Legal Entanglements Halting Foreclosure Sales at Utah
Legal entanglements are halting foreclosure sales of Bank of America in Utah. The court at St. George has for the time being stopped all Bank of America’s foreclosure auctions in Utah. This ruling in keeping with the laws of Utah State will impact on other lenders as well. It has been alleged that the mega lender and its connected firms had not properly registered themselves to operate business in Utah.
On 22nd May this first hand injunction against Recon Trust, a subsidiary of Bank of America and some other related companies will potentially impact on thousands of other foreclosures throughout the state.
The order running into 2 pages was ruled by Judge James L. Shumate (5th District Court) at St. George. It puts a ban on ReconTrust and some others from proceeding with sales of foreclosed units in Utah until it is determined whether the firm is registered legally with the relevant authority – Utah Division of Corporation.
The case was against Peni Cox residing in Washington County whose house had been foreclosed open. In reply to the order Bank of America has gone to the federal court to have the injunction lifted.
This dramatic order has come at a crucial time when the state is reeling under a surge of foreclosures. More than 22,000 owners of residential houses are defaulting since the middle of 2008.
The injunction was sought by lawyer J. Christian Barlow who had been representing Cox. He said if the order is made permanent then Bank of America and other such mortgage firms would have to register with the state and set up offices here so that the victims can parley with them directly. Barlow had accused Bank of America and other mega lenders for “arrogance and audacity”, even after pocketing billions as bail out money from the Federal Reserve. After having reaped profits, these banks resorted to kicking occupants from their homes without following legal rules. Barlow commented that the judge had “felt so strongly” in this case that he ordered the temporary injunction sans any hearing so as to put on hold the foreclosure process.
Speaking on behalf of Bank of America its spokesperson said that since the institutions are national in stature they are under federal law and rules. As such state statutes are not applicable to them. But the defendants did have a chance to present their views prior to the passing of the order.
I love this site because it covers the whole foreclosure market. So now we have courts halting sales and rewarding people who can’t pay their bills. Guess what, if there are no consequences these people will never pay their bills.
[...] foreclosure sales have now been automated in the two counties – making the movement swifter online. The hearing [...]