A unit of Bank of America Corp. unit, named ReconTrust Co. N.A., was ordered by a Nevada judge to temporarily stop foreclosures in the state that aren’t approved by a court order.
Nevada is a State which allows both Judicial and Non-Judicial foreclosures. By far, non-judicial foreclosures are more numerous, since they are easier and quicker for the banks to complete.
In the case of North v. Bank of America Corp., CV31506, Fifth Judicial District, Nevada, Nye County Judge Robert W. Lane issued a preliminary ruling that blocks ReconTrust from conducting any more non-judicial foreclosures until he holds a hearing Feb. 28 on whether to make the ban permanent, according to a Jan. 20 order provided by the court. The injunction was sought in a Nevada homeowner’s lawsuit against Bank of America and ReconTrust.
The Judge held that “irreparable injury” that would result from the “unlawful” seizure of the plaintiff’s home by ReconTrust Co..
In non-judicial foreclosures, lenders can seize property without a court order. See our main web site for further details. Some states require a court order, others don’t, and in some, including Nevada, both are used.
In this case, the homeowner received a default notice after seeking a loan modification from Bank of America and going through a trial period. It’s interesting that she received the default notice before the bank informed her that she did not qualify for their modification program.
Bank of American apparently faced this same situation in Utah, and moved the case to Federal Court where Bank of America says they prevailed.