- Who sends it
- The clerk of the district court in the county where the sale took place
- What it starts
- Your chance to file a petition for the money; claimants who do not assert a claim can be barred
- Do this first
- File a Petition for Adjudication of Priority to Funds on Trustee's Sale with the $50 fee, or ask about a fee waiver
What this notice is in Utah
Utah Code § 57-1-29 tells the trustee to pay sale proceeds in order: first the costs of the sale, including trustee's and attorney fees actually incurred; second the loan; and then the balance to the people legally entitled to it. Instead of paying the balance, the trustee may deposit it with the clerk of the district court in the county of the sale.
If it deposits the money, the trustee files an Affidavit of Deposit listing all known claimants and their addresses. The clerk then places the money with the state treasurer, subject to the court's orders, and must notify every listed claimant within 15 days of getting the affidavit (§ 57-1-29(1), (2)).
What it does and does not mean
- It means your home sold for more than the sale costs and the loan, and some of that money may be yours.
- It does not mean you will get all of it. Second mortgages and other liens can claim it in order of priority.
- The court decides who gets the money, through a petition. The clerk cannot just mail it to you.
- You can file the petition yourself. The Utah State Courts have forms and a checklist on their excess proceeds page.
The deadlines and how to count them
- There is no set deadline in § 57-1-29 to file your petition, but do not wait. Another claimant may file first.
- When you file, you must notify every claimant on the trustee's list and any others you know of, and tell them they have 60 days to contest by affidavit or counter-petition (§ 57-1-29(3)). Count 60 days from your notice.
- If no one contests within 60 days, the court orders the money paid to you without a hearing.
- If someone contests, the court holds a hearing within 20 days to set priorities. Anyone who fails to appear and assert a claim is barred after the court's order (§ 57-1-29(4), (5)).
What to do this week
- Call the district court clerk named in the notice. Ask for the case number, the amount deposited and the trustee's list of claimants.
- Get the Petition for Adjudication of Priority to Funds on Trustee's Sale forms from the Utah State Courts excess proceeds page.
- File it with the $50 fee (§ 57-1-29(3)(a)), or ask the court to waive the fee if you cannot afford it.
- Send notice of your petition to every listed claimant, and keep proof of how and when you sent it.
- If you moved, give the clerk your new address so you get later notices.
Scam warnings
People who track foreclosures may offer to recover this money for a large share of it. The court forms are public, and the court can waive the filing fee for people who cannot afford it.
- Read any contract before you sign. If you are unsure, ask Utah Legal Services first.
- If the money has gone to the state's unclaimed property program, a fee agreement signed within 24 months after the transfer is void (Utah Code § 67-4a-1302), as the Utah surplus funds page explains.
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 does it cost to claim Utah foreclosure surplus?
The filing fee for a petition for adjudication of priority is $50 (Utah Code § 57-1-29(3)(a)). The Utah courts say you can ask the court to waive fees if you cannot afford them.
What happens if no one objects to my Utah surplus petition?
If no affidavit or counter-petition is filed within 60 days of your notice, the court orders the clerk or county treasurer to pay you as asked, without a hearing (Utah Code § 57-1-29(3)(d)).
What if I ignore the Utah clerk's notice?
A person who claims an interest in deposited funds but fails to appear and assert the claim is barred after the court's order (Utah Code § 57-1-29(5)). Act on the notice even if you are not sure how much is left.
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 DefaultIn Utah, the trustee starts a trustee's sale foreclosure by recording a notice of default with the county recorder. For three months after recording, you can stop the foreclosure by paying only the past-due amount plus costs and fees actually incurred. After that, stopping the sale usually takes the full balance or the servicer's agreement.
- 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.
- 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.