§ 57-1-31.5 — Reinstatement or payoff statement -- Timeliness of request -- Trustee's duty to provide statement -- Statement to include accounting of costs and fees.

Utah § 57-1-31.5

• Jurisdiction: Utah
• Title 57: Real Estate
• Ch. 57-1: Conveyances

Text

(1) As used in this section:

(1)(a) "Approved delivery method" means delivery by:
(1)(a)(i) certified or registered United States mail with return receipt requested; or
(1)(a)(ii) a nationally recognized letter or package delivery or courier service operating in the state that provides a service for:

(1)(a)(ii)(A) tracking the delivery of an item; or
(1)(a)(ii)(B) documenting:
(1)(a)(ii)(B)(I) that the item was received by the intended recipient; or
(1)(a)(ii)(B)(II) a refusal to accept delivery of the item.
(1)(b) "Compensation" means anything of economic value that is paid, loaned, granted, given, donated, or transferred to a trustee for or in consideration of:
(1)(b)(i) services;
(1)(b)(ii) personal or real property; or
(1)(b)(iii) other thing of value.
(1)(c) "Interested party" means a person with a right under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.
(1)(d) "Payoff statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required to pay off a loan secured by a trust deed.
(1)(e) "Reinstatement statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.
(2) (2)(a) (2)(a)(i) An interested party may submit a written request to a trustee for a statement of the amount required to be paid:

(2)(a)(i)(A) to reinstate an obligation secured by a trust deed; or
(2)(a)(i)(B) to pay off a loan secured by a trust deed.
(2)(a)(ii) (2)(a)(ii)(A) A request for a reinstatement statement is not timely unless the trustee receives the request at least 10 business days before expiration of the three-month period under Section 57-1-31 to reinstate an obligation.
(2)(a)(ii)(B) A request for a payoff statement is not timely unless the trustee receives the request at least 10 business days before the trustee's sale.
(2)(a)(iii) An interested party submitting a reinstatement statement or payoff statement to a trustee shall submit the statement to the trustee:

(2)(a)(iii)(A) at the address specified in the trust deed for notices to the trustee; or
(2)(a)(iii)(B) at an alternate address approved by the trustee for delivery of mail or notices.
(2)(a)(iv) A trustee is considered to have received a request submitted under Subsection (2)(a)(i) if:

(2)(a)(iv)(A) the interested party submitted the request through an approved delivery method; and
(2)(a)(iv)(B) documentation provided under the approved delivery method indicates that:
(2)(a)(iv)(B)(I) the request was delivered to the trustee; or
(2)(a)(iv)(B)(II) delivery of the request was refused.
(2)(b) (2)(b)(i) A trustee who receives a written request under Subsection (2)(a) shall provide the statement to the interested party.
(2)(b)(ii) A trustee is considered to have provided the statement requested under Subsection (2)(a) on the date that the trustee deposits the statement with an approved delivery method:

(2)(b)(ii)(A) with all delivery costs prepaid; and
(2)(b)(ii)(B) addressed to the interested party at the address provided in the request.
(2)(c) (2)(c)(i) If the trustee provides a requested reinstatement statement later than five business days after the request is received, the time to reinstate under Section 57-1-31 is tolled from the date of the request to the date that the trustee provides the statement.
(2)(c)(ii) If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff statement within five business days after the request is received, the trustee shall:

(2)(c)(ii)(A) cancel the trustee's sale; or
(2)(c)(ii)(B) postpone the trustee's sale to a date at least 10 business days after the trustee provides the statement.
(3) A trustee shall include with each statement required under Subsection (2)(a):

(3)(a) a detailed listing of any of the following that the trustor would be required to pay to reinstate or payoff the loan:
(3)(a)(i) attorney fees;
(3)(a)(ii) trustee fees; or
(3)(a)(iii) any costs including:

(3)(a)(iii)(A) title fees;
(3)(a)(iii)(B) publication fees; or
(3)(a)(iii)(C) posting fees; and
(3)(b) subject to Subsection (4), a disclosure of:
(3)(b)(i) any relationship that the trustee has with a third party that provides services related to the foreclosure of the loan; and
(3)(b)(ii) whether the relationship described in Subsection (3)(b)(i) is created by:

(3)(b)(ii)(A) an ownership interest in the third party; or
(3)(b)(ii)(B) contract or other agreement.
(4) Subsection (3)(b) does not require a trustee to provide a trustor:

(4)(a) a copy of any contract or agreement described in Subsection (3)(b);
(4)(b) specific detail as to the nature of the ownership interest described in Subsection (3)(b); or
(4)(c) the amount of compensation the trustee receives related to the foreclosure of the loan under a relationship described in Subsection (3)(b).

Legislative History

Amended by Chapter 24, 2010 General Session