Court: Utah Supreme Court Citation: 2017 UT 2
Opinion Date: January 11, 2017
Areas of Law: Real Estate & Property Law
Utah Code 57-1-21 requires the trustee of a nonjudicial foreclosure sale to maintain a physical office location within the state. In this case, Samuel Adamson refinanced his home through a deed of trust and then defaulted on the loan. ReconTrust sold property in a nonjudicial foreclosure sale to BAC Home Loans Services, LP. Distressed Asset eventually purchased the property.
When Distressed Asset filed an unlawful detainer action against the Adamsons, the Adamsons argued that the trustee’s sale was defective because ReconTrust violated section 57-1-21. The district court dismissed the unlawful detainer action, concluding that the failure to satisfy section 57-1-21 rendered the trustee sale void ab initio.
Here, the Supreme Court clarified the differences between void, voidable, and valid trustee’s deeds under Utah law. The Supreme Court reversed, holding that the district court erred in dismissing the action because, under the circumstances of this case, the violation of the statute did not result in a void or voidable trustee’s deed; remanded.
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