What should you do first if you are behind?
- Open every letter from your lender or servicer. The dates in them matter.
- Call your servicer and ask what loss mitigation options they offer: a repayment plan, forbearance, a loan modification, or others.
- Talk to a HUD-approved housing counselor. HUD lists them at hud.gov/counseling.
- Know what your home is worth. If you have equity, selling on your own terms can protect it.
- Be careful who you trust. Be wary of anyone who asks for upfront fees, asks you to sign over your deed, or tells you to stop talking to your lender.
You do not have to figure this out alone, and there is no shame in asking for help early. Early is when you have the most choices.
How does foreclosure work in Utah?
Most Utah home loans are secured by a trust deed, which lets a trustee sell the home without going to court. This is called a non-judicial foreclosure, and Utah Code Title 57, Chapter 1 sets the steps.
| Stage | What happens |
|---|---|
| Missed payments | Under federal mortgage servicing rules, a servicer generally cannot make the first foreclosure notice or filing until the loan is more than 120 days delinquent. |
| Notice of default | The trustee records a notice of default with the county recorder. A copy is mailed within 10 days to anyone who recorded a request for notice. |
| Reinstatement period | At least three months must pass after the notice of default is recorded before the sale can be noticed. During those three months, you can reinstate the loan by paying what is past due plus costs and fees. |
| Notice of sale | Published at least once a week for three weeks, the last one 10 to 30 days before the sale, and posted on the property and at the county recorder at least 20 days before the sale. |
| Trustee's sale | A public auction at a courthouse in the county, between 8 a.m. and 5 p.m. It can be postponed; if postponed more than 45 days, it must be noticed again. |
| After the sale | Any money left after the costs and the loan goes to whoever is legally entitled to it, which can include you, or is deposited with the court. |
Can you stop a foreclosure by catching up?
Yes, within a window. Utah Code 57-1-31 lets the owner reinstate the loan within three months of the recording of the notice of default by paying the full amount then due, not counting principal that would not be due if there had been no default, plus the costs, trustee's fees, and attorney fees actually incurred. Once that is paid, the loan is reinstated as if it had never been accelerated, and the trustee must cancel the notice of default.
After the three months, reinstatement is up to the lender. Many will still work with you, so keep talking to them.
What are your options to avoid foreclosure?
| Option | How it works | Best when |
|---|---|---|
| Repayment plan or forbearance | Spread out the past-due amount, or pause or reduce payments for a time. | The hardship is temporary. |
| Loan modification | The lender changes the loan terms to make the payment affordable. | You want to keep the home and your income can support a new payment. |
| Reinstatement | Pay the past-due amount and costs within the legal window. | You can access the money, for example from family or savings. |
| Sell the home | A normal sale pays off the loan, and you keep the equity. | The home is worth more than you owe, plus selling costs. |
| Short sale | The lender agrees to accept less than the full payoff. | You owe more than the home is worth. |
| Deed in lieu | You give the home back to the lender by agreement. | A sale is not possible and the lender agrees. |
Under federal rules, if a servicer receives your complete loss mitigation application more than 37 days before a foreclosure sale, it generally has to evaluate you for all available options within 30 days and tell you in writing what it will offer. Apply early and keep copies of everything.
Should you sell your house to avoid foreclosure?
If you have equity, selling before a trustee's sale is often the best way to protect it. A normal sale on the open market can bring more than an auction, and you control the timing and the move.
- Time matters. A typical sale takes time to list, find a buyer, and close. Starting during the three-month reinstatement window gives the most room.
- Tell your servicer you are selling. Ask for a payoff statement and whether they will postpone a sale date if you are under contract.
- Short sales take longer because the lender has to approve the price.
See what to expect at closing in our guide to the cost to sell a house in Utah.
What happens after a foreclosure sale in Utah?
- Leftover money. If the sale brings more than the loan and costs, the extra goes to those legally entitled to it, or is deposited with the district court. Watch for a notice and claim it.
- Deficiency. If the sale brings less than you owe, the lender has three months after the sale to sue for the balance, and a court can award no more than the amount by which the debt exceeds the home's fair market value on the date of sale, not the auction price.
- Taxes on forgiven debt. Debt a lender forgives in a short sale, deed in lieu, or foreclosure can be taxable. The special exclusion for forgiven mortgage debt on a main home applied to debt discharged through 2025 (or under a written agreement made before 2026), so ask a CPA and see IRS Publication 4681.
Common questions
How long does foreclosure take in Utah?
At least several months. Federal rules generally bar the first foreclosure notice until a loan is more than 120 days behind, Utah requires at least three months after the notice of default before the sale is noticed, and the sale notice runs for weeks. Postponements can add time.
Is Utah a judicial or non-judicial foreclosure state?
Most Utah home loans use trust deeds that allow non-judicial foreclosure by a trustee, under Utah Code Title 57, Chapter 1. Utah law also provides a court process for mortgage foreclosure, in Title 78B, Chapter 6, Part 9.
Can I stop a foreclosure in Utah by paying what I owe?
Yes. Within three months after the notice of default is recorded, Utah law lets you reinstate by paying the past-due amount plus costs and fees. After that, it is up to the lender.
Can I sell my house if it is in foreclosure?
Usually, yes, up until the trustee's sale. The loan is paid off from the sale. If you owe more than the home is worth, the lender must approve a short sale.
Will I owe money after a foreclosure in Utah?
Possibly. The lender can sue for a deficiency within three months after the sale, but a court can award no more than the debt minus the home's fair market value on the sale date.
Do I get any money from a foreclosure sale?
If the auction brings more than the loan and costs, the surplus goes to the people legally entitled to it, which can include you, or is deposited with the district court.
Who can help me understand my options?
Your servicer, a HUD-approved housing counselor (listed at hud.gov/counseling), and a Utah attorney. If you are thinking about selling, a local agent can tell you what your home would likely sell for.
If you are reading this, you are probably carrying a lot of stress. Please know that falling behind happens to good people, for reasons like a job loss, a medical bill, or a divorce. I will never pressure you to sell. I will tell you honestly what your home is worth, what a sale would leave you after the loan, and how that compares with the other options. Sometimes the answer is to work it out with your lender and stay. Either way, you will know where you stand, and everything you share stays private.
Want a private, no-pressure conversation?
Share your address and a good way to reach you. Matt will reach out personally and keep everything confidential. No pressure and no obligation.
Thank you.
Matt has your details and will reach out personally. If it is easier, you can text him anytime at (385) 477-8138.
Sources
- Utah Code § 57-1-24, notice of default and three-month period
- Utah Code § 57-1-25, notice of trustee's sale
- Utah Code § 57-1-26, mailing of notices
- Utah Code § 57-1-27, sale by public auction, postponement
- Utah Code § 57-1-29, proceeds of trustee's sale
- Utah Code § 57-1-31, reinstatement
- Utah Code § 57-1-32, deficiency actions
- Utah Code Title 78B, Chapter 6, Part 9, mortgage foreclosure
- 12 CFR § 1024.41, loss mitigation procedures (Regulation X)
- HUD, Talk to a Housing Counselor
- IRS Publication 523, Selling Your Home (canceled mortgage debt reminder)
- IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments
Last updated October 2026. This guide is general education, not legal or tax advice. Foreclosure deadlines in your own letters control. If you have received a notice of default or notice of sale, talk with a Utah attorney or a HUD-approved housing counselor right away.
