What is a Foreclosure in Utah
Have you noticed that difficulties in life happen when you’re least prepared for them? Overcoming obstacles is hard and sometimes you just feel like giving up. You’re here because you want to know what is a foreclosure in Utah and what possible options are available for you. Maybe you received a foreclosure notice and you want to sell house in foreclosure but you don’t know if that’s what you should be doing. Let’s find out.
Forget about all the reasons why something may not work. You only need to find one good reason why it will and why you should be doing it.
To start a foreclosure, the trustee records a notice of default in the county recorder’s office at least 3 months before giving a notice of sale. Trustee issue or mail a copy of the foreclosure notice or notice of default within 10 days after recording it to anyone who requested a copy. It is usually sent by registered mailing, requiring you to pick it up at the post office or sign for it. If you do not pick it up, the foreclosure notice will likely still be valid.
Sell House in Foreclosure
When you receive foreclosure notice you can still sell your home independently before the scheduled date of auction. The auction will be in the courthouse. Sell house in foreclosure could be your best option when facing long-term financial struggles. Not only will it get you out from under your mortgage, but you could also make some money on the sales.
To Sell House In Foreclosure Have Many Advantages, And They Are As Follows:
- Your credit report won’t have a foreclosure record – foreclosure usually stays on your credit record for seven years. That means you will have difficulty securing loans in the future.
- You can purchase another property sooner – If you have a foreclosure on your credit history it would be difficult to apply for a new mortgage. Sell house in foreclosure can avoid this from happening.
- There won’t be any deficiency balance – Bank may ask you to pay for a deficiency balance if the proceeds of the property couldn’t cover the mortgage and other fees. If you sell house in foreclosure you will get enough money to pay the mortgage
How Long Is The Foreclosure Process in Utah?
A nonjudicial foreclosure in Utah can be completed in about 4 months if it’s not contested by the borrower and the nonjudicial foreclosure process formally begins when a notice of default is recorded at the county recorder’s office. The time frame for a judicial foreclosure depends on the court’s schedule and its rulings.
There were real estate attorneys that can represent lenders and borrowers in both non-judicial and judicial foreclosures as well as in claims for deficiencies after foreclosure. Experience with hundreds of foreclosures has given attorneys a thorough understanding of the procedural steps and potential pitfalls. You can reach out to them for consultation when dealing with foreclosure.
How Many Missed Mortgage Payments Before Foreclosure in Utah?
Under federal law, the lender can’t officially begin foreclosure until you’re more than 120 days past due on your payments, subject to a few exceptions. Generally, you receive a foreclosure notice in the mail stating that your lender intends to foreclose on your property.
What Happens Once The Foreclosure Is Complete?
Once a foreclosure is complete you no longer own your home and two things can happen:
- The lender can then sell house in foreclosure to collect the money you owe on your home loan.
- You can be evicted from the home.
Usually, lenders start foreclosure proceeding when they think you have not made your mortgage payments. Foreclosure is the legal process a lender can use to take the title and rights to your home.
What Is A Foreclosure in Utah Timeline And Process?
- Account Delinquent – If the homeowner failed to make the monthly payment on time, then their mortgage becomes delinquent. The loan is now in default. The lender should provide the homeowner a Notice of Delinquency and allow them to make the past due payments.
- Pre-foreclosure notice – The loan servicer or lender must mail a foreclosure notice to the homeowner giving them at least 30 days to become current on the loan. Federal law usually prevents a “mortgage servicer” from initiating a foreclosure until the borrower is more than 120 days overdue on the loan
- Notice of default – The foreclosure process formally begins when the trustee records a Notice of Default at the county recorder’s office. The foreclosure notice gives you three months to become current on the payments, and any late fees, legal fees, and collection fees. This is sometimes called “curing the default.”
- Notice of trustee’s sale – If you do not cure the default in three months, the trustee will record a notice of sale and then mail a copy to you at least 20 days before the sale, publish the notice of the sale in the newspaper once a week for three weeks, In addition, a notice of sale on the property will be posted at least 20 days before the sale. You can request that the trustee stop the sale and cancel the Notice of Default by paying the entire loan balance as well as legal fees and other fees associated with the foreclosure.
- Foreclosure Sale – the property will be sold to the highest bidder, which is usually the bank that is foreclosing on your mortgage. At the sale, the bank doesn’t need to bid cash because they can bid the amount you borrowed or owe them and relieve you from all further financial responsibility.
- Deficiency judgment following sale – there are times that properties are being sold for less than what you owe on the loan and this is what we called a deficiency. A lender can sue you in court for the difference between what you owe on the loan and the amount the property was sold for plus their expenses.
What’s the best way out from foreclosure?
We have answered what is a foreclosure in Utah as we started and it is very important that you have knowledge about what you are dealing with and the options you have to resolve it. When you received a foreclosure notice you have to remember that your time is very essential.
- Reinstatement – When you’re behind on mortgage payments, reinstating will let you pay back the amount in lump-sum payments before a specific date.
- Short refinance – The lender may agree to forgive some part of your debt and refinance the remaining debt into an entirely new loan.
- Forbearance – If your lender believes that you have a valid reason behind the missed payments, it may agree to help you out by granting you a forbearance. Depending on your financial circumstances, your lender may consent to a repayment plan that temporarily lowers your payments—or even suspends them for a specified period.
- Mortgage modification – loan modification allows you to refinance your mortgage loan or extend its term. The lender may settle for monthly mortgage payments within your financial means.
- Refinance with a Hard Money Loan – lenders may refuse to refinance your loan if it considers you to be a high-risk borrower. In this situation, you can call private creditors to refinance with a hard money loan to stop foreclosure.
- A deed in Lieu of Foreclosure – is an arrangement you reach with a lender where you willingly and voluntarily turn over the deeds(ownership) to avoid the foreclosure process.
- Short Sale – this means your selling your home for less than what you currently owe on the house. Because a lot of houses that go to auction aren’t sold for their appraised price, some banks and lenders will agree to sell your home.
How much time do you have to sell your home before losing it to foreclosure?
We have answered what is a foreclosure in Utah but we cannot exactly measure the time you have before you lose your property to foreclosure because it would depend on several factors such as your loan servicer, the type of foreclosure process (whether judicial or non-judicial), and the state’s specific rules.
How to sell my house fast in foreclosure?
Sell house in foreclosure to a cash buyer, it would be the fastest and simplest sales process than the traditional route. It’s secured cash and it won’t require so much time since you won’t need to wait for several weeks to months for the mortgage to be approved. You will be able to pay what you owed as soon as you sold it for cash. You don’t have to pay for update and repair costs since they purchase homes in an as-is condition.
You know what is a foreclosure in Utah and what might happen when you’re more than 120 days past due. It is best to act when you still have time before it’s too late.
Find Foreclosure In Utah That Meets Your Need:
A good foreclosure listings service helps you locate the best home foreclosures in Utah and gives you accurate and timely information. Bank Foreclosures Sale offers a huge database of Utah foreclosed homes for sale including Utah bank foreclosures, government foreclosures, HUD and VA repo homes, pre-foreclosures, bankruptcies, foreclosure auctions, tax liens, distressed properties, and Utah bank-owned homes. Bank Foreclosures Sale offers the most reliable and up-to-date listings of bank foreclosures.
Understanding the legal terms used with a foreclosure can be helpful for you. What was stated above can serve as your guide as you moved forward. We started answering questions like what is a foreclosure in Utah, what happened when you receive a foreclosure notice, and why you should sell house in foreclosure but in the end, it will still be your choice and decision.
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