It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
new law passed by the Arizona Legislature that makes homeowners liable for tens of thousands of dollars on homes lost to foreclosure is now the focus of an intense repeal battle.
An amendment to the state's foreclosure laws, passed in the recent legislative session, was designed to protect small community banks from people buying speculative new homes they can't sell for a profit.
But the impact of the change is much larger. It makes some homeowners in foreclosure liable for the difference between their mortgage and what their lender can recoup from reselling the house. In the current
Butler said he was at a meeting last week with real-estate agents who were "shocked" the legislation passed. "Lenders that shouldn't have made the loans to investors in the first place," Butler said, "are trying to cover up their own mistakes with this new law."
"I got a call from an out-of-state lender that is considering holding off on a foreclosure until after September 30," said Phoenix real-estate attorney Marc McCain.
Originally posted by mooseinhisglory
Kick you out and make you pay for it?
Doesn't make sense. That is meeeessed up. Chalk that up as another crappy authoritarian law for AZ. I hate that place.
Originally posted by chise61
reply to post by The_Seeker
If they're gonna be forced to pay for the house through wage garnishment, etc then they should be allowed to keep the house.
That really stuffs with the rest of those people that CAN afford to buy a house.
That is the whole point, the world in in a serious mess, and this type of things doesnt help.... If you couldnt afford it in the first place, EVEN if the banks offer you the money, you should never have taken it.
Or what should have happened is the house that was being purchased should have been more within the price range, so that it CAN BE PAID BACK...
I dont agree with kicking people out of their home, and I think the Rental Scheme is a good idea, if those that are doing it can stick to their guns and be a bit more frugal.
For example, a bank concerned that one of its customers may not be able to repay a loan can protect itself against loss by transferring the credit risk to another party while keeping the loan on its books.