Utah Code 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
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Terms Used In Utah Code 57-1-31.5
Contract: A legal written agreement that becomes binding when signed.
Deed: The legal instrument used to transfer title in real property from one person to another.
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Trustee: A person or institution holding and administering property in trust.
Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
“Approved delivery method” means delivery by:
(i)
certified or registered United States mail with return receipt requested; or
(ii)
a nationally recognized letter or package delivery or courier service operating in the state that provides a service for:
(A)
tracking the delivery of an item; or
(B)
documenting:
(I)
that the item was received by the intended recipient; or
(II)
a refusal to accept delivery of the item.
(b)
“Compensation” means anything of economic value that is paid, loaned, granted, given, donated, or transferred to a trustee for or in consideration of:
(i)
services;
(ii)
personal or real property; or
(iii)
other thing of value.
(c)
“Interested party” means a person with a right under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.
(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.
(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)
(a)
(i)
An interested party may submit a written request to a trustee for a statement of the amount required to be paid:
(A)
to reinstate an obligation secured by a trust deed; or
(B)
to pay off a loan secured by a trust deed.
(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.
(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.
(iii)
An interested party submitting a reinstatement statement or payoff statement to a trustee shall submit the statement to the trustee:
(A)
at the address specified in the trust deed for notices to the trustee; or
(B)
at an alternate address approved by the trustee for delivery of mail or notices.
(iv)
A trustee is considered to have received a request submitted under Subsection (2)(a)(i) if:
(A)
the interested party submitted the request through an approved delivery method; and
(B)
documentation provided under the approved delivery method indicates that:
(I)
the request was delivered to the trustee; or
(II)
delivery of the request was refused.
(b)
(i)
A trustee who receives a written request under Subsection (2)(a) shall provide the statement to the interested party.
(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:
(A)
with all delivery costs prepaid; and
(B)
addressed to the interested party at the address provided in the request.
(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.
(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:
(A)
cancel the trustee’s sale; or
(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):
(a)
a detailed listing of any of the following that the trustor would be required to pay to reinstate or payoff the loan:
(i)
attorney fees;
(ii)
trustee fees; or
(iii)
any costs including:
(A)
title fees;
(B)
publication fees; or
(C)
posting fees; and
(b)
subject to Subsection (4), a disclosure of:
(i)
any relationship that the trustee has with a third party that provides services related to the foreclosure of the loan; and
(ii)
whether the relationship described in Subsection (3)(b)(i) is created by:
(A)
an ownership interest in the third party; or
(B)
contract or other agreement.
(4)
Subsection (3)(b) does not require a trustee to provide a trustor:
(a)
a copy of any contract or agreement described in Subsection (3)(b);
(b)
specific detail as to the nature of the ownership interest described in Subsection (3)(b); or
(c)
the amount of compensation the trustee receives related to the foreclosure of the loan under a relationship described in Subsection (3)(b).
