Reinstatement or payoff statement -- Timeliness of request -- Trustee's duty to provide statement -- Statement to include accounting of costs and fees.
Reinstatement or payoff statement -- Timeliness of request -- Trustee's duty to provide statement -- Statement to include accounting of costs and fees.
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(1) As used in this section:
(a) "Approved delivery method" means delivery by:
(i) certified or registered United States mail with return receipt requested; or
(ii) a nationally recognized letter or package delivery or courier service operating in the state that provides a service for:
(A) tracking the delivery of an item; or
(B) documenting:
(I) that the item was received by the intended recipient; or
(II) a refusal to accept delivery of the item.
(b) "Compensation" means anything of economic value that is paid, loaned, granted, given, donated, or transferred to a trustee for or in consideration of:
(i) services;
(ii) personal or real property; or
(iii) other thing of value.
(c) "Interested party" means a person with a right under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.
(d) "Payoff statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required to pay off a loan secured by a trust deed.
(e) "Reinstatement statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.
(2)
(a)
(i) An interested party may submit a written request to a trustee for a statement of the amount required to be paid:
(A) to reinstate an obligation secured by a trust deed; or
(B) to pay off a loan secured by a trust deed.
(ii)
(A) A request for a reinstatement statement is not timely unless the trustee receives the request at least 10 business days before expiration of the three-month period under Section 57-1-31 to reinstate an obligation.
(B) A request for a payoff statement is not timely unless the trustee receives the request at least 10 business days before the trustee's sale.
(iii) An interested party submitting a reinstatement statement or payoff statement to a trustee shall submit the statement to the trustee:
(A) at the address specified in the trust deed for notices to the trustee; or
(B) at an alternate address approved by the trustee for delivery of mail or notices.
(iv) A trustee is considered to have received a request submitted under Subsection (2)(a)(i) if:
(A) the interested party submitted the request through an approved delivery method; and
(B) documentation provided under the approved delivery method indicates that:
(I) the request was delivered to the trustee; or
(II) delivery of the request was refused.
(b)
(i) A trustee who receives a written request under Subsection (2)(a) shall provide the statement to the interested party.
(ii) A trustee is considered to have provided the statement requested under Subsection (2)(a) on the date that the trustee deposits the statement with an approved delivery method:
(A) with all delivery costs prepaid; and
(B) addressed to the interested party at the address provided in the request.
(c)
(i) If the trustee provides a requested reinstatement statement later than five business days after the request is received, the time to reinstate under Section 57-1-31 is tolled from the date of the request to the date that the trustee provides the statement.
(ii) If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff statement within five business days after the request is received, the trustee shall:
(A) cancel the trustee's sale; or
(B) postpone the trustee's sale to a date at least 10 business days after the trustee provides the statement.
(3) A trustee shall include with each statement required under Subsection (2)(a):
(a) a detailed listing of any of the following that the trustor would be required to pay to reinstate or payoff the loan:
(i) attorney fees;
(ii) trustee fees; or
(iii) any costs including:
(A) title fees;
(B) publication fees; or
(C) posting fees; and
(b) subject to Subsection (4), a disclosure of:
(i) any relationship that the trustee has with a third party that provides services related to the foreclosure of the loan; and
(ii) whether the relationship described in Subsection (3)(b)(i) is created by:
(A) an ownership interest in the third party; or
(B) contract or other agreement.
(4) Subsection (3)(b) does not require a trustee to provide a trustor:
(a) a copy of any contract or agreement described in Subsection (3)(b);
(b) specific detail as to the nature of the ownership interest described in Subsection (3)(b); or
(c) the amount of compensation the trustee receives related to the foreclosure of the loan under a relationship described in Subsection (3)(b).