Bank of American/Recon Trust

From Housing Wire

A Nevada county court placed an injunction against a foreclosure by Bank of America (BAC: 13.67 0.00%) and its default management subsidiary ReconTrust on Jan. 20.




Robert Lane, a judge in the Nye County District Court, delivered the ruling, citing the "substantial likelihood" that plaintiff and homeowner, Suzzane North, would establish at trial that ReconTrust could not prove it has a contractual relationship between the plaintiff and BofA regarding the promissory note and deed of trust.



Lane ruled "to prevent the irreparable injury to the Plaintiff that would result from the unlawful nonjudicial foreclosure being carried out by Defendant ReconTrust Company against the Plaintiff, and to allow the court to render effective relief if the Plaintiff prevails at trial."



A clerk at the court told HousingWire that the case has been taken to federal court, which BofA confirmed.



Similar lawsuits against BofA and ReconTrust sprang up in Utah in the summer of 2010, but U.S. District Court Judge Clark Waddoups dissolved an injunction against the bank on June 11.



"It is Bank of America and its related affiliates' policy to handle foreclosures in compliance with applicable laws, and we believe that the court will recognize that fact," a spokesperson for BofA told HousingWire. "Bank of America will work quickly to resolve the situation. Until then, ReconTrust intends to comply with the order."





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