Legal Question in Real Estate Law in Utah

Loan in Default

We live in a home that has been sold at auction to a company that we owe money to. They have now the deed of trust in their name as recorded by the county recorder. The original lender is trying to collect on the debt through a debt collector. Who has jurisdiction in this case, the original mortgage holder or the one who holds the deed of trust?


Asked on 6/26/02, 8:50 pm

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

Re: Loan in Default

The purchaser of the home owns the house. The collection agency is collecting on the deficiency, the difference between the amount paid by the purchase and the amount you owed to the lender. You will have to pay the deficiency or declare bankruptcy, unless your income is so low that you are "judgment proof" - meaning that you have no assets nor income sufficient to pay the deficiency under the law.

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Answered on 6/27/02, 12:16 pm


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