I came across this article today with a very thorough explanation of what the St. George judge’s order against BofA is all about.
Bank of America is definitely in violation of Utah State Code 57-1-26 which states that if requested by any person who is a party to a trust deed “the names of the original parties to the trust deed”, or in other words: who really holds the deed to the property being foreclosed on and who has the actual right to foreclose on the property. In the case of St. George resident Peni Cox, BofA has not been able to provide such document upon request, therefore being in violation of Utah law. What’s most impressive is that she discovered this loophole by herself when no one else would help her.
The second issue at had is whether or not under Utah State Code 16-10a-1501 Bank of America or any other mortgage lender without a brick and mortar presence in Utah can conduct business in Utah. The issue being that BofA is not just a mortgage lender like Countrywide that it replaced, it is a depository institution like Chase or Wells Fargo, therefore they need to have depository branches in Utah to do business here.
If this ruling is upheld it would put an end to something that has been going-on for quite a while: All those out-of-state mortgage lenders marketing your business here in Utah would have to either open locations in Utah or stop marketing and originating loans in Utah. This is not unlike many other states that require the same.
Besides, wouldn’t you rather make one of the biggest financial transactions of your life with someone you can actually shake hands with?
UPDATE UTAH FORECLOSURES – Federal vs State Rules Governing Bank of Americas Case to be Argued Before Federal Judge Clark Waddoups Thursday « Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge.
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