The Foreclosure Timeline

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The Foreclosure Process and Timeline.

Utah will be used as a case example of the foreclosure process. Most foreclosures in Utah are done without a court case. They follow a process known as "nonjudicial foreclosure." This is also sometimes called a "trustee sale." The steps in a nonjudicial foreclosure are below.

1)Account Delinquent

If a homeowner fails to make their monthly payment on time, their mortgage becomes delinquent. The loan is now in "default." The lender should provide the homeowner a Notice of Delinquency and give them the opportunity to make the past due payments.

2)Pre-foreclosure Notice

The lender or loan servicer must mail a notice to the homeowner giving them at least 30 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

5) Foreclosure Sale

At the 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 have to bid cash. It can bid the amount that you owe them and relieve you of all further financial responsibility. If the credit bid is the highest bid at the sale, the property then becomes owned by the lender.

3) Notice of Default

(Utah Code 57-A-24)

The foreclosure process formally begins when the trustee (a third party, such as an escrow company, bank, or other financial institution, that holds the legal title to the property until you pay off the amount 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 recording the Notice of Default at the County Recorder's office, the trustee mails a copy of the Notice of Default to anyone who has requested a copy. You should be sent this notice. It is usually sent by registered mail, requiring you to pick it up at the post office or sign for it. If you do not pick it up, the notice will likely still be valid. Utah Code 57-1-26 (2)(a)

The Notice of Default 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."

4) Notice of Trustee's Sale

If you do not cure the default in the three month period, the trustee will record a Notice 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 probably does)

-publish the Notice of the Sale in a newspaper once a week for three weeks, and

-post the Notice of Sale on the 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 postpone or 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.

6) Deficiency Judgment Following the Sale and Eviction Following Foreclosure

Sometimes the property will sell for less than what you owe on the loan. This is called a deficiency. If there is a deficiency, the 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. The lender must sue you within three months after the sale. The amount of the deficiency judgement is limited to the difference between your total debt on the property and the property's fair market value.  Utah Code Ann. § 57-1-32

If you don't vacate the property following the foreclosure sale, the new owner can take steps to evict you. The eviction process starts with an Eviction Notice. If you don't leave by the deadline given in the notice, the new owner will go through the court system to evict you.

All information has been sourced from : https://www.utcourts.gov/en/self-help/categories/housing/foreclosure.html

For further detail and help refer to the link provided, help is also provided by the The Consumer Financial Protection Bureau. A list of housing counselors, searchable by ZIP code and you can also get help by calling 888-995-HOPE (4673) to speak with housing counselors available across the country.

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