A St. George judge has temporarily halted all foreclosure sales in Utah by Bank of America, based on an attorney's claim that the lending giant and related companies are not properly registered to do business in the state.
The May 22 preliminary injunction against BofA's foreclosure subsidiary ReconTrust and other companies has the potential to affect thousands of foreclosures in Utah.
The two-page order, issued by 5th District Court Judge James L. Shumate in St. George, bars ReconTrust and others from conducting trustee sales in Utah until a determination is made whether ReconTrust is legally registered with the Utah Division of Corporations.
The order was issued in connection with a foreclosure against homeowner Peni Cox of Washington County. In response, BofA has filed in federal court to have the injunction rescinded.
The order comes amid a dramatic surge in foreclosures across the state, involving more than 22,000 homeowners who have fallen behind on their mortgage payments since mid-2008. The Salt Lake Tribune
