Thousands of Nevada foreclosures halted by injunction
In Nevada, a judge has issued an order halting foreclosures by a Bank of America subsidiary. Approximately 8,900 foreclosures have been halted by this order. The bank is arguing against this order by citing “harm caused to the public interest.”
Problems with Nevada foreclosures
Recon Trust is a Bank of America subsidiary that operates in Nevada. In Nye County, Nevada, a judge has placed an injunction on all foreclosures through Recon Trust. On Jan. 11, a homeowner sued the bank for fraudulently trying to foreclose on her. The judge not only found merit in her case, which is currently proceeding, but issued a temporary restraining order that prevents Recon Trust from carrying out any of the 8,900 pending non-judicial foreclosures it has pending.
Why the foreclosure injunction was issued
Since the restraining order has been issued, Bank of America has filed suit to have it removed. Recon Trust has been acting as an agent for Bank of America, carrying out foreclosures on B of A’s behalf. At issue with the lawsuit and foreclosure injunction is that Recon Trust is filing foreclosure notice as a trustee, but it is actually an agent. Either way, the company cannot foreclose on any home until the issue is resolved. The order also halts all foreclosure meditations currently in progress.
Effect of the foreclosure injunction
Bank of America has filed to have the restraining order removed. The bank is claiming that “The order also harms those subject to the foreclosure process because those individuals, especially those in mediation trying to stay in their homes, are now forced into a state of limbo for an unspecified duration.” In effect, the homeowners who are being wrongly foreclosed upon have recourse — but the homeowners who are being rightly foreclosed on are getting a bad credit loan of time and money to stay in their houses longer.