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Bank of America Homes for Sale Put on Hold in Utah

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By : John Cutts    99 or more times read
A preliminary injunction issued by the 5th District Court of Utah has put on temporary hold hundreds of Bank of America homes for sale in the state. The ruling was made by the state court following a case filed by lawyer John Christian Barlow in behalf of homeowner Peni Cox.

According to case documents, Cox was one of the thousands of homeowners who are facing Utah foreclosures. Documents revealed that she purchased her town house in 2007 and stopped her mortgage payments on January 2009. From then on, foreclosure rates surged in the state and prices of dwellings rose in most areas of the U.S.

Cox, along with her lawyer Barlow, was able to stop her home from becoming one of the bank owned home foreclosures in the area. Bank of America purchased the mortgage when it took over the portfolio of Countrywide Home Loan which originally held Cox's mortgage.

Following the takeover, Cox and her lawyer asserted that BoA and ReconTrust, its affiliate, should not be allowed to pursue foreclosure proceedings in the state and do not have the right to offer Bank of America homes for sale because they were not registered with the state's Division of Corporations.

Barlow argued that his client was denied her rights when lenders opted to go to courts to resolve the problem instead of collaborating with the homeowner to find a better alternative to avoid getting the property in a list of foreclosed homes for sale. Barlow further alleged that lenders are indiscriminately evicting homeowners out of their properties without following due process and regulations that are in place in Utah.

BoA and ReconTrust argued that they do not need to register since federally chartered lenders and banks are not required to do so. The bank further argued that the defendants cited in the lawsuit were not notified about the injunction aimed at stopping foreclosure proceedings against Cox. The bank has asked the courts to dissolve or modify the injunction.

While deliberation is still ongoing, almost one thousand Bank of America homes for sale are put on hold in Utah, with 700 of them under the management of ReconTrust. In total, BoA has 943 foreclosed properties waiting to be sold in Utah.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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