Thank God that Governor Brewer signed the legislation repealing SB 1271 here in Arizona. I had reviewed the implications of the law with Mark Winsor, attorney athere in Arizona that specialized in bankruptcy. Mark explained to me how the law was flawed and needed to be repealed. I can’t claim to properly explain it to you as I am not an attorney. However, what was conveyed to me was that they are 2 different laws here in Arizona that protect home buyers in the case of foreclosure from recourse. My understanding of what he said was that this law, SB 1271, only dealt with one of the laws. It therefore, left protection for investors based on the other law. OK, wait, only sometimes. What??? What kind of law is this…a flawed law. It had to repealed. I know of other attorneys that were waiting for it to go into action, just to appeal it.
The law was not lettng investors off the hook, or as Tanya Wheeless stated in the Arizona Republic today, “Time for state to hold investors accountable.” Anyone with a foreclosure on their credit is being held accountable for their error in judgement.
Tanya, how is it that the president and CEO of the Arizona Bankers Association is unaware of how flawed this law was???? Why would you want it in place? I know that many banks where implying it would be very helpful in negotiating more out of sellers in short sales.
Let’s get a way from pointing fingers. Because, if we are pointing fingers then lenders and banks are at the front of the line. Our most sacred of business institutions committed fraud at just about every level. From the way they advertised loans, to pushing people into loans they didn’t understand nor could pay back, oh wait…who exactly “stated” the income on those applications???? they we fraudulent reporting of their books and selling junk paper as AAA???? Lastly, they are getting government money to bail them out, not the investors or homeowners that bought in good faith based on appraisals and what appeared to be true demand. Only the banks knew that thousands of “false” investors bought multiple homes with no ability to pay those mortgages when they did not rent.
I think we should avoid pointing fingers and work on solving the problem. What do you think Tanya?
Just my opinion…Jeff Cameron
480-652-2004