Presently when a homeowner is foreclosed on, the lien holder has 90 days from the Trustee Sale to file a lawsuit to act on their deficiency rights under Utah Code 57-1-32.

Conversely, when a homeowner diligently works with a Lien Holder to reach agreement and is successful, the lien holder still has a whopping 6 years to file a lawsuit to act on their deficiency rights per Utah Code 78B-2-309(2). AND they have more information because the homeowner attempted a loan modification or short sale and gave a complete financial picture.

We believe this is ludicrous and harms the mortgage industry by keeping people out of the market for six years versus getting back in at the earliest possible opportunity.

We are lobbying important people and decision makers who can help balance the scales, 1) This only applies toward 1st position lien holders, 2) The lien holder will have the identical window of time as they do in a foreclosure to act on their deficiency rights if that action is warranted, 3) This is more than fair since the lien holder has more information in a short sale transaction than they would in a foreclosure proceeding, and 4) Contrary to popular opinion this will not cause mortgage lenders to penalize future borrowers with a "Sin Rate" or 1/8- 1/4 higher rate. We already are penalized for being a leader in Fraud per capita.