Utah Counties
State Auction Process in Utah
Utah is a tax lien state. In Utah, when property owners fail to pay their property taxes, the county government can place a tax lien on the property. The county then sells these tax liens to investors through public auctions. Investors who purchase the tax liens become lienholders and have the right to collect the delinquent taxes from the property owner.
When property owners fail to pay their property taxes, the county considers the taxes delinquent. The county, then, sends a notice and demand for payment to the property owner, informing them of the delinquent taxes and the consequences of non-payment.
If the delinquent taxes remain unpaid, the county holds a tax lien auction, typically conducted as a public auction or online auction. Investors can participate in the auction and bid on the tax liens. The highest bidder at the auction becomes the tax lien certificate holder. They acquire the right to collect the delinquent taxes, plus interest and any additional fees.
After the tax lien sale, the property owner has a redemption period during which they can repay the delinquent taxes and redeem the property. In Utah, the redemption period for tax liens is generally two years from the date of the tax lien sale. This means that property owners who have had their property sold in a tax lien auction have a period of two years to redeem the property by paying the delinquent taxes, accrued interest, and any additional fees associated with the tax lien.
If the property owner fails to redeem the property within the redemption period, the tax lien certificate holder may request an assignment of the property.
How to Remove a Tax Lien in Utah
To resolve a filed tax lien in Utah, there are two options available:
- Settle the Total Amount Owed: Clearing the tax lien requires paying the entire outstanding balance, including taxes, penalties, and interest. Once the full payment is made, the Utah State Tax Commission (USTC) will file a lien release, which is a public document signaling the removal of the lien.
- Dispute an Erroneously Filed Lien: Although uncommon, there are instances where government agencies mistakenly file liens. If you believe that a tax lien has been filed in error, you must provide supporting evidence. For tax liens, this entails submitting copies of your tax filings and proof of payments made to demonstrate that the lien was issued incorrectly.
Tax Levy Process in Utah
When other collection methods, such as notices, demands, and payment arrangements, have failed, the Utah State Tax Commission (USTC) may resort to a tax levy to recover the outstanding tax debt. The levy allows the USTC to seize various types of property, including bank accounts, wages, real estate, vehicles, and other assets that can be liquidated to satisfy the tax debt.
Before initiating a tax levy, the USTC is required to provide the taxpayer with written notice, typically referred to as a “Notice of Intent to Levy.” This notice informs the taxpayer about the impending levy, their rights, and the options available to resolve the tax debt before the levy is enforced.
If a tax levy is imposed, the USTC may sell the seized property at a public auction or through other means to generate funds to pay off the delinquent taxes. The proceeds from the sale are then applied towards the outstanding tax debt, including any penalties and interest accrued.
Foreclosure Process in Utah
In Utah, the foreclosure process is primarily a non-judicial process, meaning it does not require court involvement unless the borrower challenges the foreclosure. The foreclosure process typically follows these steps:
- Notice of Default: When a borrower defaults on their mortgage payments, the lender initiates the foreclosure process by sending a Notice of Default (NOD) to the borrower. The NOD specifies the amount owed, the defaulting terms, and provides a deadline for the borrower to cure the default.
- Notice of Trustee’s Sale: If the borrower fails to cure the default within the specified timeframe, the lender will record a Notice of Trustee’s Sale (NTS) with the county recorder’s office. The NTS includes the date, time, and location of the foreclosure sale, typically scheduled at least three months after the NOD.
- Publication and Posting: The NTS must be published in a local newspaper once a week for three consecutive weeks, with the last publication at least 20 days before the sale. Additionally, the NTS must be posted on the property and in a designated public location.
- Trustee’s Sale: The foreclosure sale, also known as a Trustee’s Sale, is held on the specified date and location. It is typically conducted as a public auction, where the property is sold to the highest bidder. The trustee, appointed by the lender, oversees the sale process.
- Redemption Period: In Utah, there is a redemption period after the foreclosure sale during which the borrower has the right to reclaim the property by paying the full amount owed, plus any additional costs and fees. The redemption period is generally 180 days but can vary depending on the circumstances.
- Eviction: If the borrower fails to redeem the property during the redemption period, the new owner (usually the winning bidder at the foreclosure sale) can initiate eviction proceedings to take possession of the property.
In Summary
The important points of the state auction process in Utah are summarised below-
- Type of auction– Tax lien
- Time and location– Varies according to counties
- Redemption period– Two years from the date of the tax lien sale
- Type of Foreclosure– Non- judicial
- Foreclosure Redemption Period– 180 days from the sale
Online Auction Resources
- Bid4Assets
- Auction.com
- Xome
- ServiceLink Auction – Utah
- Hubzu
- RealtyBid
- Williams Auction
- HUD Homes USA
- Bank Foreclosures Sale – Utah
- Treasury Auctions
- Utah Trust Lands – Land Sales
- RealtyTrac – Utah Foreclosure Auctions
- Housing Auctions – Utah
- TNT Auction – Salt Lake City
- Utah County Tax Sale Locations
- Salt Lake County Property Tax Sale