Home / News / Foreclosure / Federal Judge Overturns Utah’s Foreclosure Injunction Against BofA
Print This Post Print This Post

Federal Judge Overturns Utah’s Foreclosure Injunction Against BofA

In a ruling handed down Friday afternoon, Judge Clark Waddoups of the U.S. District Court for the District of Utah sided with ""Bank of America"":http://www.bankofamerica.com and overturned a Utah county judge's earlier decision that barred the nation's largest mortgage servicer from carrying out foreclosure sales in the state.


Waddoups issued a court order that stated: ""The preliminary injunction of May 22, 2010 issued by the Utah state court is hereby DISSOLVED in its entirety.""

The ""temporary foreclosure injunction"":http://dsnews.comarticles/judge-orders-bofa-to-halt-all-foreclosure-sales-in-utah-2010-06-08 granted by the Utah court was based on the grounds that Bank of America and its related companies, namely its foreclosure subsidiary ""ReconTrust"":http://www.recontrustco.com, are not registered to do business in Utah.

Bank of America argued that it is governed by â€" and operates in compliance with â€" federal laws and regulations. And Waddoups agreed that the financial institution’s national charter trumps Utah law, which stipulates that mortgage lenders must be registered and have offices in the state of Utah to give struggling homeowners the opportunity to negotiate face-to-face with their lenders.

The ""ReconTrust Web site"":http://www.recontrustco.com/upcoming_counties.aspx?state=Utah currently lists 879 foreclosed Utah properties for trustee sale.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Check Also

Real Estate Investor Activity Down in Q4

Investor market shares fell relative to the previous year from February to August 2023, but increased year-over-year by the end of Q3. However, how do these numbers fit into the big picture?