Foreclosure auctions in Utah can be one of the most disheartening experiences a person or family can go through. Add the financial burden of poor credit that goes with a foreclosure auction sale, and things can get difficult for you.
Unfortunately, it’s a reality that you have no choice but to face head on if you are in a foreclosure situation. Even though foreclosures were at an all time low in 2022 and expected to stay that way in 2023, foreclosure auctions are still happening to people. This situation can be very difficult for people because of the uncertainty of the situation.
It may be unpleasant, but it’s something you can work through. There are ways to stop foreclosure auctions in Utah. And if you can’t stop your foreclosure auction, it may take time, but credit scores can be rebuilt. And there’s certainly no shame in having to rent for a few years while you get a fresh start. Getting your house sold before the auction should be your primary goal if you can’t keep the house.
But for now, you need to focus on the immediate. Your home has already gone through pre-foreclosure. Now your bank has placed it up for public auction. Here’s what you can reasonably expect to see happen with your Utah home in foreclosure:
Foreclosure Auctions in Utah
How Do Foreclosure Auctions Work?
Utah operates primarily as a nonjudicial foreclosure state, which means the process of a foreclosure auction is primarily administered by an attorney for the bank or lender instead of through the court and a judge. The entire process from when the first payment is late to a sale is about 7 months. A home foreclosure auction occurs after the initial 90 day notice period and a 21 day sale notice period which typically happens after missing at least 3 monthly mortgage payments. The whole process takes about 4 months in Utah once you become 3 or more payments behind. All of these notices including the foreclosure sale date are posted on the property itself, in a newspaper and by mail. Notices are also typically posted at the county government building in the county the property is located in.
Generally speaking, the sale notice will consist of the property address, parcel number, the mortgage holder and the attorney administering the foreclosure. The starting price is typically not listed on the sale notice. The starting price will vary, but it typically begins with the full balance of your unpaid mortgage, all the legal fees for the foreclosure process and other fees the mortgage holder will impose on you such as administrative costs.
However some banks may list a starting bid amount based on the appraised investment value which is the value generated by a property for specific use of the buyer. A common example of this would be a multi-family home which could be converted into a rental property
Once all the notices that are legally required have been made, the attorney for your mortgage company will sell the house at an auction.
Where is a foreclosure auction held?
The foreclosure auction can be held either at the court house steps, the site of your property or at the mortgage company or bank itself. And some are choosing to conduct them online for the sake of convenience. In Utah, most foreclosure auctions are held at a court house in an open public area. There are some home buyers and investors who follow public listings almost religiously, and unfortunately there is no guarantee your home won’t sell after the first auction.
A mortgage company or a bank might end up owning your property once the auction is over. This is because most mortgage holders that are foreclosing and selling the property at auction start the bidding at the amount the mortgage holder is owed plus the legal fees. If no one bids for the property, the mortgage holder becomes the new owner.
According to Utah code, you can continue to live in your property up until the date of the auction. Considering that the average foreclosure process takes approximately 120 days in Utah, that should give you sufficient time to find a suitable place to live.—even if only temporary. However, once a property is sold at an auction, you are legally required to vacate the premises. Failure to do so will result in a notice of eviction, which can not only initiate criminal proceedings but cause irreparable damage to both your credit history and your ability to borrow money in the future (and frequently, your ability to even rent property).
How To Avoid Foreclosure Auction Proceedings
The easiest option is the most obvious: to bring all of your late mortgage payments current. However, you’re likely in default for specific financial reasons and this likely will not be a viable option for many (especially considering most banks will add exorbitant late fees in addition to balance payment in full.
Selling your home is another option, assuming your bank has not already claimed the property. The length of time it takes to go through a realtor may not afford you sufficient time to pay off the balance in full, however; much less the cost of necessary renovations and inspections. One alternative is to contact a home buying company like us here at GaryBuysHouses. Not only is approval guaranteed (typically within a matter of hours to a day) regardless of the condition of your home, but there are some that can actually arrange for you to lease back your home in certain instances. Because we handle all necessary legal responsibilities for deeds, inspections and property titles, there’s no need to go through endless paperwork with attorneys and title administrators.
A chapter 13 bankruptcy may be a good option if you know you can afford your house if it were not for the late payments and the foreclosure fees.
Make sure you fully understand what you are doing. It is OK to ask questions until you understand. Only work with licensed people, and always close at a title company.
The state of Utah has resources here.
Things happen in life, and sometimes you just can’t help what is going on with your home and the late house payments. Foreclosure auctions are not something any of us want to be in the middle of. Researching your options with your house should be started as soon as you start to become late on your house payments. While it is possible to sell your house a few days before the actual foreclosure auction, starting the process to sell your house sooner rather than later will allow for more selling and moving options for you.
A chance to start over is really what some people need sometimes. I am happy to answer all of your foreclosure questions no matter what and go over all of your options even if working with me is not the best option for you.
We ❤️ helping so please reach out anytime.
Please call or text Gary (801) 382-9199 with any questions.