The Utah Foreclosure Process

The foreclosure process in Utah normally begins when the borrower becomes delinquent. Delinquent status depends on the terms of your Note, the lender's internal policies and the requirements of any investor (e.g. Fannie Mae or Freddie Mac). Typically, the foreclosure is commenced when a loan becomes three months delinquent.

The foreclosure process generally begins by the holder of the Note appointing a trustee to record a Notice of Default with the county recorder of the county where the property is located. From the date of the recording of the notice of default, the borrower has 3 months to reinstate or pay off the loan. At the conclusion of the 3-month reinstatement period, if the loan has not been brought current, a foreclosure trustee sale date is set. A notice of the sale is sent to the borrowers and posted on the property. It is also posted at the County Recorder's Office of the county where the property is located and published in a newspaper having general circulation in the county. The actual foreclosure sale is held by auction at a time and place specified on the notice of sale, generally the county courthouse where the property is located. The opening bid is set by the foreclosing note holder. The trustee appointed by the note holder, or an attorney representing the trustee, conducts the foreclosure sale.

The attorney conducting the foreclosure sale will purchase the property on behalf of the lender, if no bid higher than the opening bid is presented. If there is competitive bidding, the property is sold to the highest bidder. The successful bidder must deliver $5,000 in the form of a cashier's check, wire transfer or money order at the time of the sale to the trustee or attorney conducting the sale. The balance of the purchase price, in the same form, must be delivered within 24 hours.