If a homeowner fails to make your mortgage payments, a mortgage lender may start foreclosure proceedings. Once a home is foreclosed, the homeowner loses title (ownership), and the lender may sell it to recover the amount of the loan balance. Foreclosure may be complicated. It is wise to consult with an experienced foreclosure defense attorney, like one of the qualified attorneys at the Morrison Law Group.
Foreclosures in Utah may be either judicial or nonjudicial, with the latter, cheaper option the preferred choice of most banks and mortgage servicers. When a lender utilizes the court system to foreclose on the property, it is a judicial foreclosure. When a lender uses a foreclosure system outside of the judicial process, it is a nonjudicial foreclosure.
The nonjudicial foreclosure process formally begins when a notice of default is recorded at the county recorder’s office. The notice of default allows the borrower three months to cure the default. Within ten days of recording the notice of default, the trustee mails a copy of the notice of default to parties in interest – anyone who has requested a copy.
If the default is not cured and a minimum of three months has passed, the trustee will record a notice of sale and:
- mail a copy to the trustor (homeowner) at least 20 days before the sale,
- publish notice of the sale in a newspaper, and
- post a notice about the sale on the property at least 20 days before the sale.
At the foreclosure sale, the property will be sold to the highest bidder, which is usually the bank that is foreclosing on the property. At the sale, the bank doesn’t have to bid cash. Instead, it makes a credit bid. If the credit bid is the highest bid at the sale, the property then becomes REO.
The foreclosing bank may obtain a deficiency judgment following a nonjudicial foreclosure if it files a lawsuit within three months after the foreclosure sale. The amount of any prayer for relief is limited to the difference between the borrower’s total debt and the property’s fair market value.
The Morrison Law Group strives for complete client satisfaction with the services that we provide throughout a client’s bankruptcy case, as well as the ongoing services that we provide post-bankruptcy. Not all Utah Bankruptcy attorneys can make this statement, but the Morrison Law Group is not like other Utah bankruptcy law firms. We can help if you are facing possible foreclosure or just a few months behind on your mortgage payments. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.