Bombshell-Judge Orders Injunction Stopping ALL Foreclosure Proceedings by BOA &

[Large Sarge]

Bombshell - Judge Orders Injunction Stopping ALL Foreclosure Proceedings by Bank of America; Recontrust; Home Loan Servicing et al


Foreclosure Fraud | June 6, 2010 at 8:03 AM | Tags: b of a, bank of america, boa, Home Loans Servicing, injunction, Judge James L. Shumate, Recontrust, Utah | Categories: Foreclosure Fraud | URL: http://wp.me/pFWnq-1vU

(St. George, UT) June 5, 2010 – A court order issued by Fifth District Court Judge James L. Shumate May 22, 2010 in St. George, Utah has stopped all foreclosure proceedings in the State of Utah by Bank of America Corporation, ; Recontrust Company, N.A; Home Loans Servicing, LP; Bank of America, FSB; www.envisionlawfirm.com. The Court Order if allowed to become permanent will force Bank of America and other mortgage companies with home loans in Utah to adhere to the Utah laws requiring lenders to register in the state and have offices where home owners can negotiate face-to-face with their lenders as the state lawmakers intended (Utah Code ' 57-1-21(1)(a)(i).). Telephone calls by KCSG News for comment to the law office of Bank of America counsel Sean D. Muntz and attorney Amir Shlesinger of Reed Smith, LLP, Los Angeles, CA and Richard Ensor, Esq. of Vantus Law Group, Salt Lake City, UT were not returned.

The lawsuit filed by John Christian Barlow, a former Weber State University student who graduated from Loyola University of Chicago and receive his law degree from one of the most distinguished private a law colleges in the nation, Willamette University founded in 1883 at Salem, Oregon has drawn the ire of the high brow B of A attorney and those on the case in the law firm of Reed Smith, LLP, the 15th largest law firm in the world.

Barlow said Bank of America claims because it’s a national chartered institution, state laws are trumped, or not applicable to the bank. That was before the case was brought before Judge Shumate who read the petition, supporting case history and the state statute asking for an injunctive relief hearing filed by Barlow. The Judge felt so strong about the case before him, he issued the preliminary injunction order without a hearing, halting the foreclosure process. The attorney’s for Bank of America promptly filed to move the case to federal court to avoid having to deal with the Judge who is not unaccustomed to high profile cases and has a history of watching out for the “little people” and citizen’s rights.

The legal gamesmanship has begun with the case moved to federal court and Barlow’s motion filed to remand the case to Fifth District Court. Barlow said is only seems fair the Bank be required to play by the rules that every mortgage lender in Utah is required to adhere; Barlow said, “can you imagine the audacity of the Bank of America and other big mortgage lenders that took billions in bailout funds to help resolve the mortgage mess and the financial institutions now are profiting by kicking people out of them homes without due process under the law of the State of Utah.

Barlow said he believes his client’s rights to remedies were taken away from her by faceless lenders who continue to overwhelm home owners and the judicial system with motions and petitions as remedies instead of actually making a good-faith effort in face-to-face negotiations to help homeowners. "The law is clear in Utah," said Barlow, "and Judge Shumate saw it clearly too. Mortgage lender are required by law to be registered and have offices in the State of Utah to do business, that is unless you’re the Bank of America or one of their subsidiary company’s who are above the law in Utah."

Barlow said the Bank of America attorneys are working overtime filing motions to overwhelm him and the court. “They simply have no answer for violating the state statutes and they don't want to incur the wrath of Judge Shumate because of the serious ramifications his finding could have on lenders in Utah and across the nation where Bank of America and other financial institutions, under the guise of a mortgage lender have trampled the rights of citizens,” he said.
"Bank of America took over the bankrupt Countrywide Home Loan portfolio June 3, 2009 in a stock deal that has over 1100 home owners in foreclosure in Utah this month alone, and the numbers keep growing," Barlow said.

The second part of the motion, Barlow filed, claims that neither the lender, nor MERS*, nor Bank of America, nor any other Defendant, has any remaining interest in the mortgage Promissory Note. The note has been bundled with other notes and sold as mortgage-backed securities or otherwise assigned and split from the Trust Deed. When the note is split from the trust deed, “the note becomes, as a practical matter, unsecured.”
Restatement (Third) of Property (Mortgages) § 5.4 cmt. a (1997).

A person or entity only holding the trust deed suffers no default because only the Note holder is entitled to payment. Basically, “[t]he security is worthless in the hands of anyone except a person who has the right to enforce the obligation; it cannot be foreclosed or otherwise enforced.” Real Estate Finance Law (Fourth) § 5.27 (2002

[dysgenic]

YEAH! At least there is one judge out there that is not in bed w/ the banks.

[TPTB]

Yeah, I hope this catches like a freaking wild fire.

[Ash_Williams]

Yeah, I hope this catches like a freaking wild fire.

Then what? BOA Foreclosures are delayed, new BOA mortgages aren't issued in the state, all while values fall even further? Seems like a no-win. If values continue to fall then the faster they foreclose the better it is for the home"owner".

These guys are going to be grateful for the delay because they think things could turn around but really they'll just end up on the hook for more money in the end.

[Awoke]

They won't take this lightly.



* Awaiting the announcement of Barlows "Car accident" *

[Libertytree]

When this happens in all 50 republics, then that will be a day to remember.

