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 😉

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.

How long does a short sale take in Utah?

Short sale timelines in Utah can vary depending on basically 8 things.

1. How many leans are on the property including mortgages, HOA liens,  judgements and tax liens etc.

2. Who is servicing the loans IE Chase, BOA, Wells, etc.

3. Who the investor holding the loan is, IE Fannie Mae, Freddie Mac etc.

4. If the short sale requires the approval of a PMI company, some are better to work with than others.

5. If the loan serviser has delegated authority to approve the short sale on behalf of the investor or if they will have to send it out for approval.

6. The performance of the buyer closing once the sale is approved.

7. The cooperation of the seller providing the necessary paperwork in a timely manner.

8. Who is negotiating and processing the paperwork and how they are handling the sale. (The agent, attorney or 3rd party negotiator)

Those things considered, you will have an idea of how long a short sale will take from the milestones that will take place below. Most of your average short sales will take between 2 and 6 months. Ideally you can get them done between 2 and 4 months. *95% of the short sales I have worked on are approved and close within 3 to 4 months after being submitted to the lender! (That is significantly higher than the national average) In fact the best statistics that I could find show that only somewhere between *8%and *15% of short sales initiated are actually completed at all. My average is significantly higher. The time line below shows a 90 to 120 day short sale. 30 to 60 days to assign a loss mitigator, 30 days for BPO’s and approvals and 30 days for the buyer to close.

If you are a home seller and want to short sell your house, it is important that you work with someone who has the specialized experience working with your lenders and can give you an accurate time frame and will help you settle your mortgage debt. Don’t make the mistake of thinking just any agent can complete a short sale and settle your debt.

If you are a short sale buyer and are interested in writing offers on short sales you need to work with an experienced short sale agent  who can help you pre-qualify each short sale deal by telling you exactly where it is at in the short sale/foreclosure process, how many liens are on the property and how good each lender is to work with.

For an estimate of time based you your specific situation with your lenders please contact me.