SALT LAKE CITY — A Utah attorney has filed a proposed class action lawsuit against Bank of America and its subsidiaries for allegedly executing tens of thousands of illegal foreclosures statewide.
Filed last month in Salt Lake City's 3rd District Court, the lawsuit was brought on behalf of three Utah couples who lost their homes in Mapleton, Park City and Salt Lake City to foreclosure in May and June.
The lawsuit contends the companies have failed to operate within Utah foreclosure laws dating back to 2001, including amendments enacted in May 2011 that protect consumers by requiring banks to provide written notice when a foreclosure sale is going forward.
The lawsuit seeks a jury trial and an injunction against Bank of America and its companies to block further evictions and foreclosures while a trial is pending.
The case has been assigned to 3rd District Judge Andrew Stone. No hearing dates are set, although a motion was filed on Monday asking Stone to certify the case as a class action lawsuit.
In court papers, attorney Marcus Mumford, who represents the Utah couples, said about 750 foreclosures sales involving Bank of America and its subsidiaries are pending.
Also named as defendants in the lawsuit are ReconTrust, BAC Home Loans Servicing and the Utah law firm of Matheson, Mortensen, Olsen & Jeppson.
Southern California-based Bank of America spokeswoman Jumana Bauwens declined comment on the lawsuit on Friday.
Stuart Matheson, a principal in the Utah law firm, said he had not yet had a chance to read the lawsuit, but "would certainly deny any kind of illegal or improper foreclosure activity."
Utah has some of the country's highest foreclosure rates.
Utah law allows for non-judicial foreclosures, meaning that homes can be seized and sold by a trustee without a court proceeding. The law is supposed to guarantee homeowners have access to the trustee, information and documentation so that the process is fair, Mumford said on Friday.
The lawsuit contends, however, that by using ReconTrust as its trustee, Bank of America is purposely circumventing Utah law. ReconTrust doesn't have a physical presence in Utah and does not meet the requirements of the state's trustee laws, Mumford said.
The lawsuit also alleges that documents and information, including the true ownership of loans is deliberately hidden from homeowners.