Utah Foreclosure Law

In Utah foreclosure law, Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Utah state foreclosure timeline period varies. Utah foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Utah foreclosure law authorizes the statutory right of redemption. Deficiency judgments are also allowed by Utah Foreclosure law but vary in term and conditions.

By way of non-judicial or judicial foreclosure process lenders in the state of Utah may foreclose on deeds of trusts or mortgages in default occurs.

Judicial Foreclosure
The judicial foreclosure process necessitates the filing of a lawsuit by lender to obtain a court order to foreclose on a particular property. The property is auctioned off to the uppermost bidder condition the Court orders to foreclose. The judicial foreclosure process is mostly practiced when mortgage or deed of trust holds the clause “No power of sale”.

Non-judicial foreclosure
In case homeowner defaults non-judicial foreclosure process allows the lender to sell the property to close balance of the loan. Non-judicial foreclosure method is favored when “power of sale clause” exists in the deed of trust or mortgage document. A “power of sale clause” in a deed of trust or mortgage means that in case of default borrower has pre-authorized the sale of property to pay off the balance on a loan. The power to sell may be concluded by the lender or their representative in conditions where a power of sale exists. The modus operandi for this Non-Judicial Foreclosure is elucidated in the “Power of Sale Foreclosure Procedure” listed below:

Power of Sale Foreclosure Procedure
If the power of sale clause states the time, place, and terms of sale then the procedure must be followed according to the specifications. And in case Power of sale clause has no specification regarding time, place and terms of sale than it will be carried out in following way:
•    The notice issued to foreclose must be published in newspaper having general circulation in the county in which the property is to be sold every week for three (3) consecutive weeks.
•    It is also required to post the notice on the property not under (10) days and over (30) days prior to the date scheduled for sale.
•    At least 20 days before the sale notice is required to be pasted at any noticeable place in the area where property is located and also at the office of recorder.
•    Borrower has the right of redemption but the time of redemption will be fixed by court as that seems fit to the conditions.
•    Lender may sue for the deficiency equal to the difference of actual loan amount owed by borrower and the amount of the foreclose sale.
•    Lender may seize the property until the borrower pay the payable differential amount.