Nevada State Court Halts BofA Unit's Statewide Foreclosures; Defect In Appointing Trustee May Lead To Wrongful Sale Process

In Nye County, Nevada, the Las Vegas Review Journal reports:

• A Nye County district judge has ordered ReconTrust Co., a unit of Bank of America Corp., to stop most of its foreclosures in Nevada, based on allegations made by a Pahrump woman. The order signed by Nye County District Judge Robert Lane on Jan. 20 restrains ReconTrust from foreclosing on "any real or personal property situated in the State of Nevada." The bank holding company is also named in the lawsuit.

• Suzanne North, who operates a children's day care center out of her home, originally alleged that ReconTrust was operating without a state business license. In an amended complaint, she claimed that ReconTrust served her with a foreclosure notice before Bank of America appointed ReconTrust as trustee. The Las Vegas Review-Journal was unable to obtain a copy of the amended complaint.

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• In the order, however, the judge said there is a "substantial likelihood that (North) will establish that ReconTrust does not have any contractual privities with respect to the contract between (North) and the other defendants regarding the promissory note and deed of trust." If the allegations are proven, an attorney could argue that ReconTrust improperly foreclosed on properties, Las Vegas attorney Tisha Black-Chernine said. "It could give rise to lawsuits for wrongful foreclosure," she said.

For the story, see BofA unit ordered to halt foreclosures.