Legal Alert: Utah Foreclosure Law Clarified by Utah Court of Appeals
In establishing a deficiency after a trust deed foreclosure sale in Utah, does the "fair market value" limitation of U.C.A. § 57-1-32 require consideration of "senior encumbrances" against the property if the foreclosing lender holds a junior lien? That was the question of first impression facing the Utah Court of Appeals in the recent case of Capital Assets Financial Services v. Jordanelle Development, LLC et al, 2010 UT App. 385, Case No. 20100159-CA (December 23, 2010). Fortunately for lenders, the Utah Court of Appeals answered this question in the affirmative.
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