Friday, November 6, 2009
Obama Signs Home Owner Tax Credit Extension?
The legislation, which now has been signed by President Obama, will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30, 2010. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new primary residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their primary residence for five consecutive years out of the last eight.
Wednesday, October 14, 2009
Homebuyer tax credit
The following is from Senator Kyl's office. According to Senator's Kyl's legislative counsel, the following is being circulated by lobbyists regarding the homebuyer tax credit:
Homebuyer credit extension and expansion to pass the Senate. The Senate is lining up to pass a $16.7 b. six-month extension of the first-time homebuyer credit with an expansion to include all homebuyers and a doubling of the present law income limits to $300,000 for couples and $150,000 for individuals. Senators Johnny Isakson (R-GA) and Chris Dodd (D-CT) plan to offer their amendment to the unemployment extension bill the Senate may take up next week. A similar effort fell short by a vote of 47-50 on August 6, 2009. Senate Majority Leader Harry Reid (D-NV), several other Democrats, and most Republicans support the amendment too. So far, the amendment seems slated to pass without paying for it, although Republicans will push an amendment to require stimulus funds to be reprogrammed to pay for it.
Homebuyer credit extension and expansion to pass the Senate. The Senate is lining up to pass a $16.7 b. six-month extension of the first-time homebuyer credit with an expansion to include all homebuyers and a doubling of the present law income limits to $300,000 for couples and $150,000 for individuals. Senators Johnny Isakson (R-GA) and Chris Dodd (D-CT) plan to offer their amendment to the unemployment extension bill the Senate may take up next week. A similar effort fell short by a vote of 47-50 on August 6, 2009. Senate Majority Leader Harry Reid (D-NV), several other Democrats, and most Republicans support the amendment too. So far, the amendment seems slated to pass without paying for it, although Republicans will push an amendment to require stimulus funds to be reprogrammed to pay for it.
Friday, September 4, 2009
Governor repeals change to anti-deficiency
A WIN FOR AAR: Governor signs bill that repeals change to anti-deficiency statute. Governor Jan Brewer signed HB 2008, which repeals SB 1271 and its change to the anti-deficiency statute. AAR would like to thank our members for their quick response and action on this matter. AAR's success is due, in part, to members like you who help engage on issues down at the Capitol. AAR will continue to work with legislators and industry stakeholders to protect homeowner rights at the Capitol.
Monday, August 31, 2009
When do I get my keys?
Provided you are purchasing a home that will be financed, close of escrow (COE) is NOT the day you sign documents but the day of recordation (when the deed is recorded). You MUST sign documents a MINIMUM of 24 hours prior to COE. After signing documents the title company will send the docs to the lender who will fund (usually) by 10 am the next business day. This allows for recordation by 4pm and your keys by 4:01pm.
COE Tip: DO NOT sign or select COE for a Friday, Murphy's Law says you will not get keys until Monday!
COE Tip: DO NOT sign or select COE for a Friday, Murphy's Law says you will not get keys until Monday!
Friday, July 17, 2009
New Arizona Anti-Deficiency Statutes
New Law Limiting the Protection of Arizona Anti-Deficiency Statutes
By: Aaron M. Green and Christopher A. Combs July 10, 2009
The Governor of Arizona signed into law (effective September 30, 2009) a significant amendment to Arizona's anti-deficiency statutes. This new law decreases the protection to Arizona homeowners after they lose their home to foreclosure.
The anti-deficiency statutes had not been amended since 1990. The Arizona anti-deficiency statutes (primarily A.R.S. §33-814(G)) generally protect most homeowners from being sued after foreclosure by their lender for any unpaid balance of the loan, i.e., deficiency, if the home was "utilized" as a "dwelling."
The Arizona courts have ruled that even vacation homes rented out by investors for only a few weeks of the year were being "utilized" as a "dwelling." The new law states that homes must be utilized as a dwelling "by the trustor [borrower] under the deed of trust for at least six consecutive months...." (Emphasis added.) Therefore, occupancy of the home for at least six consecutive months prior to the foreclosure is now required.
Does the six-month occupancy requirement only protect owner-occupied homes, or do investors with tenants who meet the six-month occupancy requirement have the same protection?
Our opinion at Combs Law Group is that investment homes will continue to have the same protection as owner-occupied homes under the anti-deficiency statutes.
