Texas law governs BofA foreclosures in Utah

“St. George attorney John Christian Barlow, who represented the Utah County homeowner, said the 10th Circuit panel “does not believe that the states have sovereign rights. The decision is severely flawed.” [Yeah, ya think?! – First thing to do is review every single judge’s financial disclosure statement]
“Barlow said Friday he intended to appeal the case to the U.S. Supreme Court.”
Good for Barlow – anything we can do to help, just let us know!

justiceleague00's avatarJustice League

A federal court in Utah held that Texas law applies in a local foreclosure case since the foreclosing banking unit is located in the Lone Star state.

According to The Salt Lake Tribune, a federal court ruledthat Texas law governs foreclosures in Utah when the process is carried out by a Texas-based unit of Bank of America (BAC).

U.S. District Judge David Sam had agreed with ReconTrust’s arguments that because its offices are in Texas when it carried out foreclosure procedures in Utah, national banking laws and regulations mean that the governing law is in the state in which its offices are located.

 

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The CLOUD: No Name, No Docs, No Terms, No Balance Due: MBS Investors Screwed and Taking Borrowers Down With Them

That’s why the government knew these were NTMs (nontraditional mortgages) but the homeowners didn’t. “Hybrid ARMs were not being offered to expand credit through lower introductory payments; they were purposely designed to be unaffordable, to force borrowers into a series of refinancings and the fat fees that went along with them.” Sheila Bair, Bull By The Horns, pg.46.