January 28, 2011: On January 20, 2011, the honorable Judge Lane of Nye County issued an order preventing Recontrust from foreclosing on all property situated in Nevada. The lawsuit underlying the injunction involved a single homeowner as the Plaintiff and Recontrust as the Defendant. Recontrust is the company that Bank of America uses to help it with foreclosing on houses.
But the injunction extends to all homes in Nevada!
Not even a week after the injunction was issued, 8920 Nevada homes have already been stopped from being foreclosed upon. The Order halted every single foreclosure sale and foreclosure mediation wherein Recontrust is involved.
With lightning speed, Recontrust snatched the lawsuit from Judge Lane’s hands in Pahrump and pitched it to Federal Judge Hunt in downtown Las Vegas.
Subsequently, Recontrust filed an “emergency motion” to overturn Judge Lane’s order, even citing the Supremacy Clause of the United States Constitution wherein Federal law trumps Pahrump law. Recontrust argues that the Pahrump Order is “shockingly expansive” and Plaintiff’s harm of losing her house is “remote and speculative” but that Recontrust’s harm is “exceptional and immediate”.
Recontrust quotes none other than the Treasure Secretary, Timothy Geithner, who opines that ceasing the foreclosure process “is very damaging and harms the public.”
For now, the injunction is enforceable and no Recontrust foreclosures are “supposed” to go forward. This won’t last for long as the Federal Court will almost certainly overturn Judge Lane’s decision. Stay tuned.