Received a Notice of Default in Utah? 4 Options to Stop Foreclosure

Received a Notice of Default in Utah? Don't Panic—Act Now to Save Your Equity

Receiving a "Notice of Default" in the mail is terrifying, but it does not mean you have lost your home—yet. In Utah, the foreclosure process has a specific timeline, and you have rights that protect you.

The worst thing you can do is ignore the mail. Time is your most valuable asset right now. As a local Distressed Property Specialist, I help homeowners understand their options before the bank takes control.

The Utah Foreclosure Timeline (Know Your Deadlines)

Unlike some states that drag on for years, Utah is a "Non-Judicial" foreclosure state, meaning the process moves relatively fast.

• Day 1-90: Missed Payments. The lender calls and sends letters.
• The "Notice of Default" (NOD): This is the official start. Once recorded at the County Recorder's office, the clock starts ticking.
• The "Cure Period" (3 Months): By Utah law, you have exactly 3 months from the filing of the NOD to bring the loan current.
• The "Notice of Sale": After the 3 months expire, the Trustee can schedule an auction in as little as 3-4 weeks.

Option 1: Reinstatement (The Best Case)

If you have experienced a temporary hardship that is now over (like a job loss that is resolved), you can pay only the missed payments, interest, and legal fees to bring the loan current. You do not have to pay off the entire mortgage balance.

Option 2: The "Equity Sale" (Protect Your Wealth)

If you cannot afford the catch-up payment, do not let the bank foreclose. In 2026, many Utah homeowners still have significant equity.

• The Strategy: We list your home immediately and market it aggressively for a quick sale.
• The Result: You sell the home, pay off the bank, and walk away with a check for your remaining equity. This protects your credit score from a foreclosure record and gives you cash for a fresh start.

Option 3: Short Sale (If You Owe More Than It’s Worth)

If property values have dipped or you have high-interest liens that exceed the home's value, an Equity Sale might not work. In this case, we negotiate a Short Sale.

This is where the bank agrees to accept less than the full mortgage balance to avoid the cost of foreclosure. You likely won't walk away with cash, but you avoid the devastating impact of a foreclosure on your record.

Conclusion

Time is your enemy in pre-foreclosure. Ignoring the problem won't stop the auction, but taking action today can save your financial future.