Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Utah, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments as stipulated in the loan agreement. Utah primarily uses two types of foreclosure processes: judicial and non-judicial. Judicial foreclosure involves the court system and is necessary when there is no power of sale clause in the mortgage agreement. Non-judicial foreclosure is more common in Utah and can be used when the mortgage contains a power of sale clause, allowing the lender to sell the property without court intervention after providing the borrower with the required notices. The process includes a pre-foreclosure period, the issuance of a notice of default, and a notice of sale, which must be published in a local newspaper. The property is then sold at a public auction to the highest bidder. The borrower has the right to reinstate the loan up to five days before the sale and may have a redemption period after the sale, depending on the circumstances. It is important for homeowners facing foreclosure to consult with an attorney to understand their rights and any potential defenses they may have.