Marcus borrowed $320,000 to purchase a home in Provo, Utah. The lender secured the loan with the standard Utah security instrument. Six months later, Marcus stopped making payments. Which party has the legal authority to initiate the non-judicial foreclosure process on Marcus's property?
Correct Answer
D) The trustee, by recording a Notice of Default on behalf of the beneficiary
Under Utah's Trust Deed Act (Utah Code Ann. § 57-1-23 and § 57-1-24), the trustee — the neutral third party holding title under the trust deed — has the power of sale and initiates non-judicial foreclosure by recording a Notice of Default. The trustee acts at the direction of the beneficiary (lender) but holds the legal authority to conduct the sale. This is the defining feature of Utah's non-judicial foreclosure system.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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