Legal Question in Real Estate Law in Utah

When can someone forclose?

I have a mortgage (seller financed) on some recreational property. The mortgage payment is due on the 1st of the month with a grace till the 10th. After the 10th there is a late fee added to the payment. Over the past 9 months, I have missed the 1st but have made the payments before the 10th. there have been 2 or 3 times that the pament was after the 10th. On these occasions, all monies owed (including the late fees) have been paid before the next payment was due. The lender has now threatened to start forclosure proceedings if we do not make the payment by the 5th. Can they do this?


Asked on 7/11/01, 3:43 pm

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

Re: When can someone forclose?

The lender can only enforce the written terms of the mortgage note. The lender cannot make up new terms. If payment is due on the first and a grace period exists until the 10th, you are not in default until the 11th. Most notes provide an additional period where the lender gives notice of default and then there is an additional period to cure. After that a lender can commence foreclosure. The foreclosure process itself is fairly slow - it usually takes several months, during which you have the right to "cure" - make up past payments and late fees, etc.

The lender is probably trying to intimidate you into making payments more timely.

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Answered on 7/13/01, 10:00 am


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