A case out of Utah shows the state willing to serve as sole plaintiff in a lawsuit filed against a foreclosing bank even after the impacted homeowner settled.
Tom Harvey with The Salt Lake Tribune describes how homeowners who sued Bank of America (Countrywide) ended up settling with BofA and getting their loan reduced from $3 million to $1.1 million.
But the state is not dropping its own case after intervening in the suit. Utah officials are still asserting in court that the bank’s ReconTrust Co. unit illegally carried out foreclosures in the state of Utah.
The remaining litigation revolves around the issue of whether ReconTrust was in violation of state statutes when it foreclosed on dozens of homes in the state.