by paying the whole loan balance along with legal fees and other costs connected with the foreclosure.

Step 5. Foreclosure sale

At the foreclosure sale, the residential or commercial property will be sold to the greatest bidder, which is normally the bank that is foreclosing on your mortgage. At the sale, the bank does not need to bid cash. It can bid the amount that you owe them and alleviate you of all additional monetary obligation. If the credit bid is the greatest quote at the sale, the residential or commercial property then becomes owned by the lender.

Step 6. Deficiency judgment following sale

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 deficiency, the loan provider can sue you in court for the distinction in between what you owe on the loan and the amount the residential or commercial property was cost, plus their expenditures. The lender must sue you within 3 months after the sale. The quantity of the deficiency judgement is restricted to the difference in between your total debt on the residential or commercial property and the residential or commercial property's reasonable market worth. Utah Code Ann. § 57-1-32

Excess earnings from trustee's sale

If the home is sold for more than you owed on it, the trustee might transfer the excess profits with the district court in which the sale occurred and leave it to the court to decide who is entitled to those funds. You may be entitled to this money. See our Petition for Adjudication of Priority to Funds on Trustee's Sale web page to find out more and kinds.

Eviction following foreclosure

If you do not vacate the residential or commercial property following the foreclosure sale, the new owner can take steps to evict you. The expulsion process begins with an Eviction Notice. If you don't leave by the due date provided in the notification, the brand-new owner will go through the court system to evict you. See our webpage on Eviction for additional information.

Extra time for renters

A renter living in the home may be entitled to a 90 day notification before they can be forced out. The defense applies to mortgages that are federally associated. To get this extra time they need to show that they are a "authentic" tenant.