Utah Foreclosures & Eviction Laws
Utah and federal law can both be important in a foreclosure and eviction procedure. Federal law provides certain protections for renters in a foreclosure home, while Utah law dictates the procedures and bases for carrying out foreclosure and eviction. Generally, a foreclosing lender or purchaser at a foreclosure sale has the right to evict the defaulting homeowner immediately after the foreclosure sale.
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Judicial Foreclosure
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Utah law generally allows mortgage lenders to foreclose in one of two different ways. The first way, which is available to all mortgage lenders, is judicial foreclosure. To foreclose judicially the lender must file a lawsuit against the defaulting homeowner. If the homeowner fights back, the lender must prevail at trial and obtain a court order of foreclosure. The county sheriff will then hold a sheriff's sale where the property will be sold to the highest bidder in a public auction. From start to finish, judicial foreclosure can take anywhere from about six to 18 months.
Power of Sale
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The second manner of foreclosure in Utah is nonjudicial, or power of sale, foreclosure. Lenders who have a lien under a trust deed, rather than a traditional mortgage, are the only lenders who can foreclose by power of sale. To foreclose by power of sale takes about five months and requires no court involvement. The lender simply provides notice of default, waits three months, then provides at least 30 days written notice of the time and place of the public auction. A third party called a trustee will hold the auction and sell the property to the highest bidder.
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Redemption
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At any time before a public auction, whether under judicial or nonjudicial foreclosure, a homeowner in Utah has the right to redeem the mortgage by paying off the full amount due on the loan, including interest, late fees and costs incurred by the lender. This right of redemption generally ends at the public auction. However, under a judicial foreclosure, the homeowner has an additional six months after the sheriff's sale during which time the homeowner can redeem the mortgage and reclaim the home. Because of the right of redemption, many lenders will not evict a homeowner until the six months have expired after the sheriff's sale.
Eviction
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Immediately upon close of the public auction at a judicial or non-judicial foreclosure sale the homeowner no longer has a legal right to occupy the home. The high-bidder at the auction becomes the new owner of the home. In many instances, the mortgage lender becomes the owner because they are the only bidder at the auction. If the homeowner refuses to leave the home then the new owner can file an eviction lawsuit at the local county courthouse. An eviction lawsuit moves fairly quickly, so the new owner will likely have an eviction order within about one or two months after filing the eviction complaint. If necessary, the sheriff's department will enforce the eviction order by physically removing the homeowner and his property from the home.
Tenant Rights
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The rules are a little different for renters occupying a foreclosure home. Under a federal law enacted on May 20, 2009, called the "Protecting Tenants at Foreclosure Act," tenants generally have the right to remain in the property for at least 90 days after the new owner provides a notice of eviction. However, if the new owner does not intend to occupy the home as her primary residence then the tenant has the right to remain in the property until the lease expires, which may be more or less than 90 days.
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