- Who sends it
- The lender, through a lawsuit in district court served on you with a summons
- What it starts
- 21 days after service in Utah (30 if served outside Utah) to file an answer
- Do this first
- Check the filing date against the sale date and contact Utah Legal Services or a lawyer
What this document is in Utah
Utah Code § 57-1-32 allows an action to recover the balance due on the loan "at any time within three months after" a trustee's sale. The complaint must state the entire debt, the sale price and the fair market value of the home on the sale date.
The case is an ordinary civil lawsuit. Under Utah Rule of Civil Procedure 12(a), you must file and serve an answer within 21 days after the summons and complaint are served on you in Utah, or 30 days if you were served outside Utah, unless a statute or court order says otherwise.
What it does and does not mean
- It is a claim, not a judgment. The lender must prove it.
- A low auction price does not set what you owe. Before judgment, the court must find the fair market value on the sale date, and the judgment cannot exceed the debt with interest, costs and sale expenses minus that value (§ 57-1-32).
- The side that wins gets its costs and reasonable attorney fees. If you defend and win, you can ask for yours (§ 57-1-32).
- A demand letter is not a lawsuit. If no case was filed within three months after the sale, ask legal aid whether the claim under this statute is barred.
The deadlines and how to count them
- Filing deadline for the lender: three months after the trustee's sale date. Compare the date stamped on the complaint with the sale date in your trustee's deed or sale notice.
- Your answer: 21 days after you were served in Utah, or 30 days if served outside Utah (Utah R. Civ. P. 12(a)). Count calendar days, starting the day after service.
- If you do not answer on time, the lender may ask for a default judgment.
See deficiency judgments in Utah for more on the rules.
What to do this week
- Write down the date you were served and count 21 days.
- Contact Utah Legal Services or a licensed attorney. The Utah State Bar's Find a Lawyer page lists private lawyers.
- Gather proof of what the home was worth on the sale date, such as an appraisal, a tax assessment or recent sales of similar homes nearby.
- Check the numbers in the complaint: the debt, the sale price, the fair market value and the fees.
- File your answer on time, even if you plan to settle.
Help and warnings
The Utah State Courts self-help center explains how to answer a civil case and has forms. More help is on the Utah foreclosure help page.
- Do not ignore court papers. A default judgment can lead to collection against your wages or accounts.
- Be careful with anyone who offers to settle the debt for you for an upfront fee.
The rest of the Utah process
See how foreclosure works in Utah, the timeline, ways to stop it and free help in Utah, or read the national guide to this letter.
Common questions
How long does a Utah lender have to sue me after a trustee's sale?
Three months after the sale, under Utah Code § 57-1-32. A lawsuit filed after that is outside the time the statute allows. Ask legal aid or a lawyer to check the dates.
How much can a Utah lender get in a deficiency judgment?
No more than the debt, interest, costs and sale expenses, including trustee's and attorney's fees, minus the home's fair market value on the sale date as found by the court (Utah Code § 57-1-32).
How long do I have to answer a Utah deficiency lawsuit?
21 days after the summons and complaint are served on you in Utah, or 30 days if you are served outside the state, unless a statute or court order sets a different time (Utah R. Civ. P. 12(a)).
Other Utah letters
- Notice of intent to file a notice of default (pre-default notice with single point of contact)In Utah, before a notice of default is recorded on a home you live in, a bank or credit union lender or its servicer must warn you in writing. The letter lists exactly what it takes to cure, gives you a date at least 30 days away, and names one person to talk to about foreclosure relief. No foreclosure has been recorded yet.
- Notice of DefaultIn Utah, the trustee starts a trustee's sale foreclosure by recording a notice of default with the county recorder. For three months after recording, you can stop the foreclosure by paying only the past-due amount plus costs and fees actually incurred. After that, stopping the sale usually takes the full balance or the servicer's agreement.
- Notice of Trustee's SaleThe Notice of Trustee's Sale sets the date, time and courthouse where your Utah home will be auctioned. It comes only after the three months following the notice of default. After a Utah trustee's sale there is no right to buy the home back, so the days before the sale matter most.
- Notice to quit and unlawful detainer (eviction) summons after a trustee's saleAfter a Utah trustee's sale, the former owner becomes an unlawful detainer only after staying past a notice to quit from the buyer. If you do not leave, the buyer can file an eviction case, and the summons gives you just three business days to respond. Utah also tells the court to triple damages in these cases, so act quickly.
- Court clerk's notice of deposited excess proceeds from a trustee's saleWhen a Utah trustee's sale brings in more than the costs and the loan, the trustee pays the extra to the people legally entitled to it or deposits it with the district court clerk. If it is deposited, the clerk must notify listed claimants within 15 days. You claim the money by filing a petition, and other claimants get 60 days to object.