- Who sends it
- The trustee named in your trust deed, recorded with the county and mailed by certified or registered mail within 10 days
- What it starts
- A three-month wait before a notice of sale, and your three-month right to reinstate
- Do this first
- Find the recording date, count three months, and ask the trustee in writing for a reinstatement statement
What this document is in Utah
Under Utah Code § 57-1-24, the trustee cannot use its power of sale until it records a notice of default in each county where the property is. The notice identifies the trust deed and the trustor, gives the legal description, states that a breach has occurred and what it is, and states the trustee's election to sell the property.
Within 10 days after recording, the trustee or beneficiary must mail a signed copy, showing the recording date, by certified or registered mail, return receipt requested, to anyone who recorded a request for notice (§ 57-1-26(2)(a)). Most trust deeds contain a request that notices go to the parties, so you should get one (§ 57-1-26(3)). It must come with the trustee's name, mailing address, contact hours and phone number.
The Utah courts warn that the notice is often sent so you have to sign for it or pick it up at the post office, and that it is likely still valid if you do not.
What it does and does not mean
- It does not set a sale date. A separate Notice of Trustee's Sale does that, and only after three months.
- It is different from a notice of delinquency or the earlier pre-default notice.
- During the three months, you, a later owner, or a junior lienholder can cure by paying the amount then due other than the principal that would not be due without the default, plus costs and trustee's and attorney's fees actually incurred (Utah Code § 57-1-31). The loan is then reinstated as if it had never been accelerated.
- If you cure, the trustee must record a cancellation of the notice of default once a reasonable cancellation fee is paid, and mail you a copy within 20 days (§ 57-1-31(2)).
The deadlines it starts and how to count them
- Three months from the recording date, not the mailing date. No notice of sale can be given until at least three months have passed since recording (§ 57-1-24(2)).
- Your cheap reinstatement right also runs for three months from recording (§ 57-1-31(1)).
- Reinstatement statement: the trustee must receive your written request at least 10 business days before the three months end, sent by certified mail or a tracked courier to the trustee's notice address. If the trustee takes more than five business days to send it, your time to reinstate is extended by the delay (Utah Code § 57-1-31.5(2)). Count business days, skipping weekends and holidays.
- Relief application: apply to the single point of contact before the three months end. If you apply, no notice of sale can be given until you get a written decision (§ 57-1-24.3(3), (6)).
What to do this week
- Find the recording date on the notice. Mark the date three months later and the date 10 business days before that.
- Send the trustee a written request for a reinstatement statement by certified mail, return receipt requested, or a tracked courier. Keep the receipt.
- Apply to the single point of contact for any foreclosure relief and send every document asked for on time.
- Check the trustee's statement. It must list attorney fees, trustee fees and costs, and disclose any business ties the trustee has with companies providing foreclosure services (§ 57-1-31.5(3)).
- Read how to stop foreclosure in Utah.
State help and scam warnings
Utah has no statewide foreclosure mediation program that we could find. The Utah State Courts foreclosure page links to HUD-approved housing counselors, and Utah Legal Services offers free civil legal help to people with low incomes. See the Utah foreclosure help page.
- A recorded notice of default is public, so expect offers from strangers. Never sign over your title or pay upfront for help.
- Paid loan modification help in Utah is licensed by the Division of Real Estate, and fees cannot be charged before you accept a written offer from your lender (Utah Code § 61-2c-301(1)(u)).
The rest of the Utah process
See how foreclosure works in Utah, the timeline, ways to stop it and free help in Utah, or read the national guide to this letter.
Common questions
How much do I have to pay to stop a Utah foreclosure after a notice of default?
Within three months after the notice of default is recorded, the amount then due without acceleration plus costs and trustee's and attorney's fees actually incurred (Utah Code § 57-1-31). After that, the Utah courts say you usually must pay the whole balance plus fees unless the servicer agrees otherwise.
I did not sign for the certified letter. Does the Utah notice of default still count?
The Utah State Courts say it likely still does. The notice is recorded with the county, and the law requires it to be mailed, not received (Utah Code § 57-1-26(2)).
How soon after a Utah notice of default can my home be sold?
A notice of sale cannot be given until three months after recording. Then the sale notice must be on the public legal notice website for 30 days and posted at least 20 days before the sale (Utah Code §§ 57-1-24, 57-1-25).
Can my second mortgage lender cure a Utah default?
Yes. Utah Code § 57-1-31 lets anyone with a subordinate lien or trust deed of record cure within the three months, as well as you and any later owner.
Other Utah letters
- Notice of intent to file a notice of default (pre-default notice with single point of contact)In Utah, before a notice of default is recorded on a home you live in, a bank or credit union lender or its servicer must warn you in writing. The letter lists exactly what it takes to cure, gives you a date at least 30 days away, and names one person to talk to about foreclosure relief. No foreclosure has been recorded yet.
- Notice of Trustee's SaleThe Notice of Trustee's Sale sets the date, time and courthouse where your Utah home will be auctioned. It comes only after the three months following the notice of default. After a Utah trustee's sale there is no right to buy the home back, so the days before the sale matter most.
- Notice to quit and unlawful detainer (eviction) summons after a trustee's saleAfter a Utah trustee's sale, the former owner becomes an unlawful detainer only after staying past a notice to quit from the buyer. If you do not leave, the buyer can file an eviction case, and the summons gives you just three business days to respond. Utah also tells the court to triple damages in these cases, so act quickly.
- Court clerk's notice of deposited excess proceeds from a trustee's saleWhen a Utah trustee's sale brings in more than the costs and the loan, the trustee pays the extra to the people legally entitled to it or deposits it with the district court clerk. If it is deposited, the clerk must notify listed claimants within 15 days. You claim the money by filing a petition, and other claimants get 60 days to object.
- Summons and complaint to recover the balance due after a trustee's sale (deficiency lawsuit)After a Utah trustee's sale, the lender can sue for the shortfall only if it files within three months after the sale. The court must find the home's fair market value on the sale date, and the judgment cannot be more than the debt, interest and sale costs minus that value. You usually have 21 days after service to answer.
Sources
- Utah Code § 57-1-24 (notice of default)
- Utah Code § 57-1-26 (mailing of notice of default and notice of sale)
- Utah Code § 57-1-31 (reinstatement; cancellation of notice of default)
- Utah Code § 57-1-31.5 (reinstatement or payoff statement)
- Utah Code § 57-1-24.3 (single point of contact)
- Utah State Courts: Foreclosure