A Notice of Default has been recorded against Sandra's property in Salt Lake County. Sandra's lender has informed her that the trustee's sale is scheduled for next month. Sandra wants to stop the sale by paying all overdue amounts, late fees, and costs. Under Utah law, what is Sandra's right in this situation?
Correct Answer
A) Sandra may reinstate the loan by curing the default before the trustee's sale occurs
Under Utah Code Ann. § 57-1-31, a trustor (borrower) has the right to reinstate the loan by curing the default — paying all overdue amounts, costs, and fees — at any time before the trustee's sale occurs. This pre-sale reinstatement right is the borrower's primary protection in Utah's non-judicial foreclosure system. Once the sale is completed, however, there is no statutory right of redemption in Utah.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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