Archive for August, 2009

When Does Arizona’s Anti-Deficiency Law Apply?

There’s been a lot of misinformation going around about the modified Anti-Deficiency Law in Arizona. Many homeowners are unsure whether their bank will sue them for deficiencies after a short sale or a foreclosure. Below are a few things to help clarify this law. These are general guidelines. It is best to seek legal and tax advise pertaining to your particular situation.

1. The Anti-Deficiency Law only kicks in at foreclosure not short sale. If the homeowner decides to short sale the home, the terms and conditions will be agreed upon by the seller and the seller’s creditors. Some lenders may forgive the entire debt. Some lenders may turnover a portion of your debt to a collection agency after the short sale. A homeowner may also refer to the promissory note signed by the borrower to determine the borrowers’ rights and the creditor’s recourse for non-payment.

2. The revised Anti- Deficiency Law applies to foreclosed homes under the following conditions
a. The loan was used to purchase the home called “purchase money loan”. Any loan used to buy a boat, pay off credit cards or other debts, or used as a downpayment for investment or something else is a “non-purchase loan” and is not covered by the Anti-Deficiency Law.

b. The home is a single family home and less than 21/2 acres.
c. The homeowner has lived in the property for at least six months since ownership of the home.

* If all these qualifications are present, the Anti-Deficiency Law applies

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August 26, 2009 at 10:52 am Leave a comment

Seven Reasons For A Real Estate License Denial in Arizona

I attended a real estate class recently as part of my continuing education and received valuable information that is interesting for anyone to know.

Seven Reasons for Real Estate License Denial in Arizona

1. Unlawful possession of drugs.
2. Failure to disclose a previous adverse judgment
3. Prior conviction of theft
4. Continuing to sell real estate after suspension of license
5. Child molestation
6. Committed Felony
7. Payment from the recovery fund

August 15, 2009 at 8:17 am Leave a comment

Anti-Deficiency Law is Changing

The anti-deficiency law is changing. These changes are incoporated in SB 1271 and effective September 30, 2009. The National Board of Realtors (NAR) is making an effort to repeal this law.
The change was intended to limit the type of borrowers that will qualify for anti-deficiency treatment. A borrower may be subject to a deficiency action or sued on its note following a foreclosure or short sale under the following circumstances.

1. If the property is more than 21/2 acres.
2. If the property is not a single-family or two-family dwelling.
3. If the borrower or trustor has not lived in the property for at least six months.
4. In some cases, if the money loaned was not used to purchase the home (e.g. cash out refinance or HELOC).

Under the new law, a property that has not been used by the trustor as a dwelling for at least 6 consecutive months will no longer qualify for anti-deficiency treatment. The previous law states that – as long as the property was used as a dwelling by someone else. Therefore, many investment properties will be disqualified from getting the anti-deficiency treatment.

You may also read the terms of your lender’s promissory note and other documents. Every situation is different and there are exemptions to the general guidelines. Consult a tax accountant or real estate attorney to know your rights and consequences of a short sale or foreclosure.

August 10, 2009 at 12:58 pm Leave a comment

How Do You Know if the Real Estate Market is Getting Better?

How Do you Know if the Real Estate Market is Getting Better?

1. Mortgage Application is rising.
2. Retail, restaurants and shops are busy.
3. Realtor Applications Increase.
4. Title Companies are busy.
5. Open House signs increase.
6. More visitors show up for open houses.
7. New construction permits increase.
8. New houses are being built next to busy streets.

Looks to me like all of these are happening. Good news to every homeowner, we are on the road to recovery.

August 4, 2009 at 9:23 pm 1 comment