Keep your home
Stop a Foreclosure in Utah
If you have received a notice of default or a notice of trustee's sale, you still have options. The clock is running, though. Filing bankruptcy stops a foreclosure sale immediately, and Chapter 13 can give you years to catch up on what you owe while you stay in your home.
The short version
Halt a trustee's sale and catch up on missed mortgage payments while you stay in your home.
How foreclosure works in Utah
Most Utah home loans are secured by a trust deed, which allows the lender to foreclose without going to court through a trustee's sale. The process usually begins with a recorded notice of default. After a waiting period, the trustee can publish a notice of sale and sell the property at auction.
Because the process happens outside of court, it can move quickly once it starts. The sooner you get advice, the more options you have.
Your options for keeping the house
- Chapter 13 bankruptcy to stop the sale and repay arrears over time
- Loan modification or a repayment agreement with your servicer
- Chapter 7 bankruptcy to eliminate other debts so you can afford the mortgage
- Reviewing the lender's notices and paperwork for errors
If keeping the home is not realistic
Sometimes the right goal is a clean exit rather than keeping the house. Bankruptcy can eliminate a deficiency balance or second-mortgage debt that would otherwise follow you after a foreclosure, so you can start over without that debt.
Stop Foreclosure: common questions
Can bankruptcy stop a foreclosure the day before the sale?
Filing a bankruptcy petition before the sale takes place generally stops it through the automatic stay. Waiting until the last minute is risky, though, and can limit your options. Recent earlier bankruptcy filings can weaken the stay. Call as soon as you receive a notice.
Will I lose my house if I file bankruptcy?
Not necessarily. Many homeowners keep their homes in both Chapter 7 and Chapter 13. Whether you can depends on your equity, Utah's homestead exemption, and whether you can keep up with ongoing payments.
Should I try a loan modification first?
It can be worth pursuing, but modifications take time and are not guaranteed. A bankruptcy filing can protect you while other options are explored. We can help you weigh both.
This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Results depend on the facts of each case. See our full bankruptcy FAQ.
Related services
- Chapter 13 BankruptcyKeep your home and car with one affordable three-to-five-year plan, and stop foreclosure.
- Stop RepossessionKeep your car, catch up on missed payments and, in some cases, lower the loan balance.
- Chapter 7 BankruptcyWipe out credit cards, medical bills and personal loans, usually in a few months.
Talk to a Utah bankruptcy attorney for free
Every situation is different. A free consultation is the fastest way to learn which option fits yours. Ask about $0-down options.