Mumford, West & Snow, a Salt Lake City law firm, hopes to prevent Bank of America from carrying out any more foreclosures in Utah in the near future. Last week, the law firm filed a class-action suit against BofA and subsidiary Recon Trust “for conducting thousands of unauthorized foreclosures in Utah”. Marcus R. Mumford, lead counsel, hopes to “prohibit the named defendants from conducting any additional foreclosure proceedings in violation of state law.” Mumford added that BofA and Recon Trust are “intentionally not complying with Utah law” in their foreclosure processes by failing to meet with homeowners to try to come up with an alternative to foreclosure before initiating foreclosure proceedings. According to Mumford, BofA has said that it is not required to follow Utah law. BofA spokeswoman Shirley Norton said that the company has no comment.
The Utah attorney general’s office threatened a lawsuit if BofA did not start foreclosure mediation with homeowners back in May in conjunction with many homeowner complaints that Recon Trust, which forecloses using the MERS system, was breaking Utah law. Utah law requires that a foreclosing entity be in physical possession of the deed. BofA has argued that because it is not a Utah company, it is not bound by Utah foreclosure laws.
Do you think that Utah should be able to stop BofA from foreclosing?
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