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

- Demands for in advance payment for help
- Guarantees that the help 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 techniques that press you to act right away

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

If your mortgage is being gathered by a mortgage "" servicer"," under federal law, they are needed to follow a specific "" loss mitigation" "process to help homeowners who are having problem making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation could appear like and a webpage on mortgage relief choices.

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

If a house owner stops working to make their regular monthly payment on time, their mortgage becomes overdue. The loan is now in "" default"." The loan provider needs to offer the house owner a Notice of Delinquency and provide the chance to make the past due payments.

The lender or loan servicer must mail a notice to the property owner providing a minimum of 1 month to become current 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 typically avoids a "" mortgage servicer" "from starting a foreclosure till the borrower is more than 120 days overdue on the loan. 12 CFR 1024.41

Within ten days of taping 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 need to be sent this notice. It is usually sent by authorized mail, needing you to choose it up at the post workplace or indication 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 gives you three months to end up being existing on the payments, and any late costs, legal charges 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 consists of a request for notice, which it probably does).
- publish the Notice of the Sale in a newspaper once 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 request that the trustee delay or stop the sale and cancel the Notice of Default by paying the whole loan balance along with legal charges and other charges related to the foreclosure.

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 lending institution can sue you in court for the difference between what you owe on the loan and the quantity the residential or commercial property was cost, plus their expenditures. The loan provider needs to sue you within three months after the sale. The quantity of the shortage judgement is limited to the distinction in 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 earnings 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 websites for more info and types.

If you do not abandon the residential or commercial property following the foreclosure sale, the brand-new owner can take actions to evict you. The expulsion process 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 website on Eviction for more details.

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

- is not the foreclosed property owner or the spouse, child, or parent of the foreclosed homeowner.
- negotiated their lease with the previous homeowner as if they were complete strangers, without providing 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 rent is minimized or funded due to a Federal, State, or local subsidy.

12 USC 5220, note.

To find out more on the expulsion procedure see our page on expulsions.

Getting help

Housing therapists

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

You can likewise get aid by 888-995-HOPE (4673) to talk with housing counselors offered throughout the country.

Additional Foreclosure Resources

Consumer info on mortgages from the Consumer Financial Protection Bureau.

This page discusses what a domestic foreclosure is, the steps included 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 lenders start foreclosure proceedings when they think you have actually not made your mortgage payments.

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

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

2. You can be evicted from the home.

Keep an eye out for foreclosure rip-offs and fake legal aid

Facing foreclosure can be demanding, and searching for a silver bullet to resolve your issues can be tempting. Scammer could try to make the most of you throughout this time. Here are some indication that you might be handling a fraud:

- Demands for upfront 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 don't comprehend.

- High pressure sales techniques that press you to act right now.


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

Try to exercise a payment strategy

Typically, the homeowner misses out on a payment and gets a notification of delinquency from the loan provider. If you desire to keep your home and have gotten a notification of delinquency, and even if you have not received such a notice but can not make your complete payment, call your lender immediately to describe your situation and see if you can exercise a payment strategy or if they can modify your loan so you can afford the payments. Any contract or modification requires to be in composing. You might be able to get help 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 required 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 details about what loss mitigation might look like and a webpage on mortgage relief choices.

You can call your lender at any time in the foreclosure process, and up until your home is offered, there might be an opportunity to work out a payment plan.

Foreclosure procedure and timeline

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

Step 1. Account overdue

If a homeowner 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 must provide the homeowner a Notification of Delinquency and provide them the opportunity to make the past due payments.

Step 2. Preforeclosure notice

The lender or loan servicer need to send by mail a notification to the property owner giving them at least one month to become current on the loan (" cure 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 usually avoids a "mortgage servicer" from initiating a foreclosure up 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 process formally starts when the trustee (a third party, such as an escrow company, bank, or other monetary institution, that holds the legal title to the residential or commercial property up until you pay off the quantity you owe) records a Notice of Default at the County Recorder's office. The Notice of Default is different from the Notice of Delinquency.

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 should be sent this notification. It is usually 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 notice will likely still stand. Utah Code 57-1-26( 2 )( a)

The Notice of Default gives you 3 months to become current on the payments, and any late costs, legal charges and collection costs. This is in some cases called "curing 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 Notification of Sale and:

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

- publish the Notice of the Sale in a paper when a week for three 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 whole loan balance as well as legal fees and other fees related to the foreclosure.

Step 5. Foreclosure sale

At the foreclosure sale, the residential or commercial property will be sold to the highest bidder, which is usually 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 highest bid at the sale, the residential or commercial property then ends up being owned by the lending institution.

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 difference in between what you owe on the loan and the amount the residential or commercial property was offered for, plus their costs. The lender must sue you within 3 months after the sale. The quantity of the shortage judgement is limited to the distinction in between your overall financial obligation on the residential or commercial property and the residential or commercial property's fair market worth. Utah Code Ann. § 57-1-32

Excess proceeds from trustee's sale

If the home is offered for more than you owed on it, the trustee may deposit the excess earnings 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 find out more and forms.

Eviction following foreclosure

If you don't leave the residential or commercial property following the foreclosure sale, the new owner can take actions to evict you. The eviction procedure starts with an Expulsion Notice. If you do not leave by the deadline given in the notice, the new owner will go through the court system to evict you. See our website on Eviction to learn more.

Extra time for occupants

A tenant living in the home may be entitled to a 90 day notification before they can be kicked out. The protection uses to mortgages that are federally related. To receive this additional time they should show that they are a "bona fide" occupant.