ReconTrust Co., a mortgage unit of the Bank of America, has been ordered by a district judge in Nye County, Nevada, to put on hold its residential or commercial foreclosures in the state. The order came after a homeowner from Pahrump complained against the firm for allegedly issuing a foreclosure notice even before BofA appointed Recon a trustee.
The case has called attention to potential improper foreclosures in various areas of the state, including foreclosures Fallon NV and those in Nye County. According to local reports, Pahrump homeowner Suzanne North initially accused Recon of operating in Nevada without a business license. In the amended filing, North reportedly stated that the company was not yet a trustee when it issued the foreclosure notice.
ReconTrust reportedly have around 7,500 scheduled sales of properties under Nevada foreclosure listings during the time that the order from the judge was issued. The order is also expected to affect around 100 property owners in Nye County alone. According to housing market observers, if the accusations against the company were proven true, lawyers can use the argument of improper foreclosure against Recon.
This, analysts stated, can give rise to a number of lawsuits for wrongful residential and commercial foreclosures in the region. BofA reportedly stated that an almost similar order was issued against Recon in Utah and that the firm was able to prevail in its challenge against the order. The bank also stated that its unit intends to follow the court order down to the letter.
Meanwhile, North stated that she repeatedly applied for a permanent loan modification to prevent her house from becoming one of the state's foreclosure homes for sale. She alleged that she sent the necessary documents to BofA four times, but the bank allegedly lost the paperwork. North also reveals that she now owes over $16,000 on her mortgage and that this is mainly due to the failure of the bank to advise her properly.
According to housing market experts, the case of North and ReconTrust might affect future residential and commercial foreclosures legal dealings in the state. They added that other homeowners facing foreclosure troubles might be encouraged to question filings against them following the issuance of the order.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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