Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Detailed Answer
1. Determine Your Eligibility and Deadline
Under Utah Code section 78B-6-1501, anyone claiming surplus proceeds from a foreclosure sale must file a petition within one year after the sale date. Surplus proceeds are the funds remaining after the lender recovers the loan balance, interest, fees and sale costs.
2. Locate Relevant Sale Information
Gather the foreclosure sale details:
- Sale date and location
- Property address and parcel number
- Sale price and amount applied to the debt
3. Draft the Petition
Your petition should include:
- The case number and court where the foreclosure occurred
- The foreclosure sale date
- An explanation of your interest in the surplus proceeds (borrower, junior lienholder, or other claimant)
- The amount of surplus you believe you are entitled to
- A request that the court order payment of surplus funds to you
4. File and Serve the Petition
Submit your petition to the district court clerk in the county where the sale occurred. Pay the required filing fee. Serve copies on all interested parties under Utah Rule of Civil Procedure 42, including the foreclosure judgment creditor (the lender).
5. Attend the Hearing
The court will schedule a hearing. Present evidence of your claim, such as loan statements, payoff letters or lien documents. If the court finds you entitled, it will issue an order directing payment of the surplus.
6. Obtain and File the Order of Distribution
Once the court signs the order, file it with the clerk. Provide it to the county treasurer or sheriff for disbursement. You may need to complete specific forms provided by the local court.
Helpful Hints
- Act quickly: You have only one year from the sale date to file.
- Check court websites for petition forms and fee schedules.
- Use certified mail or personal service to prove your petition was served.
- Keep copies of all filings and correspondence.
- Consider consulting an attorney if you face competing claims to the surplus.