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 ARS Section 33-814(G)   Staff Memo

Arizona Senate Research Staff Memo Dated June 8, 2009

What follows is the text of the Arizona Senate research staff memo dated June 8, 2009, a memo that miss-stated Arizona law and miss-stated the text of Arizona Senate Bill SB 1271:

Purpose  Modifies the residency requirements that apply to foreclosed properties and deficiency judgments.

Background  A deed of trust is a deed that conveys trust property to a trustee or trustees to secure the performance of a contract.  Arizona statute defines trust property as any legal, equitable, leasehold or other interest in real property that is capable of being transferred, whether or not it is subject to any prior mortgages, trust deeds, contracts for conveyance of real property or other liens or encumbrances.

When a foreclosed home is sold at auction, the deficit amount that the lender does not receive from the mortgage balance and expenses due is called deficiency.  In many cases, the lender has the option to get a judgment in this amount against the borrower, called a “deficiency judgment.”  Current law protects a trustor (often the borrower) from losing their home in a deficiency judgment if he or she dwelt in the property and the lender takes a loss.  Investment property, however, is not protected from a deficiency judgment.

The strike-everything amendment modifies the residency requirements for foreclosed homes and deficiency judgments.

Provisions  1.      Contains the following requirements in order for a deficiency judgment on a single one-family or two-family trust property to be prohibited:

a)      Requires the trustor to have lived in the trust property for at least six consecutive months.

b)      Requires a certificate of occupancy to have been issued for the property.

c)      Places responsibility on the trustor to demonstrate that the trust property was utilized by the trustor for six consecutive months."

2.      Makes technical and conforming changes.

3.      Becomes effective on the general effective date.

Join KEYTLaw's Campaign Calling for the Current Special Session of the Arizona Legislature to Fix the Broken Law

KEYTLaw real estate attorneys Richard Keyt and Jeana Morrissey have written a letter to Arizona Governor Jan Brewer asking her to amend her call a special session of the legislature to include fixing Arizona Revised Statutes Section 33-814(G).  We request that readers of this article also write a letter to Governor Brewer requesting that she ask the current special session of the legislature to consider fixing Section 33-814(G).  We've made it very easy for you to send the message to the Governor.  Just print our pre-addressed request letter, sign it and mail it to Governor Brewer.  We hope that the governor gets a large number of letters.

Please print our letter to Governor Brewer, sign it and mail it to the Governor at the address at the top of the letter.  Our letters are here:

Schedule an Arizona Foreclosure Law Consultation

If you have questions about Arizona foreclosure law and the legal consequences of defaulting on a loan secured by a lien on an Arizona home, hire Arizona real estate attorney Jeana Morrissey to review your loan situation and answer your questions.  Jeana offers a one hour in office or over the phone consultation for $299.  Contact Jeana at 602-906-4953, ext. 4 or jrm@keytlaw.com. To hire Jeana, complete our online consultation agreement.  To schedule a consultation, call Jeana's legal assistant Milena at 602-424-4159.

About KEYTLaw, LLC, and Jeana Morrissey

Information on www.keytlaw.com about Arizona foreclosure law and real estate matters is provided as a public service by KEYTLaw, LLC, and Jeana Morrissey, a residential and commercial real estate attorney licensed to practice law in Arizona.  Jeana's telephone numbers are 602-906-4953, ext. 4 (voice) & 602-798-7682 (fax), and her email address is jrm@keytlaw.com.  Communicating with Jeana Morrissey or KEYTLaw, LLC, personnel via email or otherwise does not cause you to become a client or cause your communications to be confidential or subject to the attorney client privilege.

Call Governor Brewer’s office at (602) 542-4331 and tell her you want SB 1271 repealed.

Join Our Campaign Calling for the Current Special Session of the Arizona Legislature to Fix the Broken Law

KEYTLaw real estate attorneys Richard Keyt and Jeana Morrissey have written a letter to Arizona Governor Jan Brewer asking her to amend her call a special session of the legislature to include fixing Arizona Revised Statutes Section 33-814(G).  We request that readers of this article also write a letter to Governor Brewer requesting that she ask the current special session of the legislature to consider fixing Section 33-814(G).  We've made it very easy for you to send the message to the Governor.  Just print our pre-addressed request letter, sign it and mail it to Governor Brewer.  We hope that the governor gets a large number of letters.

Please print our letter to Governor Brewer, sign it and mail it to the Governor at the address at the top of the letter.  Our letters are here:

Letter to Governor Brewer - Word 2003 format (editable)

Letter to Governor Brewer - Adobe pdf format (not editable)

Schedule an Arizona Foreclosure Law Consultation

If you have questions about Arizona foreclosure law and the legal consequences of defaulting on a loan secured by a lien on an Arizona home, hire Arizona real estate attorney Jeana Morrissey to review your loan situation and answer your questions.  Jeana offers a one hour in office or over the phone consultation for $299.  Contact Jeana at 602-906-4953, ext. 4 or jrm@keytlaw.com. To hire Jeana, complete our online consultation agreement.  To schedule a consultation, call Jeana's legal assistant Milena at 602-424-4159.

This page was last modified on July 29, 2009.

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