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2018 Utah Code
Title 78B - Judicial Code
Chapter 2 - Statutes of Limitations
Part 3 - Other than Real Property
Section 313 - Action to recover deficiency after short sale.
Universal Citation: UT Code § 78B-2-313 (2018)
78B-2-313. Action to recover deficiency after short sale.
Amended by Chapter 278, 2013 General Session
- (1) As used in this section:
- (a) "Deficiency" means the balance owed to a secured lender under a secured loan after completion of a short sale of the secured property.
- (b) "Obligor" means the person or persons obligated to pay a secured loan.
- (c) "Secured lender" means the person or persons to whom the obligation under a secured loan is owed.
- (d) "Secured loan" means a loan or other credit for personal, family, or household purposes secured by a mortgage or trust deed on secured property.
- (e) "Secured property" means single-family, residential real property located in the state that is the subject of a mortgage or trust deed to secure a secured loan.
- (f) "Short sale" means a sale:
- (i) of secured property;
- (ii) by the owner of the secured property;
- (iii) that results in the secured lender being paid less than the balance owing under the secured loan; and
- (iv) made with the secured lender's consent and resulting in the secured lender releasing the mortgage or reconveying the trust deed on the secured property.
- (2) An action to recover a deficiency is barred unless it is commenced no more than three months after the date of recording of a release of mortgage or reconveyance of trust deed with respect to secured property and resulting from a short sale of that property.
- (3) Subsection (2) does not apply if the obligor or owner engaged in fraud in connection with the short sale.
- (4) Subsection (2) does not apply to an agreement that:
- (a) is executed:
- (i) between one or more obligors under a secured loan and the secured lender; and
- (ii) in connection with a short sale; and
- (b) obligates an obligor to pay some or all of a deficiency.
- (a) is executed:
Amended by Chapter 278, 2013 General Session
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