Save Your Home From Foreclosure : Sell Fast:: Home Champs

Most Utah Foreclosure is non-Judicial (though judicial is allowed).

** This is not legal advice and should not be construed as such. Legal information should not take and was not intended to take the place of competent legal advice by a qualified attorney.

Quick Foreclosure Facts

Most Common Form of Foreclosure In Utah: Non Judicial
Is Judicial Foreclosure Available?: Yes
Primary Security Instrument: Deed of Trust or Trust Deed
Average Timeline Non Judicial: 4.5 months
Average Timeline Judicial: 8.5 months
Are Deficiency Judgments Allowed?: Yes
Length of Redemption Period (under trust deed): 90 days
Length of Redemption Judicial Foreclosure: Varies
When Do I Have To Leave My House?: After Sale of Property At Auction (generally not less than 120 days after filing of Notice of Default).

Utah Foreclosure statute has been in place since the early 1960's. Because the private power of sale has been conferred on trustees of real estate Trust Deeds by Utah Code, Trust Deeds in Utah are foreclosed non-judicially. The entire process takes approximately four and one-half months (though some have taken considerably longer).

Judicial foreclosure is allowed in Utah but due to the added expense and time involves it is not very common and is invoked mainly in private contract sales where there is not trust deed or deed of trust involved.

The foreclosure work is commenced by the attorney on a file once a referral package is received. This would generally include a current status on the loan showing amounts in arrears and fees if any, copies of the Trust Deed Note, Trust Deed, all assignments, title policy and Mortgage Insurance Certificate (if available) and possibly the Substitution of Trustee. package includes the Substitution of Trustee.

A notice of default and a substitution of trustee is generally prepared by the lender's attorney within 10 business days. This may take longer however it a substitution of trustee takes place and packages have to be over-nighted for signatures.

After recording the Substitution of Trustee and Notice of Default, copies of these papers must be mailed to the Trustors (generally the home owner), as well as all others who have recorded a written request for the receipt of any notices filed, within 10 days of the recording date. As a matter of practice, notices are mailed to all persons appearing to have an interest in the property as determined by the foreclosure title report.

In simple terms this means anyone that has a recorded interest in the property such as lien holders and possibly others that have had a judgment recorded against the home owner and possibly recorded against the property.

Power of the Trustee and Utah Foreclosure.

Utah law states that the trustee is given the power of sale by which the trustee may exercise and cause the trust property to be sold, after a breach of an obligation for which the trust property is conveyed as security; or, at the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property. The power of sale may be exercised by the trustee without express provision for it in the trust deed.

In simple terms this means that the Trustee has the right (within the confines of the law) to sell the house or property at auction for unpaid debt on the property.

Utah Foreclosure Notice of Default.

THE TRUSTEE MAY NOT USE THE POWER OF SALE UNTIL AFTER THE FOLLOWING HAS TAKEN PLACE:
(1) the trustee first files for record, in the office of the recorder of each county where the trust property or some part or parcel of the trust property is situated, a notice of default, identifying the trust deed by stating the name of the trustor (generally the property owner) named in the trust deed and giving the book and page, or the recorder's entry number, where the trust deed is recorded and a legal description of the trust property, and containing a statement that a breach of an obligation for which the trust property was conveyed as security has occurred, and setting forth the nature of that breach and of the trustee's election to sell or cause to be sold the property to satisfy the obligation;
(2) not less than three months has elapsed from the time the trustee filed for record under Subsection (1); and
(3) after the lapse of at least three months the trustee shall give notice of foreclosure sale

The law is very specific and everything must be done correctly or the process may have to start over again.

Notice of Trustee's Sale - The Particulars.

(All of the following must be done correctly before the sale can take place)

The trustee shall give written notice of the time and place of Utah foreclosure sale particularly describing the property to be sold:

Utah foreclosure

Utah Foreclosure Notice of Trustee's Sale

The following described property will be sold at public auction to the highest bidder, payable in lawful money of the United States at the time of sale, at (insert location of sale) ________________on __________(month\day\year), at __.m. of said day, for the purpose of foreclosing a trust deed originally executed by ____ (and ____, his wife,) as trustors, in favor of ____, covering real property located at ____, and more particularly described as: (Insert legal description)

The current beneficiary of the trust deed is ______________________ and the record owners of the property as of the recording of the notice of default are _________________ and ____________________. Dated __________(month\day\year). _______________

Trustee

The Trustors, fee title owner or any creditor has the right to reinstate the loan delinquency within three months after the date of recording by paying all delinquent installments, late charges, inspection fees and the foreclosure fees and costs.

