Category — Arizona Anti Deficiency Law – SB 1271

The repeal of SB 1271 is exciting news for most of us and the changes originally proposed to Arizona’s Anti-deficiency law were never in the best interest of Arizona homeowners. However there are still some people negatively affected by Az Anti-Deficiency statutes.

If your property is on over 2.5 acres or more then you are not protected by the Arizona anti-deficiency law.

If your property is a tri-plex, quad-plex, or other property designed to hold more than 2 families then you are also not covered.

Most commercial property is not covered under this law.

If your property is on over 2.5 acres of land, is designed for more than 2 families, or falls in the “commercial” category then it is highly recommended that you contact an attorney before foreclosing or doing a short sale. A little work now should save you a lot in the long run.

I have some excellent references for local legal counsel, tax attorneys, CPA’s, credit repair, and of course Az short sale information.

Call me at (480) 241-4406 if you’d like some good people to contact regarding your situation or if you have any short sale questions I’d be happy to answer them for you.

Short Sale closings are increasing as banks become more lenient and realize that approving a short sale is better than taking the hit with a foreclosure.

Az short sale stats are as follows:

1st Quarter 2009 – 1,585 Arizona Short Sales Closed
2nd Quarter 2009 – 2,890 Arizona Short Sales Closed
3rd Quarter 2009 – 3,172 Arizona short sales closed as of 9/12/2009 and we still have 18 more days left in the quarter!

As you can see, numbers have increased tremendously. This is fantastic news for those of you who are upside down in your home as your chances of getting your short sale approved have increased dramatically.

With the repeal of SB 1271 now even investors have the opportunity to short sell their Arizona homes before any new anti-deficiency legislature takes place.

The more properties that we can short sell and keep from foreclosure the quicker we’ll see an Arizona real estate market recovery and soon be back on our way to appreciating values in a stable marketplace.

For more Az Short Sale information visit our website at http://www.AzHomeHelp.com or give us a call 7 days a week from 8am – 8pm at (480) 241-4406.

A portion of SB 1271 Arizona’s change to the anti-deficiency statute was an intent to try and help local community banks ease the burden of money lost on defaulted mortgages.

As anyone reading this blog surely knows, I have been a huge opponent of SB 1271 from the start and am the first one to jump up and celebrate it’s repeal!  That being said, I can also sympathize a little (tiny, minute, just a lil’ bit)  from a banking standpoint although I limit that sympathy to the local Arizona banks and not the large conglomerates — and we all know which ones they are!

If you don’t then you are also unaware that local community banks were not eligible to receive TARP funds which furthers the difficulty they are having to stay afloat in todays turbulent real estate marketplace.

The sad thing is that local community banking which thrives as a local business and from local business was denied TARP fund money and instead this money was allocated to the larger banking institutions who did what with it??  Instead of helping homeowners they used it to purchase more banks!!!!!

Wait a minute — so I’m saying that instead of our tax money going to actually HELP homeowners this government bailout went to help the large banking industry instead and left our local community banks hung out to dry???

Basically, Yes.

This is government spending at it’s worse and to further explain, here’s an example everyone can understand.

It’s like taking your tax money and giving it to Wal-Mart to build more large shopping centers in small towns, thereby wiping out smaller local businesses and mom & pop shops.

Sure, most of us like the convenience and low pricing Wal-Mart brings but wasn’t this country founded on supporting thy neighbor?   If we support the large companies coming in and taking over then we aren’t really supporting our neighbors’ friendly businesses and forget about personal service!

This is about the best example I can think of — instead of using our money to help out the local bank on the corner the money instead went to larger banking institutions for them to further their take over of America.

Some “bailout”!

My point is this – stop by your local community bank and open up an account.  Chances are you’ll find the bank President there every day, accessible and happy to see you come in.   He/She may even come out to greet you, may remember your name, and will probably ask you about your family.

These are the kind of banks we all should be using moving forward.  These banks want your business and will still go the extra mile to earn it.  Support them and their endeavors by opening accounts and obtaining loans from them.  You’ll get better service, great rates, and you’ll be supporting your community.

Let’s bring America bank to it’s grassroots and remember what it was like before corporations took over everything.  Maybe the goverment will take notice and start pumping our tax dollars back into our neighborhoods and local businesses where we are greeted with a smile and everyone knows our names.

SB 1271 has been repealed!!

Today, Sept. 4 2009 at 1:20pm Governor Brewer signed HB 2008 which repeals SB 1271 and it’s changes to the Arizona anti-deficiency statute.

The anti-deficiency statute will (for now) remain in favor of Arizona homeowners!  If you own property in the state of Arizona and it’s on less than 2.5 acres and is a single family dwelling or a duplex then your lender is unable to pursue you for any deficiency for purchase money mortgages!!

YES, THIS MEANS RESIDENTIAL INVESTMENT PROPERTY AS WELL!!!!!!!!!!!!!!!!

What does this mean to me?  Lots!!

1.  Arizona Short sale approvals should start flying!!!  I expect less resistance from the lenders in approving Az short sale deals as there is no incentive for the banks to foreclose on the property and it makes much more sense to approve the short sale.

2.  If you own investment property in Arizona then you can now safely short sell your investment and the lenders will not as actively pursue the foreclosure route.

3.  Postponements of foreclosures for short sale clients will be easier.  Although we can usually postpone foreclosure dates anyways the closer to the date it is the more difficult it can be.  Now I wouldn’t be surprised if a few lenders start calling ME asking if they can postpone it so we can get the short sale through instead!

4.  Lots and lots of happy people!!!  I’ve been fielding calls and emails all day from people who are absolutely ELATED about this news!!  Care to share some joy with someone who understands and knows what the heck you’re smiling and carrying on about??  Feel free to give me a call or send me an email – I feel like we’ve won the lottery!!!!!!

Thanks again to everyone for your support and help.  I’ve been sending your emails and letters “up the ladder” and I don’t know if it’s one of those letters that worked or not but I’d like to think that all of us had a little hand in helping change Arizona for the better!!

I’ll be posting more updates on our Arizona Short Sale site at http://www.AzHomeHelp.com as well as here on the blog so feel free to keep checking in.  I’m sure this isn’t the last we’ve heard from the banking industry and I’ll keep everyone up-to-date on what their plans are as well.

Thanks!
Sean

SB 1271 has been repealed!!!

The Governor has signed HB 2008 which repeals the anti deficiency law!!

Thank you to everyone for your letters and emails!  Together we did it!

Ill post more later…im going to celebrate!