Wednesday, February 15, 2012

Utah Foreclosures By BofA-Controlled Confederate To Be Governed By Texas State Law: Federal Trial Judge; State AG Seeks To Intervene

In Salt Lake City, Utah, The Salt Lake Tribune reports:

  • A federal judge has ruled that Texas laws, and not those of Utah, govern foreclosures by a unit of Bank of America. The ruling by U.S. District Judge Ted Stewart is the second to go that way in federal courts in this state, and the Utah Attorney General’s Office is asking to intervene to protect Utah’s ability to set its own laws regarding foreclosures.

  • Stewart handed down the decision this week in dismissing a proposed class-action lawsuit against BofA and its foreclosure arm, ReconTrust, as well as an attorney who performs the foreclosures in Utah for the bank. Stewart adopted the reasoning of Judge David Sam, who reached the same conclusion in a ruling handed down in December.

  • But Deputy Utah Attorney General John Swallow said his office intends to defend the state law that says only Utah attorneys and title companies with offices in the state can act as a trustee and foreclose on property.

  • Stewart held that ReconTrust performs its duties related to foreclosures in Texas, where it is headquartered. That means that under the National Bank Act that state’s laws govern foreclosures in Utah, the judge wrote.

  • "Foreclosures are personal, and foreclosure laws should be set by the state where the foreclosure is actually done," Swallow said. "We jealously guard our right to dictate how foreclosures work in Utah. I think they’re dead wrong when they try to rule otherwise."

For the story, see Federal judge: Texas law governs Utah foreclosures (State A.G. seeks to intervene in case to preserve state’s standing).

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