If not reinstated during this three month period, the property/matter is set for a Trustee's Sale which takes place four or five weeks after the end of the reinstatement period. It is optional with the beneficiary whether a reinstatement will be accepted after the three month reinstatement period has ended. However, the V.A. regulations require the beneficiary to accept a reinstatement right up to the time of sale, and H.U.D. strongly recommends it (many if not most lenders would prefer to reinstate the loan rather than take it to a trustee's sale even up to the last moments before sale).

After the sale takes place, a Trustee's Deed to the successful bidder will be prepared. This is usually the beneficiary of the loan. If it is a H.U.D or V.A. backed loan then it would be to H.U.D or V.A.. Trustee's Deeds on conventional loans are prepared and sent for recording usually within one week following the sale. On V.A. loans, the Trustee's Deed is recorded in the name of the beneficiary and a Special Warranty Deed from the beneficiary to the V.A. is subsequently recorded. The V.A. requires that both deeds be recorded within seven days following the date of sale. Due to H.U.D. regulations that need to be met, the Trustee's Deeds on F.H.A. loans is prepared immediately, but awaits approval before being recorded.

Occasionally the foreclosure process is interrupted or stalled by bankruptcy, an eviction, or title problems.

Though the term "Mortgage" is common mortgages are not very common themselves. Foreclosure of a mortgage requires court action. A very small percent of loans in Utah are secured by Mortgages rather than Trust Deeds. The process of foreclosing a Mortgage can take double the time required for a trust deed and is much more expensive generally speaking.

Utah Foreclosure Timeline (non judicial only).

Starting with the Notice of Default

Week 1

A notice of default is prepared and sent to the borrower (generally by certified or overnight mail) and a copy is recorded at the courthouse where the property exists. The three month (90 days) period where the trustor/homeowner may redeem the property begins.

Generally once the Notice of Default documents are recorded, a foreclosure title report is ordered by the trustee. A conformed copy of the recorded Notice of Default and Substitution of Trustee are mailed to the original Trustors (borrowers), present owners, and all other parties with a recorded interest by certified mail.

Week 15

At the end of the 90 Day redemption period the notice period prior to the sale begins. The Trustee's Sale is usually held approximately four to five weeks after the redemption/reinstatement period ends.

The Notice of Trustee's Sale is mailed to the original trustors, present owners, and all other parties with a recorded interest by certified mail.

The Notice of Trustee's Sale must be published in a newspaper having general circulation within the county the property is located, once a week for three consecutive weeks.

The last publication in the newspaper must be at least 10 days prior but not more than 30 days prior to the Utah foreclosure sale. The Notice of Trustee's Sale must also be posted on the property and 3 other public places within the same county the property is located at least 20 days prior to the sale.

Week 20

The Trustee's Sale is held and a Trustee's Deed is prepared conveying the property to the highest bidder at the sale. It is not uncommon for a lender to bid up to the amount due them. at the sale in order to recover monies owed.

Title 57-1- of the Utah legal code covers the Sale of the Trust Property

57-1-27. "Sale of trust property by public auction -- Postponement of sale.
57-1-28.

(1) (a) On the date and at the time and place designated in the notice of sale, the trustee or the attorney for the trustee shall sell the property at public auction to the highest bidder. The trustee, or the attorney for the trustee, may conduct the sale and act as the auctioneer.

The trustor, or the trustor's successor in interest, if present at the sale, may direct the order in which the trust property shall be sold, if the property consists of several known lots or parcels which can be sold separately. The trustee or attorney for the trustee shall follow these directions. Any person, including the beneficiary or trustee, may bid at the sale.

The trustee may bid for the beneficiary. Each bid is considered an irrevocable offer.

If the highest bidder refuses to pay the amount bid by the highest bidder for the property, the trustee, or the attorney for the trustee, shall either:

After The Sale

The new owner takes possession of the property. If the property is inhabited or the previous owner is still living there an eviction proceeding may take place in order to vacate the property for the new owners. This will generally take about 3 weeks.

Foreclosure Glossary

Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."

Notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the borrower's property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.

Trustee is a legal term that refers to a holder of property on behalf of some other beneficiary such as a bank, holder of a trust deed or beneficiary of such. This is the person who files notices and conducts the sale of the property.

Redemption Period is the period in which the homeowners/trustors can make up back payments, legal fees etc. and re-instate their home loan.

Foreclosure Auction is the sale at which property that has been secured by a trust deed or deed of trust is sold to satisfy the borrowers obligation to the lender.