Friday, January 28, 2011

Bank of America not happy: judge blocks 8,900 NV foreclosures

Bet this news didn't go down too well with the execs at BofA. With all the gnashing of teeth about robosigning and foreclosure fraud in the news, this recent story is important. From WaPo:

Bank of America is aggressively moving to appeal a Nevada county judge's order halting more than 8,900 foreclosures.
In one of a growing number of foreclosure cases across the country in which judges are questioning whether notices and documents were improperly prepared, Nye County District Court Judge Robert Lane issued a preliminary injunction against BofA's ReconTrust subsidiary, blocking it from proceeding with non-judicial foreclosures statewide until a Feb. 28 hearing.
The case involves a borrower, Suzanne A. North, who sued the bank on Jan. 11 arguing that ReconTrust filed foreclosure papers when it did not have the legal standing to do so.
Goodness, gracious! Since BofA bought CountryWide Financial, one of the nations most crooked mortgage companies, I am sure there are plenty of phony loans and phony foreclosures in the mix. Suzanne North uses the word FRAUD in her filing and brotha..I wouldn't doubt you? From the VegasSun writeup on this bizarro world of fuckery in foreclosure:

While North complained that ReconTrust filed foreclosure papers at a time when it was not the trustee, Bank of America said in Thursday's filing that ReconTrust -- a B of A subsidiary -- was acting as its agent and that procedure has been found in other cases to be proper.
"ReconTrust ... filed the notice of default not as the trustee, but rather as the agent for the beneficiary (Bank of America), pursuant to," Nevada law, the bank's filing said.
"Courts have repeatedly rejected challenges to a notice of default on the grounds that a party was substituted as trustee after it issued the notice of default when the party substituted as trustee filed the notice of default as an agent of the beneficiary, not as the trustee," the filing said.
Bank of America also disputed claims by North that ReconTrust must be licensed in Pahrump and with the state of Nevada to execute foreclosures, saying that as a national bank it's exempted from such licensing rules.
In seeking to overturn Lane's order, the bank argued:
"The cost associated with delaying one foreclosure is severe, but when multiplied by the thousands of foreclosures in Nevada that cost is enormous. In addition, (the Bank of America) defendants have contractual obligations to investors and other obligations to regulators to conduct foreclosure proceedings," the bank's filing said.
"The harm caused to the public interest is overwhelming. Treasury Secretary Tim Geithner opined that ceasing the foreclosure process is `very damaging' and harms the public as communities are forced to live longer with empty homes, there is increased downward pressure on home prices and increasing blight," the bank argued. "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."
Bank of America and its subsidiaries are represented in the litigation by Las Vegas attorney Ariel Stern of the law firm Akerman Senterfitt LLP.
It's unclear when the federal court may rule on its motion.
Timmy Geithner can kiss my brown ass. He loves The Corporatocracy and Wallstreet and supports their every whim, regardless of how and who it affects on Mainstreet. Piss off Timmy. Also, for BofA to toss in how this affects their investors when their own investors have recently sued them..well, I find that ironic as hell.


  1. And right there is the tension that shows how badly we are served as a society by the banking industry. They fight tooth and nail, with the government standing with them, to make sure that home prices are so steep that normal families just can't afford to purchase a home, due to the greed and arrogance of the establishment. They want us to all be in debt to them in order to continue the status quo, an impossible situation. And untangling ourselves from the incredibly entrenched interests of the powerful and rich will cost all of us in painful and long-lasting ways.

  2. Did you hear about the Fed audit revealing $14 trillion in secret bailouts?