U.S. District Court Judge Clark Waddoups dissolved an injunction against Bank of America (BAC) Thursday and allowed the lender to resume foreclosure proceedings in Utah. The decision overrules the injunction made by 5th District Court Judge James Shumate on May 22 that stopped all Utah foreclosure sales by ReconTrust, a default management services company and subsidiary of BofA. The law offices of John Christian Barlow filed a suit on behalf of Peni Cox, a borrower in St. George, Utah, claiming that ReconTrust could not continue with the foreclosure of the home as it never registered with the Utah Department of Commerce. “The injunction was issued without Bank of America having a chance to show the court that it is authorized to do business in the state. It is Bank Of America policy to comply with applicable laws,” according to a statement from ReconTrust. Waddoups also denied a motion from Barlow to have the case transferred back to the state court. “Bank of America is pleased with the court’s ruling today. 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,” a spokesperson at BofA said. The spokesperson added that BofA has a priority to help customers stay in their homes, but foreclosure remains the only option in some cases. “When that happens, we work in compliance with the governing laws to facilitate that transition with the least amount of difficulty for the borrower and the affected community,” the spokesperson said. Barlow was not available for comment. Write to Jon Prior. The author holds no relevant investments.

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