Buying Arizona Real Estate » Tim L. Greenfield

Arizona Anti-Deficiency bill, SB-1271

Tim L. Greenfield — Mon, 10 Aug 2009 20:22:08 +0000

Courtesy of Tim L. Greenfield, Associate Broker, ABR
Coldwell-Banker Residential Brokerage Scottsdale Arizona

8-10-09

Please visit my website www.GreatScottsdaleLiving.com for updates.

There has been lots of noise about SR-1271 of late. It is scheduled to become effective the end of September. This is a new law intended to assist small community banks that did not receive TARP funds. See Tom Farley’s (CEO of AAR) comments below

Anti-Deficiency Law Update:
“SB 1271 has been getting a lot of press lately as it will have serious and unintended consequences for many real estate owners facing foreclosure in Arizona. In light of this the original sponsor of the bill, Senator Steve Pierce, has asked the legislature and the Governor for an immediate repeal of the law which is slated to go into effect at the end of September. The state’s original anti-deficiency language has been inserted into two budget bills (HB 2008 and SB 1024) currently being debated by the legislature which would have the effect on nullifying the passage of SB 1271. HB 2008 has quickly passed the Arizona House of Representatives. SB 1024 is awaiting final vote which could happen August 8th or on the 10th. If for some reason, the Senate Bill fails on final vote, we will immediately focus on our next effort to repeal the law. The banking lobby and at least one member of the legislature are pushing for an amendment to SB 1271, instead of repeal, that would allow it to still apply retroactively to loans already in existence. We have been advised that this action would ultimately be unconstitutional. Stay tuned for more updates on our efforts to repeal SB 1271 through the bills cited above.

Backgrounder:

SB 1271 – Serious Changes to Arizona’s Anti-Deficiency Statute

SB 1271 was sponsored by Senator Sylvia Allen, a REALTOR® from the White Mountains area of our state. The legislation started out in January as a bill dealing with jail districts and property tax limits. In June a strike-everything amendment gutted the original bill and changed its direction entirely. The Arizona Bankers Association argued successfully that the changes provided in the legislation were necessary because abuses in the current law were costing Arizona-based banks millions in losses. There was significant sympathy for the Arizona community banks in making the changes provided by this legislation. In other words, the legislators found it very easy to hold property investors liable for their debts while arguing that homeowners would still retain their deficiency protection if they lived in the home for six consecutive months. The legislation sailed out of the Senate by a unanimous vote but just barely received enough votes to pass the Arizona House of Representatives. The Governor signed the bill on the last day to sign or veto the legislation.

The current law – Arizona Revised Statutes (A.R.S.) § 33-814 currently states that within 90 days after the date of sale of a trust property under a trust deed, a legal action may be brought to recover a deficiency judgment against the borrower (trustor) who has now had their property foreclosed. The deficiency judgment must be for an amount equal to the sum of the total amount owed as of the date of the sale either by the fair market value of the trust property as determined by the court or the sale price at the trustee’s sale, whichever is higher. The current law prohibits a lender from seeking a deficiency judgment against the trustor (foreclosed property owner) if the trust property is 2.5 acres or less and is used as a single one-family or single two-family dwelling.

Stay tuned to see how this plays out at www.GreatScottsdaleLiving.com.

TLG

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More Signs of Scottsdale / Phoenix Metro’s Housing Bottom.

Tim L. Greenfield — Tue, 04 Aug 2009 20:00:32 +0000

by Tim L. Greenfield, Associate Broker, ABR
Coldwell-Banker Residential Brokerage
www.greatscottsdaleliving.com

8-4-09 Grubb & Ellis BRE Commercial reported last week that the valley (metro) market is “near the bottom”. The Case-Schiller Price Index also released last week showed that the metro market prices declined for the 36th Month in a row through May 2009. June re-sales are up year over year. The RL Brown Phoenix report was more upbeat about the new house construction market. A number of the New Home Builders have repositioned their product with lower price points.

Resale homes continue to grow month over month and year over year. Granted, about half of the re-sale houses are distressed, foreclosure (REO) bank owned or short sales.

Buyers across most market segments and price ranges in the metro area are still enjoying the “Buyer’s Market” for now.

Former Federal Reserve Chairman Alan Greenspan was quoted as saying he is “pretty sure we’ve already seen the bottom” of this recession. He also said he thinks they economy is slowly coming back, and that “collapse is now off the table”.

Last Friday the Federal Government released a report that hinted that the worst recession in the U.S. since WWII appears to be on the verge of ending. The economy only fell at a 1% annualized pace in the second quarter, which was better than anticipated.

It is time for Buyers to get off of the fence if they are waiting for prices to go much lower. It sounds like the window is closing, slowly possibly, but the pendulum is starting to swing back the other way.

If you looking for a buy in this market, especilly bank owned houses, call us.

Questions about the market? Call us at 480-231-5309 or hit our website www.greatscottsdaleliving.com

Tim L. Greenfield
licensed in Arizona
equal housing opportunity

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Has the Scottsdale / Phoenix Metro Market Bottomed?

Tim L. Greenfield — Tue, 04 Aug 2009 19:37:07 +0000

by Tim L. Greenfield, Associate Broker, ABR
Coldwell-Banker Residential Brokerage
www.GreatScottsdaleLiving.com

August 3rd. 2009

ASU researchers have found that the rate of housing price decline slowed and began to level off in April. 2009. There have still been significant year over year decreases across our metro area.

Does this mean our price slide over the last several years is over? ASU also thinks the bottom of the market may be determined to have been reached in May 2009. Only time and hindsight will determine if in fact May was the bottom.

Does it matter? As I have stated many times before, no. Buyers who purchase properties / houses anywhere near the bottom of the housing price cycle, on the way down, at the bottom, or on the way up, will all be quite happy with their properties price appreciation over time as the market completes the correction, returns to “normal”, and appreciates as the cycle is complete. That is not even to mention the economic recovery of the entire country and overall economy from the recession we are currently experiencing.

Additionally, there is a tax credit for first time Buyers of up to $8,000.00, and interest rates continue to be quite low.

For additional information about the market please visit my website www.greatscottsdaleliving.com

Questions? Call me.
Tim Greenfield 480-231-5309

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