Legal Question in Real Estate Law in Utah

Re: Forced sale to satisfy judgement

Liens against your home including mortgages, tax liens and the Labor Commission liens have priority over any subsequent change of title from your name to a trust - meaning that they can foreclose. Lienholders will be able to continue to chase you to collect monies which are not paid at the foreclosure. The foreclosure proceeding is an auction and anyone can bid. Generally the bids are far below the market value of the house. Whomever wins the bid obtains title to the home and may take immediate possession (you can be evicted). The amount bid is used to pay off lien holders in the order of their recording. Generally that means the first mortgage is paid first, and the newest lien last. Usually there is not enough money to go around. Any amounts owed after all of the bid money is allocated can still be collected through judgments and garnishments.

At this point you should immediately talk to a banruptcy attorney to find out what your options are. Usually a bankrupcty can clear deficiency debts, although certain tax and government debts cannot be eliminated - but under a Ch 13 may be able to be paid over time. The filing of bankruptcy can stop - for a while - the foreclosure process and will give you more time to seek a solution.