Does the six-month occupancy requirement apply only to foreclosure of loans entered into after September 30, 2009, or to all foreclosures that occur after that date? Our opinion at Combs Law Group is that the six-month occupancy requirement applies to all foreclosures after September 30, 2009, and that the borrower will have to prove at that time the six-month occupancy requirement even though the loan documents may have been executed years earlier
Senate Engrossed ------------------------ State of Arizona Senate Forty-ninth Legislature First Regular Session 2009 ------------- CHAPTER 68 -- SENATE BILL 1271 AN ACT AMENDING SECTION 33-814, ARIZONA REVISED STATUTES; RELATING TO DEEDS OF TRUST.Be it enacted by the Legislature of the State of Arizona:Section 1. Section 33-814, Arizona Revised Statutes, is amended to read:33-814. Action to recover balance after sale or foreclosure on property under trust deed A. Except as provided in subsections F and G of this section, within ninety days after the date of sale of trust property under a trust deed pursuant to section 33-807, an action may be maintained to recover a deficiency judgment against any person directly, indirectly or contingently liable on the contract for which the trust deed was given as security including any guarantor of or surety for the contract and any partner of a trustor or other obligor which is a partnership. In any such action against such a person, the deficiency judgment shall be for an amount equal to the sum of the total amount owed the beneficiary as of the date of the sale, as determined by the court less the fair market value of the trust property on the date of the sale as determined by the court or the sale price at the trustee's sale, whichever is higher. A written application for determination of the fair market value of the real property may be filed by a judgment debtor with the court in the action for a deficiency judgment or in any other action on the contract which has been maintained. Notice of the filing of an application and the hearing shall be given to all parties to the action. The fair market value shall be determined by the court at a priority hearing upon such evidence as the court may allow. The court shall issue an order crediting the amount due on the judgment with the greater of the sales price or the fair market value of the real property. FOR THE PURPOSES OF THIS SUBSECTION, "fair market value" shall mean MEANS the most probable price, as of the date of the execution sale, in cash, or in terms equivalent to cash, or in other precisely revealed terms, after deduction of prior liens and encumbrances with interest to the date of sale, for which the real property or interest therein would sell after reasonable exposure in the market under conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably and for self-interest, and assuming that neither is under duress. Any deficiency judgment recovered shall include interest on the amount of the deficiency from the date of the sale at the rate provided in the deed of trust or in any of the contracts evidencing the debt, together with any costs and disbursements of the action.B. If a trustee's sale is a sale of less than all of the trust property or is a sale pursuant to one of two or more trust deeds securing the same obligation, the ninety day time limitations of subsection A of this section shall begin on either the date of the trustee's sale of the last of the trust property to be sold or the date of sale under the last trust deed securing the obligation, whichever occurs last.C. The obligation of a person who is not a trustor to pay, satisfy or purchase all or a part of the balance due on a contract secured by a trust deed may be enforced, if the person has so agreed, in an action regardless of whether a trustee's sale is held. If, however, a trustee's sale is held, the liability of a person who is not a trustor for the deficiency is determined pursuant to subsection A of this section and any judgment for the deficiency against the person shall be reduced in accordance with subsection A of this section. If any such action is commenced after a trustee's sale has been held, it is subject, in addition, to the ninety day time limitations of subsections A and B of this section.D. If no action is maintained for a deficiency judgment within the time period prescribed in subsections A and B of this section, the proceeds of the sale, regardless of amount, shall be deemed to be in full satisfaction of the obligation and no right to recover a deficiency in any action shall exist.E. Except as provided in subsection F of this section, the provisions of this chapter do not preclude a beneficiary from foreclosing a deed of trust in the same manner as a real property mortgage. In an action for the foreclosure of a deed of trust as a real property mortgage the provisions of chapter 6, article 2 of this title are applicable.F. A deed of trust may, by express language, validly prohibit the recovery of any balance due after trust property is sold pursuant to the trustee's power of sale, or the trust deed is foreclosed in the manner provided by law for the foreclosure of mortgages on real property.G. If trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling BY THE TRUSTOR UNDER THE DEED OF TRUST FOR AT LEAST SIX CONSECUTIVE MONTHS AND FOR WHICH A CERTIFICATE OF OCCUPANCY HAS BEEN ISSUED is sold pursuant to the trustee's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses. THE TRUSTOR IS RESPONSIBLE FOR DEMONSTRATING THAT THE TRUST PROPERTY WAS USED BY THE TRUSTOR AS A ONE-FAMILY OR A SINGLE TWO-FAMILY DWELLING FOR AT LEAST SIX CONSECUTIVE MONTHS. APPROVED BY THE GOVERNOR JULY 10, 2009.FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 10, 2009.
