Legal Question in Real Estate Law in Utah

Re: forclosure

The lender should have sent you a copy of the notice of default. The lender can record a notice of default as soon as you go into default, regardless of whether they are 'working with you.' The next step is to file notices of foreclosure, which you should receive. The actual foreclosure process takes 3-4 months until the actual sale date - which is in the notice of foreclosure. When the sale is held the new owner will then probably require you to move. The foreclosure process can be stopped by the lender if you reach an agreement with them. If you file bankruptcy the foreclosure process is stopped, but the lender can apply to the court for permission to foreclose, which is generally granted. But the lender then has to start all over again with the foreclosure.

You should talk to your lender to see who owns your note. If it is Fannie Mae or Feddie Mac, you may qualify for relief through the new government programs, which may get you a lower payment. You may call for more information.

Re: forclosure

Once the loan is in default, the first step in the process is to file a "Notice of Default", and they will send it to the address on the Trust Deed by certified mail, return receipt requested - that is the law. If they do that, even if the debtors do not pick it up or have moved, they have complied with the law and the foreclosure process can continue. The lender must then wait 3 months during which time Debtors have an absolute right to cure the default and continue with your payments. If you do not cure within the 3 mo, they then must notice up a sale which, by the time the post the notices, publish as is required under Utah law, it will probably be at least another month. While they can take longer, postpone or delay to give you additional time, this minimum of a 4 month process cannot start until the Notice of Default is filed.

When I am advising lenders, I advise that they start the process shortly after the default in payments or performance, because while they can always delay it after they start, they cannot expedite it if negotiations, short sale, etc falls through.