Utah Limits Time for Deficiency Actions Following a Short Sale


On March 8, Utah enacted Senate Bill 42 to limit the time within which lenders can bring an action to recover a deficiency following a short sale. Lenders now have only three months following a short sale to file a deficiency action against a borrower to recover the balance of the debt. Prior to passage of SB 42, lenders had six years to bring such actions. This law became effective March 8, 2012.


Published In: Administrative Agency Updates, Finance & Banking Updates, Residential Real Estate Updates

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