By: Aaron M. Green and Christopher A. Combs July 10, 2009
The Governor of Arizona signed into law (effective September 30, 2009) a significant amendment to Arizona's anti-deficiency statutes. This new law decreases the protection to Arizona homeowners after they lose their home to foreclosure.
The anti-deficiency statutes had not been amended since 1990. The Arizona anti-deficiency statutes (primarily A.R.S. §33-814(G)) generally protect most homeowners from being sued after foreclosure by their lender for any unpaid balance of the loan, i.e., deficiency, if the home was "utilized" as a "dwelling."
The Arizona courts have ruled that even vacation homes rented out by investors for only a few weeks of the year were being "utilized" as a "dwelling." The new law states that homes must be utilized as a dwelling "by the trustor [borrower] under the deed of trust for at least six consecutive months...." (Emphasis added.) Therefore, occupancy of the home for at least six consecutive months prior to the foreclosure is now required.
Does the six-month occupancy requirement only protect owner-occupied homes, or do investors with tenants who meet the six-month occupancy requirement have the same protection?
Our opinion at Combs Law Group is that investment homes will continue to have the same protection as owner-occupied homes under the anti-deficiency statutes.
Does the six-month occupancy requirement apply only to foreclosure of loans entered into after September 30, 2009, or to all foreclosures that occur after that date? Our opinion at Combs Law Group is that the six-month occupancy requirement applies to all foreclosures after September 30, 2009, and that the borrower will have to prove at that time the six-month occupancy requirement even though the loan documents may have been executed years earlier
Senate Engrossed ------------------------ State of Arizona Senate Forty-ninth Legislature First Regular Session 2009 ------------- CHAPTER 68 -- SENATE BILL 1271 AN ACT AMENDING SECTION 33-814, ARIZONA REVISED STATUTES; RELATING TO DEEDS OF TRUST.Be it enacted by the Legislature of the State of Arizona:Section 1. Section 33-814, Arizona Revised Statutes, is amended to read:33-814. Action to recover balance after sale or foreclosure on property under trust deed A. Except as provided in subsections F and G of this section, within ninety days after the date of sale of trust property under a trust deed pursuant to section 33-807, an action may be maintained to recover a deficiency judgment against any person directly, indirectly or contingently liable on the contract for which the trust deed was given as security including any guarantor of or surety for the contract and any partner of a trustor or other obligor which is a partnership. In any such action against such a person, the deficiency judgment shall be for an amount equal to the sum of the total amount owed the beneficiary as of the date of the sale, as determined by the court less the fair market value of the trust property on the date of the sale as determined by the court or the sale price at the trustee's sale, whichever is higher. A written application for determination of the fair market value of the real property may be filed by a judgment debtor with the court in the action for a deficiency judgment or in any other action on the contract which has been maintained. Notice of the filing of an application and the hearing shall be given to all parties to the action. The fair market value shall be determined by the court at a priority hearing upon such evidence as the court may allow. The court shall issue an order crediting the amount due on the judgment with the greater of the sales price or the fair market value of the real property. FOR THE PURPOSES OF THIS SUBSECTION, "fair market value" shall mean MEANS the most probable price, as of the date of the execution sale, in cash, or in terms equivalent to cash, or in other precisely revealed terms, after deduction of prior liens and encumbrances with interest to the date of sale, for which the real property or interest therein would sell after reasonable exposure in the market under conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably and for self-interest, and assuming that neither is under duress. Any deficiency judgment recovered shall include interest on the amount of the deficiency from the date of the sale at the rate provided in the deed of trust or in any of the contracts evidencing the debt, together with any costs and disbursements of the action.B. If a trustee's sale is a sale of less than all of the trust property or is a sale pursuant to one of two or more trust deeds securing the same obligation, the ninety day time limitations of subsection A of this section shall begin on either the date of the trustee's sale of the last of the trust property to be sold or the date of sale under the last trust deed securing the obligation, whichever occurs last.C. The obligation of a person who is not a trustor to pay, satisfy or purchase all or a