2. You Can Be Kicked Out From The Home
1. The lender 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 assistance will work and let you keep your home
- Being asked to sign over the title to your home, or other files you do not understand
- High pressure sales strategies that press you to act right away
The Consumer Financial Protection Bureau has more information on foreclosure rip-offs.
If your mortgage is being collected by a mortgage "" servicer"," under federal law, they are needed to follow a specific "" loss mitigation" "process to assist property owners who are having problem making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation could appear like and a website on mortgage relief choices.
Most foreclosures in Utah are done without a lawsuit. They follow a procedure known as "" nonjudicial foreclosure." "This is likewise in some cases called a "" trustee sale." "The actions in a are listed below.
If a house owner fails to make their regular monthly payment on time, their mortgage ends up being overdue. The loan is now in "" default"." The loan provider should provide the homeowner a Notice of Delinquency and provide the chance to make the past due payments.
The loan provider or loan servicer should send by mail a notice to the house owner giving them a minimum of 1 month to become current on the loan ("" treat 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 generally prevents a "" mortgage servicer" "from starting a foreclosure till the customer is more than 120 days past due on the loan. 12 CFR 1024.41
Within ten days of recording the Notice of Default at the County Recorder's workplace, the trustee mails a copy of the Notice of Default to anyone who has actually requested a copy. You need to be sent this notification. It is normally sent out by registered mail, needing you to choose it up at the post workplace or sign for it. If you do not choose it up, the notification will likely still be legitimate. Utah Code 57-1-26( 2 )( a)
The Notice of Default gives you 3 months to end up being existing on the payments, and any late charges, legal fees 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 includes a demand for notice, which it most likely does).
- release 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 delay or stop the sale and cancel the Notice of Default by paying the whole loan balance along with legal charges and other costs related to the foreclosure.
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 lending institution can sue you in court for the distinction in between what you owe on the loan and the quantity the residential or commercial property was offered for, plus their expenditures. The loan provider should sue you within three months after the sale. The amount of the shortage judgement is restricted to the difference in between your overall debt on the residential or commercial property and the residential or commercial property's reasonable market price. Utah Code Ann. § 57-1-32
If the home is cost more than you owed on it, the trustee might transfer the excess profits with the district court in which the sale happened and leave it to the court to choose who is entitled to those funds. You might be entitled to this money. See our Petition for Adjudication of Priority to Funds on Trustee's Sale websites to learn more and kinds.
If you do not vacate the residential or commercial property following the foreclosure sale, the brand-new owner can take actions to evict you. The expulsion procedure starts with an Eviction Notice. If you don't leave by the deadline given up the notice, the new owner will go through the court system to evict you. See our website on Eviction for additional information.
A tenant living in the home may be entitled to a 90 day notification before they can be evicted. The security uses to mortgages that are federally related. To get this additional time they should reveal that they are a "" bona fide" "occupant. A bona fide tenant:
- is not the foreclosed property owner or the partner, kid, or moms and dad of the foreclosed homeowner.
- negotiated their lease with the previous property owner as if they were strangers, without giving or getting any special favors, and.
- is needed to pay lease that is not significantly less than fair market rent for the residential or commercial property or the system's rent is lowered or subsidized due to a Federal, State, or regional aid.
12 USC 5220, note.
To find out more on the eviction process see our page on expulsions.
Getting assistance
Housing counselors
The Consumer Financial Protection Bureau has a list of housing counselors, searchable by ZIP code.
You can also get aid by 888-995-HOPE (4673) to consult with housing counselors readily available throughout the country.
Additional Foreclosure Resources
Consumer information on mortgages from the Consumer Financial Protection Bureau.
This page discusses what a residential foreclosure is, the actions associated with the procedure, and where to get help.
Foreclosure is the legal procedure a lender can use to take the title to your home. Usually lending institutions start foreclosure proceedings when they think you have actually not made your mortgage payments.
Once foreclosure is complete you no longer own your home and two things can happen:
1. The lender can then sell your home to gather the cash you owe on your mortgage.
2. You can be forced out from the home.
Watch out for foreclosure frauds and phony legal aid
Facing foreclosure can be demanding, and looking for a silver bullet to fix your issues can be tempting. Scam artists could try to make the most of you throughout this time. Here are some warning signs that you could be dealing with a scam:
- Demands for upfront payment for aid.
