I’ve been receiving quite a lot of calls lately from investors trying to beat the SB 1271 Anti-deficiency law and they have a good plan.
Assuming that Governor Brewer signs HB 2008 in the next few days this will repeal SB 1271 and the September 30 deadline will be no more.
However the talk is that even if the law is repealed that the Senate will hold a session in January to discuss the anti-deficiency law again and chances are that this one will fly. We’ll be on hand to make sure that it’s more in favor of Arizona homeowners but with push comes pull so I’m sure the banking industry will get a few perks as well.
So, in order to take advantage of this here’s what my savvy investor clients are doing. We are listing investment properties (or even properties that may fall under the ambiguity of SB 1271 such as those that you may have lived in at one time but now rent) and trying to get them sold as soon as possible. The sooner we can get them listed and contracts on them the sooner we can be into the bank negotiating the deal. With an average close time of 70-90 days from contract that puts us with closings near the end of the year
(November/December) and into early January as well which should be well before any new anti-deficiency law is set to take place.
This should clear quite a lot of properties off the books and help a lot of people from having to even worry about what anti-deficiency law they try to pass.
If you are an local investor, second-home owner, out-of-state investor, or just upside down in your property and you want to short sell your home please call us now at (480) 241-4406 or complete one of our contact forms on our Arizona Short Sale website at http://www.AzHomeHelp.com and we’ll help get your property listed and sold as quickly as possible!
September 3, 2009 No Comments
Federal Deficiency Law to trump Arizona Anti-Deficiency law?
by Sean Bonini
I received an interesting email today from an Arizona resident asking about a rumor he had heard regarding a new federal law that may go into effect that would essentially void all state laws and allow banks to pursue deficiencies against homeowners who are foreclosed upon or who do short sales.
Personally I had never heard of such a thing and decided to do a little more research on the subject.
Obviously such a law would be disastrous to the national economy as the only people benefitting from such a law would be banking institutions and bankruptcy attorneys!
One of the biggest issues with anti deficiency laws such as SB 1271 which is the law currently being passed in Arizona allowing lenders to pursue deficiencies is the fact that many homeowners were not aware of any deficiency statute at the time of loan origination.In other words, when you bought theproperty there was no deficiency law in place! This is true here in Arizona as the new anti-deficiency law is set to go into effect Sept 30, 2009 and will be retroactive to all loans made previously!
That’s like your opponent changing the rules of the game after they get ahead! Not fair, not very constitutional, and not very pleasant!
In researching this rumor I have so far found it to be untrue. I consulted most of my sources including real estate attorneys & lobbyists from both sides (it’s good to know what the banking institutions are thinking!!) Noone has any information regarding such a law and to be honest it would probably be very difficult to get such a law passed. Not to mention all the negative impact it would have on our new president’s campaign!
The Arizona law SB 1271 is still in effect unless repealed by Governor Brewer in the next few days (if she’s willing to sign house bill HB 2008 into effect which in essence repeals SB 1271) but nationwide there does not seem to be any federal law allowing lending institutions to pursue homeowners for any deficiency.
For more information on
Arizona short sale laws and foreclosure information visit our
Az Short Sale website at http://www.AzHomeHelp.com or give me a call at (480) 241-4406 and I’m happy to discuss it with you.
