UTAH REAL ESTATE INVESTOR

Anytime you are dealing with the foreclosure process you need to understand the basic time-lines involved. Utah is a non-judicial state and our property loans (“mortgages”) are held by trustees. Based on this system we have the following time-frames:

• Non-payment of loans, liens, encumbrances (usually 90 days +) and property taxes or failure to maintain adequate property insurance on the property.
• Day 1: Notice of Default is recorded against the property. (The owner has at least 3 months (90 days) to cure the default, including back payments, penalties and fees.)
• Day 90: Trustee’s sale is set. Ad appears in the newspaper & Notice of Sale is posted on the property. The ad must be public for 3 weeks prior to the auction sale.
• Day 120: On the date of the sale the trustee sells the property to the highest bidder. This sale is usually held at the County Courthouse (or at the trustee’s office).

It is important to recognize these time-frames because that is the period of time known as pre-foreclosure. For the property owner, this is the time allotted to redeem the house and keep it from being sold, being forced to move and having the foreclosure blemish on their credit for the next 10 years. For the investor, this is the best time to negotiate with the banks to create an equity position, assumable/wrap-able financing, buy property quickly for discounts, etc.

Sometime this time-frame becomes extended when the lending institution has too many other properties to take care of but the above time-frames are the minimum time-frames guaranteed by law.