part of the balance due on a contract secured by a trust deed may be enforced, if the person has so agreed, in an action regardless of whether a trustee's sale is held. If, however, a trustee's sale is held, the liability of a person who is not a trustor for the deficiency is determined pursuant to subsection A of this section and any judgment for the deficiency against the person shall be reduced in accordance with subsection A of this section. If any such action is commenced after a trustee's sale has been held, it is subject, in addition, to the ninety day time limitations of subsections A and B of this section.D. If no action is maintained for a deficiency judgment within the time period prescribed in subsections A and B of this section, the proceeds of the sale, regardless of amount, shall be deemed to be in full satisfaction of the obligation and no right to recover a deficiency in any action shall exist.E. Except as provided in subsection F of this section, the provisions of this chapter do not preclude a beneficiary from foreclosing a deed of trust in the same manner as a real property mortgage. In an action for the foreclosure of a deed of trust as a real property mortgage the provisions of chapter 6, article 2 of this title are applicable.F. A deed of trust may, by express language, validly prohibit the recovery of any balance due after trust property is sold pursuant to the trustee's power of sale, or the trust deed is foreclosed in the manner provided by law for the foreclosure of mortgages on real property.G. If trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling BY THE TRUSTOR UNDER THE DEED OF TRUST FOR AT LEAST SIX CONSECUTIVE MONTHS AND FOR WHICH A CERTIFICATE OF OCCUPANCY HAS BEEN ISSUED is sold pursuant to the trustee's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses. THE TRUSTOR IS RESPONSIBLE FOR DEMONSTRATING THAT THE TRUST PROPERTY WAS USED BY THE TRUSTOR AS A ONE-FAMILY OR A SINGLE TWO-FAMILY DWELLING FOR AT LEAST SIX CONSECUTIVE MONTHS. APPROVED BY THE GOVERNOR JULY 10, 2009.FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 10, 2009.
Wednesday, July 8, 2009
What is a Short Sale?
A short sale is when your home sells for less than what you owe. It is an agreement between the bank and the seller of the home. The lender may ask the seller for an un-secured note to make up the difference between the proceeds of the sale and the balance due. If either party does not agree with the terms of the deal it does not close. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. Short sale is only an option if foreclosure is eminent and a hardship exists.
Examples of hardships:
Unemployment
Divorce
Medical emergency / sudden illness
Bankruptcy
Death
Examples of hardships:
Unemployment
Divorce
Medical emergency / sudden illness
Bankruptcy
Death
Thursday, June 25, 2009
Can I get rental assistance if I am in foreclosure?
My home is in foreclosure, is there financial assistance for first month rent, security deposit and cleaning fee for a rental?
I got a call today from a client that is scheduled for foreclosure next week and he wanted to know if the security deposit, cleaning fee and first month rent would be reduced (or waived) since he was in foreclosure and financially strapped. The answer is 'usually not'.
The security deposit is insurance for your new landlord in the event you do not pay your rent. This gives them a buffer so when they evict you , clean it up and get it re-rented your deposit covers what is hopefully only the month they 'lost'. If you satisfy the terms of the lease the security deposit is usually refundable.
The cleaning deposit is used when you vacate the home and it is typically non-refundable. It doesn't matter if you leave the place in immaculate condition it still needs a good thorough cleaning.
Some landlords will allow you to split your deposits out over a few months but most feel that if you cannot provide move-in costs you are probably going to have a difficult time making rent.
I got a call today from a client that is scheduled for foreclosure next week and he wanted to know if the security deposit, cleaning fee and first month rent would be reduced (or waived) since he was in foreclosure and financially strapped. The answer is 'usually not'.
The security deposit is insurance for your new landlord in the event you do not pay your rent. This gives them a buffer so when they evict you , clean it up and get it re-rented your deposit covers what is hopefully only the month they 'lost'. If you satisfy the terms of the lease the security deposit is usually refundable.
The cleaning deposit is used when you vacate the home and it is typically non-refundable. It doesn't matter if you leave the place in immaculate condition it still needs a good thorough cleaning.
Some landlords will allow you to split your deposits out over a few months but most feel that if you cannot provide move-in costs you are probably going to have a difficult time making rent.
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