Utah Judge James L. Shumante has issued a court order to cease all foreclosure proceedings by Bank of America, ReconTrust Company, Bank of America Corporation and Home Loans Servicing LP. The lawsuit, filed by John Christian Barlow of St. George, Utah-based Envision Law Firm, claims that Bank of America is not in compliance with Utah Code 57-1-21(1)(a)(i) because Bank of America does not have offices in the state of Utah, therefore preventing borrowers from meeting face-to-face with their lenders to come to foreclosure resolutions.
"The defendant is not registered with the Utah Division of Corporations, and therefore, may not transact business in the state of Utah," said Judge Shumante.
Judge Shumante issued a preliminary injunction order without a hearing, whereby all Bank of America foreclosures in the midst of the foreclosure process were halted. The judge's decision impacts 1,100-plus Utah Bank of America borrowers and homeowners who are currently in the foreclosure process.
A federal judge is scheduled to render a decision today, June 10, on whether or not Bank of America can continue its foreclosure processes.
