In my role serving as a state lawmaker, I have the opportunity to hear many bills on a broad array of subjects. One of the bills that recently came to our Business and Labor Standing Committee deals with some meaningful changes to the foreclosure process.
Under current law, a foreclosure is initiated by notice from a mortgage company's or a lien holder's attorney stating that a Notice of Default (NOD) has been filed at the County Recorders office. The law gives the homeowner 90-days after that filing to pay the past due amount plus all legal fees associated with the NOD filing. After the 90-day period, the place and time of the foreclosure sale is published in a local newspaper for three weeks prior to the sale date. The sale is in compliance with law when the 90 day and 3-week requirements are met.
In SB 130 - Trust Deed Foreclosure Amendments, Utah's foreclosure process would be changed. Rather than a strict 90-day period beginning with the filing of an NOD, the bill creates a 30-day buffer starting on the date an attorney gives a homeowner notice of the intent to file an NOD. Then, 30 days after the notice is issued, the attorney can record an NOD.
This change effectively gives the the homeowner 120 days plus 3 weeks to cure their delinquency before a foreclosure auction on the courthouse steps. This gives homeowners a greater opportunity to cure the default or to workout other options like a short sale of their property.
This bill will be heard on the Floor of the House of Representatives shortly where it will then head to the Governor's office for his signature.
If you or someone you know owe more than your home is worth or are experiencing a hardship making mortgage payments and want to review the choices available, CONTACT ME, and we can set up a private meeting to explore the various options.
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