Are Loan Modifications Still Needed in Utah?


Utah ranked fifth in the nation for foreclosure filings. In 2009, the top state foreclosure rates included Nevada (10.17%), Arizona (6.12%), Florida (5.93%), California (4.75%), and Utah (2.93%).

Utah homeowners need much help with loan modifications. But not anyone can do a loan modification. Utah Code has been interpreted by the Utah Division of Real Estate to require only Utah-licensed Principal Lending Managers to engage in loan modifications. Utah Code even limits Utah-licensed attorneys to assist with loan modifications if the attorneys become “principally engaged” in this mortgage area. That is, an attorney may assist with loan modifications. But once lawyer’s practice is considered principally engaged in loan modification clients, the Utah Code states that the lawyer be licensed under the Utah Division of Real Estate.

Moreover, loan modification companies from other states unlicensed by the Utah State Bar or the Utah Division of Real Estate are soliciting Utah home owners. This can pose a challenge for homeowners who seek retribution if their file not worked by the unlicensed individuals or companies. There is hope for Utah homeowners, however. There are Utah attorneys and licensed mortgage companies that are willing and capable of helping out the many struggling home owners.

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Published In: Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jeff Butler, PEARSON, BUTLER & CARSON, PLLC | Attorney Advertising

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