ST. GEORGE, Utah (ABC 4 News)- A Washington County judge has stopped Bank of America foreclosures in Utah...well, temporarily. Turns out, the judge says because Bank of America doesn't have a business license to operate in the state then they shouldn't be allowed to do business here. Translation says one lawyer: if you're going to play, play fair in the State of Utah.
Attorney John Christian Barlow argued against the lending giant in the 5th district court on Friday, and got Judge James Shumate to sign off on the temporary injunction. Barlow says he started researching the Corporation when one of his clients went into foreclosure, the St. George litigator says his client tried to get the bank to agree to a shortsale but that didn't happen. Barlow believes the banking giant has too much power in these situations and isn't willing to bend, despite the millions they received in federal ball out money. The attorney, who has been practicing for less than a year, says no one has ever stood up to the lending giant and believes "in this economy there is no reason to grind on people losing their homes."
This decision effects more than 1100 homes in foreclosure, in just the month of June alone. In court documents Judge Shumate said, "The defendant...is not registered with the Utah Division of Corporations and therefore may not transact business in the State of Utah."
We contacted Bank of America they released the following statement to ABC4,
“Although we are governed by and operate in compliance with federal laws and regulations, we halted residential foreclosures in Utah in compliance with the recent preliminary injunction. Our first priority is to help our customers remain in their home as demonstrated by the more than 600,000 modifications completed since January 2008, but unfortunately due to ongoing recessionary impacts, for many customers, a transition to alternative housing will be necessary.”
On Thursday June 10th, a federal judge will decide the fate of Barlow's client and potentially the thousands of other Bank of American Mortgage Homeowners as well.
