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If you miss your house payments for 90 days or longer, it could result in a foreclosure; this is the typical amount of time that a lender will wait before deciding to take legal action. At this point, you are left with a few options. You can pay off the balance of the loan —- which may require you taking out another loan -— you can pay off the back payments and fees, or you can allow the foreclosure to proceed. While you may love to pay off what you owe, this is realistically not something that many people can do, as it is hard to come up with so much money at once, so a foreclosure may be inevitable.
You are going to get a lot of advanced notice if the bank decides to foreclose on your home, thanks to the laws in Utah. These laws state that the first notice must be recorded by the party who wants to foreclose on the house three months before they do so; after that recording has been done, the notice has to be sent to you within ten days.
Next, the lender has to provide you with a notice of sale a total of three times. This notice must be displayed at the house 20 days before any sale can take place. They also have to give you the last notice between 10 and 30 days prior to the sale.
You can reinstate the loan if you are willing to pay back the money that you have failed to pay so far, along with any additional fines and fees. You have roughly three months to do this, as you can do it in the period between the first notice and the sale itself.
One option that you have after you get the notice is to file for Chapter 7 bankruptcy, if applicable. This will automatically generate what is known as a “stay.” In essence, this just means that the bankruptcy proceedings are more important, so the foreclosure has to stop until they are resolved. This does not absolve you of what you owe or eliminate the foreclosure, but it can basically put the whole situation on pause. The result may be that you find a way to catch up on your payments, and then the lender may decide to drop the foreclosure case.
Utah law does have protections for members of the military, as shown in the Civil Relief Act. Generally speaking, a foreclosure must wait until a military member returns from active duty. In Utah, this also goes for members of the National Guard.
At the end of all of this, if you do end up having your home taken from you, you do not lose it as soon as the lawsuit concludes. Instead, the law mandates that you be given five days to leave the home with your belongings. The foreclosing party is able to file for an eviction if you do not leave after that point, but they cannot file for it until the five days are up.
Going through a foreclosure can be time-consuming and confusing. To make sure that you retain all of your rights, that you understand what is required of you, and that you fully know how all of the applicable laws work, it may be wise to get assistance from legal professionals.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.