Thursday, September 13, 2012
ReconTrust is not a qualified foreclosure trustee under Virginia law
ReconTrust is a wholly owned subsidiary of Bank of America, and its function is to foreclose on homes while pretending that a neutral third party and not BOA is doing the foreclosing.
As some may have heard, ReconTrust has been booted out of Washington State as a purported foreclosure trustee. Now it is time to do the same in Virginia. Virginia law imposes certain clear requirements on foreclosure trustees before such trustees can be appointed and before they can act under a deed of trust. Some of the Virginia law's requirements (including those pertaining to foreclosure trustees) can be found here. ReconTrust does not meet these requirements and instead relies on "federal preemption" because it is registered with the OCC as a national "bank." Nonetheless, federal preemption cannot and should not save ReconTrust. Rather, ReconTrust must be held accountable for disregarding Virginia law and flouting Virginia's sovereignty.
Last week, we successfully stopped a Fairfax foreclosure contemplated by ReconTrust based on ReconTrust's failure to qualify as a substitute trustee under Virginia Code.
If you are a homeowner in Virginia facing foreclosure from ReconTrust, you may well be able to bring your foreclosure to a screeching halt. Contact our office to determine if we can help you with this.