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Buyers of Countrywide Foreclosure Homes Get Some Relief in Arizona

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By : John Cutts    99 or more times read
Buyers of Countrywide foreclosure homes, other types of foreclosed properties and existing dwellings in Arizona will benefit from a recent ruling which prevents resale fees from being included in house purchase contracts. This means that buyers who plan on selling the properties later will not be troubled by developers asking for a cut from their sales money.

With Tucson foreclosure listings and foreclosed property numbers in other cities and counties of the state continuing to pose problems, developers and real property companies have tried to find other ways to raise money and one of these ways is through resale fee provisions included in sales contracts.

Under the recovery or resale fee provision, buyers of newly built houses and properties under foreclosure listings in Arizona are required to give developers or builders part of the money that they will get should they decide to resell the house later. Typically, the recovery charge is one percent of the selling price of the residential property.

This provision is carried on through the selling history of the house, covering both existing residences and properties under foreclosed homes listings. This means that if a home was resold for the second time or the third and so on, each seller will have to pay resale charges.

However, under the new state law, buyers of new dwellings, Countrywide foreclosures homes and other foreclosure properties, will not be required to pay the fees. The latest regulation was supported by the state's Association of Realtors. Officials from the association have revealed that other U.S. states have already made moves to weed out recovery fees. So far, 20 states have enacted laws preventing resale fees from being included in residential property sales contracts.

Meanwhile, real estate developers and other third party firms involved in the sale of residential properties have criticized the law, arguing that the recovery fees were there to help finance infrastructure and real estate development projects.

They stated that, with the housing market in its current condition, raising money for development projects are very difficult and the fees actually help in developing housing markets that have been hit hard by huge numbers of bank foreclosures, including Countrywide foreclosure homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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