BofA Trustee’s Sales Halted In Utah

Written by John Clapp
on June 09, 2010 No Comments
Categories : Mortgage Servicing

ed to include comments from Bank of America) On May 22, a St. George, Utah, judge filed a [link=http://www.envisionlawfirm.com/redacted_prelim0001.pdf]preliminary injunction[/link] against Bank of America Home Loans Servicing, ReconTrust and other Bank of America affiliates preventing the companies from performing trustee's sales in the state. The court order, signed by 5th District Court Judge James L. Shumate, is the result of a [link=http://www.envisionlawfirm.com/filed_complaint0001.pdf]complaint[/link] brought forth by attorney John Christian Barlow that states ReconTrust is a Nevada corporation not registered to transact business in Utah. ‘Although we are governed by and operate in compliance with federal laws and regulations, we halted residential foreclosures in Utah in compliance with the recent preliminary injunction,’ Bank of America says in a statement. ‘Our first priority is to help our customers remain in their home as demonstrated by the more than 600,000 modifications completed since January 2008, but unfortunately due to ongoing recessionary impacts, for many customers, a transition to alternative housing will be necessary.’ Also named as defendants in the injunction order were Bank of America FSB, New Line Mortgage, a division of Republican Mortgage Home Loans LLC; and Mortgage Electronic Registration Systems Inc. The order states that ReconTrust is not registered with the Utah Division of Corporations and is, therefore, in violation of Utah Code Section 16-10a-1501. Bank of America has filed to move the case to federal court, requesting an emergency hearing to have the injunction dissolved or modified, confirms spokesperson Jumana Bauwens. ‘As national banks, ReconTrust Co. NA and Bank of America NA are governed under federal laws and regulations,’ the bank's statement says. ‘We have expressed our position for the federal preemption in the motion that [has] been filed.’ A federal judge with hear Bank of America's request for relief Thursday at

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