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Recon Trust, B of A’s “Unit” RECONTRUST Foreclosures Halted In Nevada by Court, Homeowner Filing

30 Jan

It’s nice to see a little good news in the fight against fraudulent practices and bad banking behaviors.

In this latest story, it’s a day-care providing mom/homeowner who is taking up the fight and just saying no to the bad acts of B of A and their “unit”, Recon Trust, from foreclosing on her home after the usual scenarios.

Interestingly, the story from the Las Vegas Review Journal reports that a similar action in Utah was overturned and the foreclosure allowed to proceed – (looks like we need better oversight in Utah).  Seems Recon Trust moved ahead as trustee and took action to file the notice of default in this case before B of A had filed the substitution of trustee documents to make recon trust the trustee… Now, we can already hear all the media and wall street supporting cynics clamoring to tell us “it’s just a minor paperwork issue! It’s not REAL! It doesn’t matter! They should be allowed to foreclose Anyway!”  Problem is, they shouldn’t. Any more than anyone in our society can take possession of something belonging to another without proper contracted engagement, agreement and due process…

It’s criminal behavior to do things without the proper authority to do them.  No matter who does them…

And until such time as the banks in this country are put to the test of having to abide by the law, it looks like we are just going to have to do this one household at a time.  So kudos to Ms. North, who filed a complaint at her Nye County Court and made the point to the world that Recon Trust was NOT the trustee and therefore could not file default notices and serve her with a foreclosure.  Oh, and by the way – the rest of her story fits to a “T” the story we have heard over and over and over in CA, AZ, NV, and a lot of other states – and it just goes on and on -

Here are the high points:

B of A loses the paperwork four times in the loan mod process.

B of A accepts lower payments for a ‘period of time’ but doesn’t advise the borrower that the difference between the reduced payments and the original payments will be being used to throw her into default…

B of A starts the foreclosure process while the homeowner is trying everything in their power to negotiate a solution/loan modification or whatever they can.

B of A moves ahead with the foreclosure process in spite of anything the borrower is doing to try to cooperate.

oh – and just for the record – B of A’s employees treat the borrower like crap and walk out of a meeting and say the game is over because she didn’t know she had to have tax documents with her at the time -

We know for a fact that a LOT of our readers will recognized these “behavior” problems – they seem epidemic in this crisis – and they are, in fact, willfully negligent and patently unfair but so long as they are not expressly illegal, they are allowed.  Consistently. Across the board.

Must be nice to be a bad mannered B of A employee who is encouraged to act out all their infantile behavior – but it might be time to start getting all these meetings on tape for the record.

Might be time to record all the conversations – and not just on the bank’s side “this conversation may be recorded” it might be that it should be a mandatory requirement in order for any bank employee to speak to a borrower; and that recording might need to be being made over at the local courthouse…  Maybe then they would remember their manners at the very least and – hey – if we’re lucky – start following the law.

Just a thought.

B of A Unit Ordered to Halt Foreclosures

By John G. Edwards
LAS VEGAS REVIEW-JOURNAL
Posted: Jan. 25, 2011 | 12:00 a.m.

A Nye County district judge has ordered ReconTrust Co., a unit of Bank of America Corp., to stop most of its foreclosures in Nevada, based on allegations made by a Pahrump woman.

The order signed by Nye County District Judge Robert Lane on Jan. 20 restrains ReconTrust from foreclosing on “any real or personal property situated in the State of Nevada.”

The bank holding company is also named in the lawsuit.

Suzanne North, who operates a children’s day care center out of her home, originally alleged that ReconTrust was operating without a state business license. In an amended complaint, she claimed that ReconTrust served her with a foreclosure notice before Bank of America appointed ReconTrust as trustee. The Las Vegas Review-Journal was unable to obtain a copy of the amended complaint.

In a statement, Bank of America said: “ReconTrust previously faced a nearly identical order in Utah, and it recently prevailed in challenging that order in federal court. Until the current situation is resolved, ReconTrust intends to comply with the order.”

ReconTrust had about 7,500 foreclosure sales scheduled in the Reno and Las Vegas metropolitan areas when the order was signed, said Sean O’Toole, founder and CEO of ForeclosureRadar.

Most foreclosures in Nevada are handled out of court, he said, unlike some states where the lender must get a court order to foreclose.

Read the Rest of the Story…

Here’s an example from the article  of the bad behavior we mentioned:

“She signed up for the state’s mortgage mediation program. She didn’t realize she needed to bring tax documents to the mediation session.

The bank representative said “we’re done,” walked out and refused to wait two weeks for a completed 2009 income tax return, she said. So she hired a paralegal to help her prepare the petition she filed with Nye County District Court.”

Nice.

Just one more thought:    Recon Trust is a wholly owned subsidiary of B of A, as is BAC, and LandSafe, the appraisal and ‘property security’ company that often comes out and changes the locks… So is there any part of the food chain of foreclosures that B of A has not created a “wholly owned subsidiary” to profit from? And do they all follow the same shoddy practices outlined in this story?

 

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  1. victim

    April 13, 2011 at 4:05 pm

    doesnt matter, they cant be stopped.

    attorneys all ‘understand’ and see the problem when they hear it.

    even with testimony and evidence ive had several tell me what a good case i have yet NONE have offered to help.

    of course with 15,000-45,000 ive been told they would be able to get involved.

    nothing can be done by a homeowner as everyone involved is on the same team