Can the lender come after you for the rest? Deficiency judgments in Utah

Deficiency rules in Utah, point by point

• Deficiency after a trustee's sale

  Lawsuit within 3 months after the sale

  After a nonjudicial trustee's sale, the lender can start a court action for the balance due on the loan, but only within three months after the sale. The complaint must list the full debt, the sale price, and the home's fair market value on the sale date.

  Utah Code § 57-1-32

• Fair market value caps the judgment

  Before the court enters judgment

  The judge must find the fair market value on the sale date. The judgment cannot exceed your debt, with interest, costs and sale expenses including trustee's and attorney's fees, minus that value. A low auction bid does not set the amount.

  Utah Code § 57-1-32

• The winner can collect attorney fees

  At the end of the deficiency case

  In a deficiency case under the trust deed statute, the side that wins is entitled to its costs and reasonable attorney fees. That cuts both ways: if you defend and win, you can ask the court for your fees.

  Utah Code § 57-1-32

• Deficiency after a court foreclosure

  After the sheriff's sale

  If the lender foreclosed through a court case and the sale does not cover the judgment, the clerk dockets the remaining balance and the lender can collect it like any other judgment. It cannot use general collection against your other property until the home has been sold and the money applied.

  Utah Code § 78B-6-902

• Short sale or deed in lieu

  Before you sign

  The three-month limit and fair market value cap in section 57-1-32 apply after a trustee's sale. We did not find a Utah statute that sets deficiency rules for a short sale or deed in lieu, so the written agreement with your lender controls. Ask for a written waiver of any remaining balance.

  Utah Code § 57-1-32

• How long a judgment lasts

  8 years, can be renewed

  A Utah judgment lasts eight years from the date it is entered unless it is paid or renewed. A renewed judgment keeps its original date and priority, and the time limit starts over.

  Utah Code §§ 78B-5-202(1), 78B-2-311

The short answer in Utah

Common questions in Utah