I need to foreclose on some lots I purchased in Utah. I just have one problem!

I recently executed a promissory note to an investment group in the state of Utah, in which they purchased 120 lots in a subdivision. About a year later they stopped paying me and now they won’t answer any of my phone calls. The custodial company sent me a letter informing me of the situation, asking me if I want to try to collect my money or take back the lots. I’m assuming that if I take back the lots I can just sell them at my discression which wouldn’t be a problem seeing that the lots are worth about 1000% more than what I have invested. The problem is that the subdivision is in litigation because, from my only understanding, the bank filed bankruptcy, which is still a pretty vague area, and I’m not really sure what’s going on. The question I want to ask is, can I still take back the lots while they are in litigation, and can I sell them while all this is still going on? I also noticed that the lots were recorded under an llc that I’ve never even heard of. Does my promissory note superceed the recorded information since in the note it states that if payment isn’t made to me, I can just take back the lots? My biggest snag is the bankruptcy issue. Any input will help, and your time is greately appreciated. Thank you.


You won’t like this answer…but forget this message board, and go get yourself a real estate lawyer (in person) ASAP. I would get started on this tomorrow…and would not think twice about it. Why? Information you get “online” is not always 100% accurate to you and your unique situation. It sounds like you might have a lot of money on the line, and you need 100% accurate information on what to do next.

You need a licensed real estate lawyer to PERSONALLY get all the details from you, review your promissory note and other legal documentation, take time to do legal research, and etc. You can’t do that online.

And if this involves property that is valued at over $500k or more (sounds like it is) - I would even consider hiring a large law firm to review this. It won’t be cheap, no, but I have dealt with larger law firms (one in particular) on many occasions, and having the power of specialized lawyers at your fingertips (bankruptcy attorneys, real estate attorneys, whomever) and all in the same locale can be very valuable for the attorney and you.

I hope that helps!

And good luck!

I hope you get all the properties back, and can sell them for a profit.


Once you get all the legalities worked out, send me a PM as I would be interested in looking at the property!


Thanks guys,

I’m actually waiting to here back from the attorney who is dealing with the bk. Thanks for the input.

The bankruptcy attorney is not your attorney. You may have legal issues outside of the borrower’s bankruptcy. Depending upon the priority of your lien, your lien could be extinguished by the bankruptcy.

You need your own attorney, someone who only represents your interests.

Got it!

Thanks Dave T