Legal Question in Consumer Law in Utah

Mortgage company kept my escrow funds after refinance.

We purchased a home in utah. The mortgage company is not in utah. When we refinanced our loan they kept all of the funds in our escrow account. They refunded the monies from our buydown funds. They claimed that we owed them 2 payments we proved that the payments were paid on time and that they were the ones that cashed the check. Then they claimed that the payoff they gave the new mortgage company did not include 1 month of interest and that we owed them interest for the previous month as well. Now they have reported a late payment to our credit. Can I file a small claim in Utah even though the mortgage company is located on the East coast?


Asked on 3/26/04, 5:02 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Mortgage company kept my escrow funds after refinance.

Yes you can file here since the contract was entered into in Utah and the subject of the contract, the mortgage and home are here. The problem is that the company is not here and in order to enforce the lawsuit you must to to the state where the mortgage company is to execute on the order. You also may have a problem filing in Utah if the mortgage note has a clause which states where venue is for legal action. You will have to read it to find out. It may also have other procedures to resolve the conflict.

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Answered on 3/26/04, 6:15 pm


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