Banks Challenge Inter-State Foreclosure Laws

After the robo-signing scandal of 2011, several mortgage providers are still dealing with lawsuits that will determine the state of foreclosures for 2012 and beyond. One of those lawsuits involves the mortgage portion of a large national bank that is going to court in Utah. The question at hand is whether the bank is governed by Texas laws when it sells a foreclosed home in another state. Lawyers for the bank argue that since the company is headquartered in Texas, the sale should be governed by state laws. However, several properties that came under foreclosure last year in Utah are giving the bank some trouble.

As it stands, only a title company or practicing attorney in Utah can file a notice of default in the state. The bank hopes to show that under the National Bank Act, a company can foreclose on a property in any state even if the company is not headquartered there. Facing foreclosure in the state of Texas? Take immediate legal action to keep your family's home by contacting the Malaise Law Firm to enlist the services of a San Antonio bankruptcy lawyer from our team.