Federal Judge Dissolves Foreclosure Injunction Against Bank of America Corp (NYSE: BAC)

U.S. Federal District Court Judge Craig Waddoups has dissolved a preliminary injunction Bank of America Corp (NYSE: BAC) and its subsidiary ReconTrust, allowing the bank to continue foreclosure proceedings on hundreds of homeowners with delinquent mortgages in the state.

The decision was handed down after a Thursday hearing when Bank of America Corp (NYSE: BAC)’s attorneys argued against attorney J. Christian Barlow, who said that the two companies were not properly registered in Utah and should not be able to force foreclosure proceedings.

Barlow and his client received a preliminary injunction from Utah’s 5th District Court Judge James Shumate on May 22. Although the preliminary injunction was statewide, Waddoups ruled that Cox did not have have standing to argue on behalf of other Utah property holders.

The one page ruling did not provide a specific reason for the dissolution.

A statement from Bank of America Corp (NYSE: BAC) said “It is Bank of America and its related affiliates’ policy to handle foreclosures in compliance with applicable laws, and by its ruling today, the court has recognized that fact.”

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