Arizona Bill Would Void Foreclosures Without a Full Title History
People have been encountering serious financial problems in Arizona for many reasons, and one of the foundations of all of these problems involves the mortgages that people can no longer pay after variable rates are recalculated. Unfortunately, this ongoing problem has led to a record number of foreclosure filings and the need by many people to seek the help of an Arizona bankruptcy lawyer as soon as possible in an attempt to save their homes. However, there could be good news on the way that could help countless Arizona homeowners avoid having to take these steps.
Specifically, a bill is making its way through the legislature that would require lenders to produce a clear chain of title to the borrower before proceeding with a foreclosure. Foreclosures that took place without meeting this requirement would be deemed void under Arizona law. Basically, this law would require lenders to communicate with borrowers how they came to possess the title on their home, who the creditors who own the note are and how they have any right to proceed to take back the property in question.
The bill is seen as potentially good news by consumer advocacy groups, consumers themselves and Arizona bankruptcy lawyers who have been clamoring for some sort of law to be put in place that would prevent the growing number of foreclosures that are being done with shoddy or even nonexistent documentation that provides evidence of the right of lenders to take the property back from the borrower and to sell it. The buying and selling of mortgages and mortgage-backed securities has been one of the developments that has led to this problem.
Arizona Bankruptcy Lawyers
Clearly, if this bill becomes law it would provide some leverage to borrowers who to this point have had little choice but to file for bankruptcy in an attempt to save their homes or to simply give their homes back to their lender. Therefore, this requirement would likely lower the current foreclosure rate, which currently sits at one in every 175 homes in the state and likely provide different options for those borrowers who have encountered a wider range of financial problems than their delinquent mortgages.
If you find yourself in a position of financial difficulty, you need to seek the help of experienced Arizona bankruptcy lawyers who have been helping people out from under their financial struggles for many years.The Phillips Law Group recommends the experienced bankruptcy attorneys atArentz Law Group PLLC for all of your bankruptcy needs. Call today to schedule a free initial consultation!