Daniels v. Deutsche Bank National Trust
Daniels v. Deutsche Bank National Trust, 2021 UT App 105 (Christiansen Forster, J.):
Foreclosure; Statute of Limitations
Homeowners defaulted on their home loan and subsequently discharged their obligation to pay the debt in bankruptcy proceedings. Years later, Bank attempted to foreclose on the home. Homeowners brought suit, arguing that the statute of limitations had run on the Bake’s right to foreclose, and the district court agreed, quieting title in favor of Homeowners. The court of appeals affirmed, holding:
- The statute of limitations on the right to foreclose on property is six years. In this case, the six-year period begin running on the date that Homeowners made their last payment on the debt. Although Homeowners subsequently sent various letters to the mortgagor asking to be considered for loan modification to avoid foreclosure, Homeowners never acknowledged they were obligated to repay the debt or liable for the debt and instead explicitly stated the debt had been discharged in bankruptcy.