How long does a bank have to pursue a deficiency judgment after a foreclosure in Utah

A question people always ask is ” Is Utah a deficiency state?” The answer is yes. Another common question “How long does a bank have to pursue a deficiency judgment after a foreclosure in the state of Utah?” This is question has a very interesting answer. I am not an attorney, but I talked with an attorney today who specializes in mortgage law and foreclosure law and he said that if a first mortgage forecloses they only have 3 months to take action and pursue a deficiency judgment in Utah. The 3 months begins the day the trustee sale takes place and is limited to the lender who takes the foreclosure action. So if there is a second or third mortgage lien that is wiped out by the foreclosure action of the first mortgage, they can still collect up to 6 years (may be less ask attorney about specific situation), or sue for a deficiency judgment for up to 6 years, but the foreclosing lender only has 3 months. First they must establish the deficiency amount by determining the fair market value of the property through on appraisal on the day of the sale and then sue, win and receive the judgment for the deficiency.  I found a couple of links that support what he told me in the Utah code and posted them below. (OK he told me where to look 😉

http://le.utah.gov/~code/TITLE57/htm/57_01_003200.htm

http://le.utah.gov/~code/TITLE57/htm/57_01_003400.htm

If you live in Utah County or Salt Lake County and would like to know what you options are to stop foreclosure and settle your mortgage debt please contact me.

Remember- Do NOT rely on this information regarding your specific situation. Please call an attorney or me for a reference.