Monday, June 14, 2010

Utah judge stays all foreclosure actions brought by Bank of America in Utah

By:  Kate Cavallaro

A Utah judge has ordered a preliminary injunction against all foreclosure sales in the State of Utah by Bank of America Corporation. The temporary injunction was granted based on claims that the bank is not properly registered to do business in the state. The order bars Bank of America and its subsidiaries, like Recon Trust, from engaging in foreclosure sales in Utah until it is determined if the institutions are legally registered with the Utah Division of Corporations. Bank of America has filed to have the injunction rescinded. An emergency motion has been filed in Federal court. A Bank of America spokesperson has said that since the companies are governed by federal law, not state law, the defendants in this action had no opportunity to make their argument before the Utah state order was issued. Bank of America has halted residential foreclosure sales in the Utah State in order to comply with the injunction. A local newspaper reported that the Utah Department of Commerce Corporation division has no record of Recon Trust being registered as a business entity in Utah.

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