Help on next steps to close a deal before Foreclosure - Utah

[Bryce Till]

Hello, 

I live in Utah. I have been in discussion on trying to buy a house as my primary with the below fact pattern and I am hoping someone can help provide specific next steps so  I can pursue this deal. 

1. Owner wants to sell and avoid foreclosure/auction

2. Buyer can pay in cash

3. Owner is 10 months delinquent on mortgage payments (only have sellers word to substantiate)

4. from what I have been told about the note on the house, enough equity exist in the house that the sale price will cover the "payoff" amount (only have sellers word to substantiate)

5.  To my knowledge, there are no other liens or notes besides the primary mortgage (only have sellers word to substantiate)

6. No RE agents/title companies/lawyers involved at this time. 

Considering the above fact pattern, what would be my next steps considering Utah RE laws? A couple question come to mind.

Considering the time frame of delinquency what needs to be considered with the bank who owns the note? 

If a price is agreed between the seller and buyer, what would be next steps? 

Thank you for your time and help!

[William Hochstedler]

Get it under contract and take the whole package to a title company.

They will get seller's authorization to order payoffs, etc.

You can check public records to see if a Notice of Default has been filed against the property.  This will tell you if the bank has begun foreclosure proceedings.  If it has, the next step will be to contact the trustee (who filed the NoD) and see if a sale date has been set.  That will tell you your absolute deadline.

If you need further information from the bank before putting it under contract.  Your best bet is to get with the seller and call the bank together.  They won't be able to give you a pay-off but should be able to give you a reinstatement amount.

Unless the sale date is in the next couple of weeks, there's not much Utah foreclosure law that you need to know.  Simply move forward with the purchase with the seller warrantying clean title.  The title company will help you clear up any judgments and/or defaults to make sure everything gets paid off at closing.