Utah foreclosure laws are dictated by the fact that it is a lien theory state and the Deed of Trust is the primary instrument of security. This means that a power of sale clause must be inserted into the deed and the property is held in trust until the underlying loan has been fully repaid.
Due to the fact that foreclosures are controlled by the “power of sale” they are non-judicial. A power of sale essentially creates a pre-condition in the agreement which allows the trustees of the property to institute foreclosure proceedings if the borrowers loan goes into delinquency. The state of delinquency, simply means that the loan is not being repaid according to the terms of agreement of the Deed of Trust. Strict notice requirements have to be adhered to by the Trustees of a property.
Notice of sale must be filed within 3 months of the default notice, and must also be published in general circulation newspapers for 3 consecutive weeks prior to the auction of the property. Depending on this timing the uncontested non-judicial foreclosure takes approximately 120 to finalize.
Although the State of Utah also allows mortgages as security instruments over property loans, dissolution of which would entail a judicial foreclosure, these are rare. It has been found that non-judicial foreclosure is far more expeditious for all parties concerned and they cost less money.
There is a statutory right of redemption period in Utah with regards to post-sale property and this may be extended by the courts upon request of the borrower. Deficiency judgments are permitted if the proceeds of the sale of the property do not settle the amount owed on the home loan, however if the lender sells the property for less than 2/3 of fair market value, the courts would not grant a deficiency judgment.