You may have heard that Recontrust was planning on ceasing operations in Washington as of last Friday.
If you have cases involving Bank of America as beneficiary, in one of its various forms, with Recontrust as Trustee, you may hear that they intend to file discontinuances of the foreclosures in those cases. I'm told that they've been advised by Commerce that the discontinuance may moot the mediation.
If so, mediators may want to suggest to them, and to borrowers, to agree to an extension of the period for the mediation for 30 days for time for the discontinuance to hit everyone's files.
I've had several extend in this situation.
Of course, the parties may take different positions in your cases or they may not agree to extend for some other reason.
I have two cases in this category and am interested in hearing about how things
are rolling out in other cases.
In one, last week I followed up with Reconstruct to see if I could prompt a
response of some kind from B of A who had been completely nonresponsive to the
Commerce Referral to Mediation and my letter with a proposed mediation date and
reminder to send in the waiver form. Reconstruct told me the trustee's sale had
been cancelled the day prior, no information as to why (upon my inquiry), and
no point of contact with B of A available.
In the other, similar pattern, I called Reconstruct today to see what is
happening, and Reconstruct advised the trustee's sale had been cancelled on
October 24 (a week ago), no idea why, and similarly no point of contact for B
of A other than their general phone number.
I haven't yet had contact with the borrowers on these files to ascertain whether
they will be disappointed if a mediation doesn't happen. I would appreciate
guidance from Commerce as to whether the discontinuance of the Trustee's Sale
is deemed to discontinue the mediation process. What if the borrower wants to
Where can I find more information about the State suit against Reconstruct?
This is the site that discusses the lawsuit again RECONTRUST and attaches the complaint. Very interesting reading!
Just to put a wrap on this, and for those who might not have seen it, here's Commerce's take on it:
As many of you are aware, there are significant changes happening with Reconveyance Trust (known as Recontrust) in the State of Washington. As a result, a number of mediators have been contacted by representatives of the beneficiary (and sometimes by the borrower) to discuss cancelation of upcoming foreclosure mediations.
The Department of Commerce understands that Recontrust may be canceling its foreclosure sales. It appears likely that the foreclosures that were originally assigned to Recontrust will be reassigned to another Trustee – and then return to the foreclosure process in the future. We do not, however, have conclusive information that this will result in the statutory process required by the Foreclosure Fairness Act starting over, beginning with the issuance of the Notice of Pre-foreclosure Options. Our position is that unless we receive such an assurance, these foreclosure mediations will not be canceled by Commerce.
Every mediation is initiated by the borrower. If the borrower wishes to withdraw from mediation when a Recontrust foreclosure is discontinued, please let all parties know & return the referral to us. If the borrower DOES NOT wish to withdraw, please keep the referral open for now. Of course, either party to the mediation may seek an agreement to postpone by contacting the mediator as well. Thank you for your consideration and cooperation in this matter.
I'd second that last thought. Mediation is about client self-determination - that's both borrowers and beneficiaries. They are entitled to their own decisions, not our preconceived notions about what we might think is in their best interests. Some may want to close the current mediation referral and wait for a later foreclosure to mediate; some may want to do it now.