Bank of America unit, ReconTrust Co., was ordered by a Nevada judge to temporarily stop any foreclosures in the state that aren't approved by a court order.

The judge ordered the injunction during the trial stemming from a lawsuit by a Nevada home owner who faced foreclosure from ReconTrust. The ruling applies to any real estate or personal property in Nevada, preventing ReconTrust from foreclosing on any homes in the state. ReconTrust is used by Bank of America and other banks to seize homes in Nevada.

While some states require a court order for foreclosures, in Nevada they are primarily executed out of court, enabling which lenders to seize property.

The judge will hold another hearing Feb. 28 to determine whether the ban should be made permanent.

ReconTrust had faced a similar order in Utah but prevailed in challenging that order in federal court, Jumana Bauwens, a Bank of American spokeswoman, told Bloomberg News.

Nevada continually faces the highest U.S. foreclosure rate in the country; in 2010, Nevada had the highest U.S. foreclosure rate for the fourth consecutive year.

Source: BofA Unit Ordered to Halt Foreclosures in Nevada, Bloomberg (Jan. 25, 2011)