[tekrunner]

When the Soviet Union collapsed everyone in their state provided dwellings became home owners over night. I'd love to see the American people simply foreclose on BofA. It could be something like the Oklahoma land run

[Ash_Williams]

When the Soviet Union collapsed everyone in their state provided dwellings became home owners over night. I'd love to see the American people simply foreclose on BofA. It could be something like the Oklahoma land run

The problem is you can't simply take from the bank and expect everything to be unchanged otherwise. If the mortgages were written off entirely a few more people would own homes (these people are laid off anyway and the property tax and utilities will catch up soon enough) and the bank would be in serious shit. That could only end a few ways:
1. Gov bails them out (ie we all pay to give people houses they shouldn't have tried to buy in the first place.
2. Gov doesn't bail them out, bank goes under, takes other banks with it, takes stock markets with it, FDIC on the hook for the first 250k of each account (i.e. again we all pay again so people can have free houses.)

The bank is incapable of producing anything, it just moves money around. If people are getting free houses, it means other people are paying for it.

[General of Darkness]

This can't be legal.

[Silver Shield]

Ask Blago what happens when you move against B of A...

[tekrunner]

LOL, I remember that incident like it was yesterday. TV was on in the background and I heard something about some Illinois politician saying there would be no more business between his state and BofA. I thought to myself, "wow, he won't be in power long". The next day it all hit the fan for him.

[Quantum]

If people are getting free houses, it means other people are paying for it.


Who?

The carpenters were paid, the plumbers were paid, the electricians were paid...even the realtors got paid.

The only ones who don't get paid are the stupid f*cks who "invested" in the criminal enterprises called banks. Too bad...no one should profit from a known scam.

[Ash_Williams]

The only ones who don't get paid are the stupid f*cks who "invested" in the criminal enterprises called banks. Too bad...no one should profit from a known scam.

I sell you a house for 500k. You don't have the cash so you take out a mortgage. 500k goes in my bank account. You don't make any payments. My bank is shut down that morning by the FDIC. Then I've paid 250k towards your house and the FDIC (taxpayers) paid another 250k.

This is assuming you never pay. I don't know Utah law but you'd probably be on the hook for the difference of what you owe vs what the bank sells the place for. "Everyone" is only on the hook when you declare bankruptcy. If you do need to make up the difference, then the delay in foreclosure only makes it worse for you and the bank (unless you think house prices will rise.)

[Cebu_4_2]

The banksters never had any money to loan, banks are not legally able to loan any deposited money so whats the loan all about? Time for you to read up on this.

[Libertytree]

Exactly Ceb!, money is a farce, it never existed, there can be no claim to what never existed.

[Quantum]

The only ones who don't get paid are the stupid f*cks who "invested" in the criminal enterprises called banks. Too bad...no one should profit from a known scam.

I sell you a house for 500k. You don't have the cash so you take out a mortgage. 500k goes in my bank account. You don't make any payments. My bank is shut down that morning by the FDIC. Then I've paid 250k towards your house and the FDIC (taxpayers) paid another 250k.


A nonsense scenario which did not happen.




This is assuming you never pay. I don't know Utah law but you'd probably be on the hook for the difference of what you owe vs what the bank sells the place for. "Everyone" is only on the hook when you declare bankruptcy. If you do need to make up the difference, then the delay in foreclosure only makes it worse for you and the bank (unless you think house prices will rise.)


"Everyone" is not on the hook with bankruptcy...only the banks and their accomplice "investors." Deficiency only occurs in some states, and then there's that "blood from a turnip" thing...again, the banks and their accomplices.

[Slimer]

Ask Blago what happens when you move against B of A...


Amazing how soon the feds came after him after his B of A threat...

[Ash_Williams]

The banksters never had any money to loan, banks are not legally able to loan any deposited money so whats the loan all about? Time for you to read up on this.

The loan is based on a person's promise to get that money from somewhere. That's where the money comes from - someone promises they'll come up with it and their bank considers that an asset which to balance off the amount they'll pay to the seller's bank.

"Buy me a case of beer Cebu, I'll give you the $20 after plus $2 for your trouble." You go to the beer store and write a check for $20 - you have no money in your account but you figure I'll give you $22 before they cash the check (you made $20 "out of thin air" as they say). Now I take the beer and don't give you the $22. I justify it by saying you never had any money to begin with so it's all a scam and you were trying to victimize me for $22 profit then feel all smug and enjoy a couple beers.


"Everyone" is not on the hook with bankruptcy...only the banks and their accomplice "investors." Deficiency only occurs in some states, and then there's that "blood from a turnip" thing...again, the banks and their accomplices.

That would almost be true if the gov didn't have a habit of bailing out out the banks. They do. If the bankruptcies harm a big bank, the gov will be there to make it all better. When banks fail, anyone with over $250k in an account loses, and FDIC fees go up which directly affects everyone with an account. You can't just take money from a bank as if it were a person with cash in their mattress. It's a business and more money out means more money in, bankruptcies will be passed onto the customers (and every business is a customer, and their increased costs get passed onto us.)

[Horn]

Yeah, I hope this catches like a freaking wild fire.


Yes, maybe the people of the states will be able to save their homes by gaining money building empty bank buildings in their neighborhood. 8)