New Arizona Foreclosure Law - Read this if your home is headed to foreclosure
http://www.billgemmill.com/blog/articles/17/1/New-Arizona-Foreclosure-Law---Read-this-if-your-home-is-headed-to-foreclosure/Page1.html
Bill Gemmill
REALTORRealtor
By Bill Gemmill
Published on 07/27/2009
A new Arizona State law places new eligibility requirements on homeowners being foreclosed as it relates to them being responsible for the amount owed to the lender verses the amount realized by the lender in a foreclosure sale. Most owners have been protected by the current anti-deficiency law, but the new law could allow lenders to go after some foreclosed property owners to recover the difference.
New State Law could effect your wallet if your home is being foreclosed!
A "deficiency" means the difference between the total amount owed to a lender in a foreclosure (which includes the principal, interest, foreclosure expenses, and any other expenses allowed by the loan documents), and the amount the lender realizes at a foreclosure sale.
The current State Law prohibits a lender from seeking a judgement against the foreclosed property owner if the property is 2.5 acres or less and it is used as a single one family or two family home. The new law adds a few new requirements to the current law; they are that the foreclosed property owner must have "utilized" (lived in) the property for at least six consecutive months, and a certificate of occupancy must have been issued for the property. The burden of proof for these new requirements sits with the foreclosed property owner, not the lender!
This new law was signed into law on June 13th and takes effect on September 30, 2009. If you have a home that is going into foreclosure you would be well advised to contact a good real estate attorney to explore all of your options now that the law has changed.
The current State Law prohibits a lender from seeking a judgement against the foreclosed property owner if the property is 2.5 acres or less and it is used as a single one family or two family home. The new law adds a few new requirements to the current law; they are that the foreclosed property owner must have "utilized" (lived in) the property for at least six consecutive months, and a certificate of occupancy must have been issued for the property. The burden of proof for these new requirements sits with the foreclosed property owner, not the lender!
This new law was signed into law on June 13th and takes effect on September 30, 2009. If you have a home that is going into foreclosure you would be well advised to contact a good real estate attorney to explore all of your options now that the law has changed.