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

- Demands for upfront 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 do not understand
- High pressure sales strategies that push you to act immediately

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 particular "" loss mitigation" "process to assist property owners who are having problem making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation might appear like and a webpage on mortgage relief alternatives.

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 steps in a nonjudicial foreclosure are listed below.

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

The loan provider or loan servicer must send by mail a notice to the house owner providing at least thirty days to become present on the loan ("" cure the default"" )and offer them a "" single point of contact" "with which to speak regarding their loan. Utah Code 57-1-24.3

Federal law normally prevents 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 taping 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 ought to be sent this notice. It is typically sent out by registered mail, needing you to pick it up at the post workplace or indication for it. If you do not choose it up, the notification will likely still stand. Utah Code 57-1-26( 2 )( a)

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

" -mail a copy to you at least 20 days before the sale (if your deed of trust consists of an ask for notice, which it most likely does).
- release the Notice of the Sale in a paper once a week for 3 weeks, and.
- post 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 request that the trustee hold off or stop the sale and cancel the Notice of Default by paying the whole loan balance in addition to legal fees and other costs associated with the foreclosure.

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 shortage, the lending institution 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 offered for, plus their costs. The lender must sue you within three months after the sale. The quantity of the deficiency judgement is limited to the distinction between your overall financial obligation 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 cost more than you owed on it, the trustee may transfer 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 might be entitled to this cash. See our Petition for Adjudication of Priority to Funds on Trustee's Sale web page for more details and forms.

If you don't 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 Eviction 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 webpage on Eviction for additional information.

An occupant living in the home might be entitled to a 90 day notification before they can be evicted. The security applies to mortgages that are federally related. To get this extra time they must reveal that they are a "" authentic" "tenant. An authentic occupant:

- is not the foreclosed house owner or the partner, child, or parent of the foreclosed property owner.
- negotiated their lease with the previous homeowner as if they were strangers, without offering or getting any unique favors, and.
- is required to pay lease that is not considerably less than reasonable market rent for the residential or commercial property or the system's rent is reduced or subsidized due to a Federal, State, or local aid.

12 USC 5220, note.

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

Getting assistance

Housing therapists

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

You can also get assistance by 888-995-HOPE (4673) to speak with housing counselors offered 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 steps involved in the process, and where to get assistance.

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

Once foreclosure is total you no longer own your home and two things can take place:

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

2. You can be evicted from the home.

Look out for foreclosure scams and phony legal help

Facing foreclosure can be demanding, and searching for a silver bullet to fix your problems can be appealing. Scam artists could attempt to take benefit of you during this time. Here are some indication that you could be dealing with a fraud:

- Demands for upfront payment for assistance.

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

- Being asked to sign over the title to your home, or other files you don't comprehend.

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


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

Try to exercise a payment plan

Typically, the house owner misses out on a payment and gets a notice of delinquency from the lending institution. If you desire to keep your home and have actually gotten a notification of delinquency, and even if you have not received such a notification however can not make your complete payment, contact your lender instantly to discuss your circumstance and see if you can exercise a payment strategy or if they can customize your loan so you can pay for the payments. Any agreement or adjustment requires to be in writing. You might be able to get assist from a foreclosure therapist. Please see the Resources area at the bottom of this page.

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 property owners who are having trouble making their mortgage payments. The Consumer Financial Protection Bureau has information about what loss mitigation might look like and a website on mortgage relief choices.

You can contact your lender at any time in the foreclosure process, and till your house is sold, there might be a chance to work out a payment strategy.

Foreclosure procedure and timeline

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

Step 1. Account delinquent

If a house owner fails to make their monthly payment on time, their mortgage ends up being delinquent. The loan is now in "default." The lending institution ought to provide the homeowner a Notice of Delinquency and give them the opportunity to make the past due payments.

Step 2. Preforeclosure notice

The lending institution or loan servicer must send by mail a notice to the house owner providing at least thirty days to become current on the loan (" cure 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 typically prevents a "mortgage servicer" from starting a foreclosure until the borrower 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 party, such as an escrow company, bank, or other banks, that holds the legal title to the residential or commercial property until you settle the amount you owe) records a Notice of Default at the County Recorder's workplace. The Notice of Default is different from the Notice of Delinquency.

Within 10 days of recording the Notice of Default at the County Recorder's office, the trustee sends by mail a copy of the Notice of Default to anybody who has asked for a copy. You should be sent this notification. It is normally sent out by registered mail, requiring you to choose it up at the post workplace or sign for it. If you do not choose it up, the notice will likely still stand. Utah Code 57-1-26( 2 )( a)

The Notice of Default offers you three months to end up being present on the payments, and any late charges, legal charges and collection costs. 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 tape a Notification of Sale and:

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

- release the Notice of the Sale in a newspaper as soon as a week for 3 weeks, and.

- post 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 request that the trustee hold off or stop the sale and cancel the Notice of Default by paying the whole loan balance as well as legal fees and other fees 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 usually the bank that is foreclosing on your mortgage. At the sale, the bank doesn't need to bid money. It can bid the quantity that you owe them and eliminate you of all more financial 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 deficiency. 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 cost, plus their expenditures. The lending institution must sue you within 3 months after the sale. The quantity 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 fair market price. Utah Code Ann. § 57-1-32

Excess profits from trustee's sale

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

Eviction following foreclosure

If you don't abandon the residential or commercial property following the foreclosure sale, the brand-new owner can take steps to evict you. The eviction procedure starts with an Expulsion Notice. If you do not leave by the deadline offered in the notification, the brand-new owner will go through the court system to evict you. See our webpage on Eviction for more details.

Extra time for occupants

An occupant living in the home may be entitled to a 90 day notification before they can be forced out. The security applies to mortgages that are federally associated. To receive this additional time they need to show that they are a "authentic" renter.