Right now, thanks to a temporary legal battle there won’t be any Bank of American Foreclosures in Utah for a little while. Bank of America probably has more properties in default than any other Utah lender. This is in large part due to their acquisition of Countrywide, which was one of the biggest lenders and issued a very high percentage of risky and subprime loans. Here is some of the information on this story from KSL.com
Bank of America has halted nearly 1,000 foreclosure sales in Utah because of a court-ordered preliminary injunction. The ruling came as the result of a lawsuit filed by a Utah woman.
According to the Deseret News, attorney John Christian Barlow filed a case in behalf of Peni Cox, who had stopped paying her mortgage in January 2009.
Barlow and Cox had foreclosure proceedings stopped just before the property was turned over to the Bank of America.
The lawsuit alleges the bank has no right to pursue foreclosures in Utah because they aren’t registered with the Utah Division of Corporations and don’t have face-to-face meeting space in Utah.
Bank of America officials say it is not required to register with state offices.
Personally, I think this is pretty ridiculous. While Bank of America really should make themselves more available, and should be more efficient to approve short sales and try to prevent foreclosures, the legal system shouldn’t be giving free rent to default borrowers who haven’t made payments in more than a year.