The second quarter of 2013 saw a significant increase in foreclosure starts throughout the country. Nationally, foreclosure activity rose 11 percent during May. Utah foreclosures rose nearly 16 percent during this same time period. However, overall Utah foreclosure activity was still down by 29 percent for the same month in the previous year.
Most housing experts believe that this uptick in foreclosure activity during May is just the result of lenders finally pushing through the last of the bad loans that have been ending on their books for the last several years. Other indicators in the market point to good news in the housing market and this is just the last hump before full recovery can be claimed.
Understanding The Utah Foreclosure Process
Utah foreclosures is conducted through the non-judicial method. This means that the lender does not have to seek Court approval to file notice of foreclosure. Once a mortgage has entered into default, the lender simply records the default with the Court and sends the owner a notice of foreclosure.
Utah foreclosure laws require that the lender notify the borrower within 10 days of filing a foreclosure notice with the county office. The law further demands that a foreclosure sale cannot be held until three months have passed since the time of the filing and only after a notice of foreclosure has been published in the local newspaper for three consecutive weeks.
Utah foreclosure sales are conducted on the steps of the county courthouse in which the property is located. The homeowner has until noon on the day before the sale to make the loan current or forfeit all rights to the property. Once the foreclosure sale has taken place, the owner is served with a "five days to vacate" notice. If they do not vacate within that time period, evection proceedings must be conducted.
Pricing On Utah Foreclosures
With home values continuing to rise on non-distressed properties, many Utah foreclosures are being sold at a higher price than in the recent past. At the peak of the housing crisis, Utah foreclosures were selling at 30 to 25 percent below market value. Now, these same types of properties are only seeing a discount of about 15 percent.
It is anticipated that many of these foreclosures will see even smaller discounts as home values continue to increase this year. Additionally, the increase in short sale activity in Utah is also affecting the prices of Utah foreclosures.
Home values have increased in Utah for at least 12 straight months. This wonderful trend in the housing market has made it possible for many homeowners who were struggling with underwater mortgages to rise into positive equity. As this happens, it becomes easier for them to refinance to a better term mortgage and avoid foreclosure.
Most experts believe that Utah foreclosures will continue to drop in numbers through the end of this year and the first two quarters of 2014. However, this outlook could change if there are any drastic changes to mortgage interest rates or unemployment levels during that time period.
Foreclosure.com is the leading online resource for listing foreclosures in Utah.
Orignal From: Foreclosure Process in Utah
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