BELL v COUNTRYWIDE | Latest Foreclosure Ruling Sides with Utah Homeowners, BofA’s Recontrust Unit can’t Rely on Texas Law

Latest foreclosure ruling sides with Utah homeowners

Lawsuit » In split with other judges, jurist says BofA unit can’t rely on Texas law

Contrary to the findings of two other federal judges in Utah, U.S. District Judge Bruce Jenkins has ruled that Bank of America must follow state law when it forecloses on homeowners in this state.

Jenkins’ decision widens the split on the federal bench over legal questions about whether Bank of America’s ReconTrust unit has been illegally foreclosing on Utah homeowners. It also ups the stakes by declaring that a rule issued by the Comptroller of the Currency is contrary to Congress’ intent in passing laws that govern national banks.

Federal judges Ted Stewart and David Sam had previously held that under federal laws, ReconTrust could carry out foreclosures in Utah under its own name and that it is governed by the laws of Texas, where it was headquartered, and not Utah law.

Two other judges — Dee Benson and Clark Waddoups — have come to the same conclusion as Jenkins. With the split on the local bench, the 10th Circuit Court of Appeals in Denver probably will be asked to make a definitive ruling.

In a detailed and sharply worded decision, Jenkins labeled as “fantasy” arguments that ReconTrust exercises its duties in a foreclosure at its Texas headquarters and is, therefore, is governed by Texas law.

“The [default] notice is filed in Utah,” Jenkins wrote. “The sale is conducted in Utah, often on the steps of the local county courthouse. Those acts do not occur in Texas.”

Under Utah law, only a local attorney or a title insurance company can carry out foreclosures in the state, but ReconTrust had been doing so under its own name, actions that spawned numerous lawsuits.

Rest here…

Copy of the opinion below…

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4closureFraud.org

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BELL v COUNTRYWIDE

No Federal Preemption by a Trustee of a Mortgage Backed Security Trust from Senior Counsel of the Office of the Comptroller of the Currency

Comments
2 Responses to “BELL v COUNTRYWIDE | Latest Foreclosure Ruling Sides with Utah Homeowners, BofA’s Recontrust Unit can’t Rely on Texas Law”
  1. Bill says:

    I have wondered since I bought a condo in 2006 what the heck was/is up with Texas. I think it has something to do with tax law. I’d really like to hear anyone’s thoughts e.g. this.

  2. Pamela Edwards says:

    Good for Texas now maybe other states will come on board and realize they’ve been taken to the cleaners just like the rest of us.

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