is there a law on how long the 2nd has to seek deficiency judgment?

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I am in Utah. I had a foreclosure sale complete 3/2002. A deficiency judgment was never sought the 1st and 2nd was the same lender, the screen print for the 2nd shows written off foreclosure. they sold the defaulted loan in 2005 and now that company starting 2007 is trying to collect starting on it and get a judgement. As far as i can tell the statute in Utah is 6 years for a note. They are trying to get a judgement based on the monthly installments that would be owing and saying they wont ask for any installments that are past the 6 year statute. Can they do that? They claim they OWN the debt now that they are the creditor. I can’t find in the law that references installments in the Utah code. I am reading that a mortgage isn’t consumer debt in the Utah code? please help

  1. Reply
    January 25, 2011 at 4:45 am

    Sounds like the state of California. In a foreclosure, a judgment can only go against the property, and if there is a deficiency, then too bad for the lender, because there is no deficiency judgment against the borrower. However, it isn’t like that in Utah. There a deficiency judgment is allowed.

  2. Reply
    Credit Guy
    January 25, 2011 at 4:55 am

    I am not sure about Utah, but in most states, once a home is foreclosed, their is no deficiency, usually with a mortgage when a lender forecloses, they loose all rights to collect on the remaining balance owed.

    Definitely check with a Real Estate Attorney. Some will give you a free consultation.

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