You have options. We'll help you find the best one.
Jeff & Lynn will walk you through your options in plain language. Your first consultation is free and confidential, and you're under no obligation to hire us. If you decide to sell, including through a short sale, we're paid a commission under a written listing agreement that spells out the amount before you sign anything.
Our promise to homeowners
We will never ask you to sign your home over to us, to a company we own, or to anyone we do business with. We will never ask you to send your mortgage payment to anyone but your loan servicer, and we will never tell you to stop talking to your lender, attorney, credit counselor or housing counselor. Before we do any work on your behalf, we'll put what we'll do, and how we're paid, in a written agreement.
Important notice: Marchant Real Estate Group and eXp Realty, LLC are not associated with the government, and our services are not approved by the government or your lender. Even if you work with us, your lender may not agree to a short sale or other alternative.
Two first steps
Call your lender today
If you haven't already been in communication with your lender, call them today. They do not want to foreclose if there's another solution. Open the conversation by saying you'd like to explore alternatives to foreclosure.
Set up a consultation with us
Fill out the form below or simply give us a call to schedule a private consultation about your situation. The best way to see if we're a good fit is to spend a little time face to face.
Alternatives to a Utah foreclosure
Your lender may prefer an alternative to foreclosure too. Here are the most common paths. Your loan servicer or a HUD-approved housing counselor can help with repayment plans, loan modifications and forbearance. We can help if selling, including a short sale, is the right fit.
Reinstatement
Pay the entire default amount plus interest, attorney fees, late fees and taxes. Get the total from the attorney handling the foreclosure.
Refinance
Usually only possible if problems are caught early and there's enough equity. Some lenders look past credit damage and lend on the property, often at a higher rate.
Repayment plan
If you can make the monthly payment but can't catch up on back payments, ask your loan servicer whether you qualify for a repayment plan. A HUD-approved housing counselor can help you ask, for free.
Loan modification
A short-term or permanent change to your loan terms, such as a lower rate or longer term. You must show the hardship that caused missed payments is fixed.
Special forbearance
Your lender may temporarily reduce or suspend payments based on your financial situation, if you can show you'll meet the new plan.
Pre-foreclosure sale
If you have equity, you may sell without lender approval before the foreclosure timeline ends, and keep the cash left over.
Short sale
If you owe more than the home is worth, your lender may accept less than the amount owed to release their lien.
Deed-in-lieu
Voluntarily give the property back to the bank instead of foreclosure. May be complicated if you have a home equity loan or other liens.
Bankruptcy
Can liquidate debt or allow more time: Chapter 7 (liquidation), Chapter 13 (3 to 5 year repayment plan), Chapter 11 (business reorganization).
You have questions about foreclosure. We have answers.
Don't see your question? Send it to us. We'll respond promptly.
Ask a questionI received a "Notice of Default." What does that mean?
It means a notice has been recorded saying your loan is in default and the home may be sold at a trustee's sale. For a trust deed foreclosure in Utah, you generally have three months after the notice of default is recorded to reinstate the loan by paying the past-due amount plus allowed costs and fees (Utah Code 57-1-31). The trustee can't give notice of a sale until at least three months after the notice of default is recorded (Utah Code 57-1-24), and the sale must be advertised and posted before it happens (Utah Code 57-1-25). If you want a reinstatement figure, the trustee must receive your written request at least 10 business days before the three-month period ends (Utah Code 57-1-31.5). Because these dates matter, contact your loan servicer, a HUD-approved housing counselor, or an attorney soon to confirm your exact deadlines.
How do I stop or postpone the foreclosure on my home?
First, contact your lender or loan servicer as soon as possible and ask what foreclosure alternatives they offer. A HUD-approved housing counselor can help you at no charge (see the list below). If selling may be the right answer, including a short sale, Jeff and Lynn can explain how that works and what it would cost you. Contact us for a confidential consultation.
If your home is foreclosed on, you may face:
- Severe credit damage. A foreclosure can stay on your credit report for up to 7 years.
- A possible deficiency judgment. Your lender may sue for the balance after the auction, which could attach to other assets or wages.
There can be other effects too, on employment opportunities and rental agreements. We can help you understand how foreclosure could impact you.
What is a loan modification?
A change to one or more of the existing terms of your loan. If you're in default, your lender may work with you to make the mortgage more affordable, for example by lowering the interest rate or spreading the loan over a longer period.
What is a short sale?
The sale of a property for less than the amount owed. For example, if you owe $200,000 but the home is worth $185,000, your lender may accept $185,000 (minus closing costs and commissions) to release their lien. It's called a short sale because the lender releases the lien "short" of the amount owed.
What is a deficiency judgment?
When a house sells (by short sale or foreclosure) for less than the outstanding mortgage debt, the difference is called the deficiency. Utah law allows lenders to pursue the borrower for it. After a trustee's sale, the lender has three months to sue for a deficiency, and a court can't award more than the debt (plus costs) minus the home's fair market value on the sale date (Utah Code 57-1-32).
Can I do a short sale if I already filed bankruptcy?
Yes. It takes a little longer and is more complex, but we're very experienced working with Utah homeowners who have already filed bankruptcy.
What happens after foreclosure?
At the foreclosure auction, an investor buys the property with the highest bid. If no one bids, it goes back to the bank as an REO (Real Estate Owned) property. You'll then either be evicted or contacted by the new owner to work out another arrangement.
If I go through a short sale or foreclosure, who will rent to me?
We may be able to help. Nu-Start Properties, Inc., the rental company Jeff & Lynn own, looks at your current situation, not just past hardships. Renting from Nu-Start is never a condition of working with us, and working with us is never a condition of renting. If we don't have a home that fits, we'll do our best to point you to other landlords. See our rental qualifications (opens in a new tab).
HUD-approved counseling agencies in Utah
These agencies offer mortgage delinquency and default counseling, budgeting help and more. Please call ahead to confirm current services.
HUD-approved housing counselors can help with mortgage delinquency, repayment plans, loan modifications and forbearance, often at no charge. Use HUD's official search, or call 800-569-4287.
Find a HUD-approved housing counselor
Counselor lists change. The HUD search is the current official source. You can also ask the Utah Department of Financial Institutions how to look up your mortgage company.
Request a confidential consultation.
We'd be glad to help you understand your options and reach the best outcome available.
Questions? We have answers.
Call or email. No pressure, and we respond promptly.