1. The loan provider can then sell your home to collect the cash you owe on your mortgage.
2. You can be evicted from the home.

- Demands for in advance payment for assistance
- Guarantees that the assistance will work and let you keep your home
- Being asked to sign over the title to your home, or other files you do not understand
- High pressure sales techniques that push you to act right away

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

If your mortgage is being collected by a mortgage "" servicer"," under federal law, they are needed to follow a specific "" loss mitigation" "process to help homeowners 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 choices.

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

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

The lending institution or loan servicer need to mail a notification to the property owner providing a minimum of 1 month to become current on the loan ("" treat the default"" )and supply them a "" single point of contact" "with which to speak concerning their loan. Utah Code 57-1-24.3

Federal law generally prevents a "" mortgage servicer" "from initiating a foreclosure till the customer is more than 120 days past due on the loan. 12 CFR 1024.41

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

The Notice of Default provides you three months to become present on the payments, and any late costs, legal costs and collection costs. This is sometimes called "" treating the default."

" -mail a copy to you a minimum of 20 days before the sale (if your deed of trust includes a demand for notification, which it probably does).
- release the Notice of the Sale in a paper 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 delay or stop the sale and cancel the Notice of Default by paying the whole loan balance in addition to legal fees and other fees related to the foreclosure.

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

If the home is offered for more than you owed on it, the trustee might deposit the excess earnings with the district court in which the sale occurred 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 for more info and forms.

If you do not leave 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 provided in the notice, the new owner will go through the court system to evict you. See our webpage on Eviction for more information.

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

- is not the foreclosed property owner or the partner, child, or moms and dad of the foreclosed property owner.
- negotiated their lease with the previous homeowner as if they were complete strangers, without giving or receiving any special favors, and.
- is required to pay rent that is not significantly less than fair market rent for the residential or commercial property or the system's rent is reduced or subsidized due to a Federal, State, or local subsidy.

12 USC 5220, note.

For more details on the eviction process see our page on expulsions.

Getting assistance

Housing counselors

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

You can also get assistance by 888-995-HOPE (4673) to consult 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 associated with the process, and where to get aid.

Foreclosure is the legal process a lender can utilize to take the title to your home. Usually lending institutions begin foreclosure proceedings when they believe you have actually not made your mortgage payments.

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

1. The loan provider can then sell your home to collect the cash you owe on your mortgage.

2. You can be kicked out from the home.

Keep an eye out for foreclosure scams and fake legal help

Facing foreclosure can be stressful, and looking for a silver bullet to fix your issues can be appealing. Scam artists might try to take benefit of you throughout this time. Here are some caution signs that you could be dealing with a rip-off:

- Demands for upfront payment for help.

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

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

- High pressure sales tactics that press you to act immediately.


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

Try to work out a payment strategy

Typically, the homeowner misses a payment and gets a notification of delinquency from the loan provider. If you want to keep your home and have actually gotten a notice of delinquency, or perhaps if you have not gotten such a notice but can not make your complete payment, contact your lender right away to describe your circumstance and see if you can exercise a payment plan or if they can customize your loan so you can pay for the payments. Any agreement or adjustment requires to be in writing. You may be able to get help from a foreclosure therapist. 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" process to assist homeowners who are having difficulty making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation might appear like and a web page on mortgage relief choices.

You can call your lender at any time in the foreclosure process, and till your home is offered, there may be a possibility to exercise a payment strategy.

Foreclosure procedure and timeline

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

Step 1. Account delinquent

If a house owner fails to make their month-to-month payment on time, their mortgage ends up being delinquent. The loan is now in "default." The loan provider ought to supply the property owner a Notice of Delinquency and provide the chance to make the past due payments.

Step 2. Preforeclosure notification

The lender or loan servicer must mail a notification to the homeowner providing them at least one month to become present 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 normally avoids a "mortgage servicer" from starting a foreclosure till the debtor 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 begins when the trustee (a third party, such as an escrow business, bank, or other banks, that holds the legal title to the residential or commercial property up until you pay off the amount you owe) records a Notice of Default at the County Recorder's workplace. 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 workplace, the trustee mails a copy of the Notice of Default to anyone who has actually requested a copy. You must be sent this notification. It is normally sent out by authorized mail, needing you to choose it up at the post workplace or indication for it. If you do not pick it up, the notice will likely still stand. Utah Code 57-1-26( 2 )( a)

The Notice of Default offers you three months to become current on the payments, and any late costs, legal fees and collection costs. This is often called "treating the default."

Step 4. Notice of trustee's sale

If you do not treat the default in the 3 month period, the trustee will tape-record a Notice of Sale and:

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

- publish the Notice of the Sale in a newspaper once 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 request 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 charges associated with the foreclosure.

Step 5. Foreclosure sale

At the foreclosure sale, the residential or commercial property will be offered to the greatest bidder, which is normally the bank that is foreclosing on your mortgage. At the sale, the bank does not have to bid cash. It can bid the quantity that you owe them and alleviate you of all further monetary duty. 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 expenses. The loan provider must sue you within 3 months after the sale. The amount of the deficiency judgement is limited to the difference between your overall debt on the residential or commercial property and the residential or commercial property's fair market price. 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 might 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 may be entitled to this cash. See our Petition for Adjudication of Priority to Funds on Trustee's Sale web page to learn 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 eviction procedure begins with an Expulsion Notice. If you don't leave by the deadline offered in the notice, the brand-new owner will go through the court system to evict you. See our website on Eviction to learn more.

Extra time for occupants

An occupant living in the home might be entitled to a 90 day notification before they can be kicked out. The defense uses to mortgages that are federally associated. To get this additional time they must reveal that they are a "bona fide" tenant.