- Guarantees that the aid will work and let you keep your home.
- Being asked to sign over the title to your home, or other documents you do not understand.
- High pressure sales methods that press you to act immediately.
The Consumer Financial Protection Bureau has more details on foreclosure scams.
Try to work out a payment strategy
Typically, the property owner misses out on a payment and gets a notice of delinquency from the loan provider. If you want to keep your home and have actually gotten a notification of delinquency, or perhaps if you have actually not gotten such a notice however can not make your complete payment, call your lending institution immediately to explain your situation and see if you can exercise a payment plan or if they can customize your loan so you can afford the payments. Any agreement or adjustment needs to be in composing. You may be able to get assist from a foreclosure counselor. Please see the Resources area at the bottom of this page.
If your mortgage is being gathered by a mortgage "servicer," under federal law, they are needed to follow a specific "loss mitigation" procedure to assist property owners who are having trouble making their mortgage payments. The Consumer Financial Protection Bureau has details about what loss mitigation might appear like and a website on mortgage relief options.
You can contact your loan provider at any time in the foreclosure procedure, and up until your house is sold, there might be an opportunity to work out a payment plan.
Foreclosure process and timeline
Most foreclosures in Utah are done without a lawsuit. They follow a process understood as "nonjudicial foreclosure." This is likewise in some cases called a "trustee sale." The steps in a nonjudicial foreclosure are below.
Step 1. Account delinquent
If a property owner stops working to make their regular monthly payment on time, their mortgage becomes delinquent. The loan is now in "default." The loan provider must provide the house owner a Notification of Delinquency and provide the opportunity to make the past due payments.
Step 2. Preforeclosure notification
The lender or loan servicer must send by mail a notification to the house owner providing a minimum of 1 month to become current on the loan (" cure the default") and supply 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 starting a foreclosure up until the customer 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 procedure officially starts when the trustee (a third celebration, such as an escrow business, bank, or other banks, that holds the legal title to the residential or commercial property till you settle the quantity you owe) records a Notification of Default at the County Recorder's office. The Notice of Default is different from the Notice of Delinquency.
Within 10 days of recording the Notice of Default at the County Recorder's office, the trustee sends by mail a copy of the Notice of Default to anybody who has actually requested a copy. You need to be sent this notification. It is generally sent out by registered mail, requiring you to choose it up at the post workplace or indication for it. If you do not pick it up, the notification will likely still stand. Utah Code 57-1-26( 2 )( a)
The Notice of Default provides you three months to become existing on the payments, and any late costs, legal charges and collection fees. This is often called "curing the default."
Step 4. Notice of trustee's sale
If you do not cure the default in the 3 month period, the trustee will tape a Notice of Sale and:
- mail a copy to you at least 20 days before the sale (if your deed of trust includes an ask for notification, which it most likely does).
- release 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 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 hold off or stop the sale and cancel the Notice of Default by paying the entire loan balance as well as legal costs and other charges connected with 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 need to bid money. It can bid the amount that you owe them and alleviate you of all additional monetary duty. If the credit bid is the greatest quote at the sale, the residential or commercial property then ends up being owned by the lender.
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 shortage, the lender can sue you in court for the distinction in between what you owe on the loan and the quantity the residential or commercial property was cost, plus their expenses. The lender needs to sue you within three months after the sale. The amount of the shortage judgement is limited to the distinction between your overall debt on the residential or commercial property and the residential or commercial property's reasonable market worth. Utah Code Ann. § 57-1-32
Excess profits from trustee's sale
If the home is sold for more than you owed on it, the trustee might transfer the excess proceeds with the district court in which the sale occurred and leave it to the court to decide who is entitled to those funds. You might be entitled to this money. See our Petition for Adjudication of Priority to Funds on Trustee's Sale web page to learn more and forms.
Eviction following foreclosure
If you do not abandon the residential or commercial property following the foreclosure sale, the new owner can take actions to evict you. The expulsion process starts with an Expulsion Notice. If you don't leave by the due date provided in the notice, the new owner will go through the court system to evict you. See our website on Eviction for more information.
Extra time for occupants
A renter living in the home may be entitled to a 90 day notice before they can be kicked out. The protection applies to mortgages that are federally associated. To receive this additional time they need to reveal that they are a "authentic" occupant.