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Foreclosed and Real Estate Owned Properties Bills Under Study

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By : John Cutts    99 or more times read
Several legislative bills are in the works in Arizona to help address problems related with foreclosures and real estate owned properties. According to local reports, the bills are aimed at helping homeowners save their homes and, at the same time, protect them from fraudulent activities.

To ease the problem of huge numbers of foreclosed and bank owned homes in Phoenix and in the rest of Arizona, lawmakers are reportedly trying to iron out issues related to processing and homeowner protection. One of the bills being considered will require judges to verify whether lenders have followed procedures properly prior to instigating a foreclosure action against a borrower. Lawmakers stated that the bill will help homeowners avoid fraud.

With foreclosures and bank owned homes in Arizona continuing to rise, legislators are reportedly concerned that homeowners are not being provided with information about the options available to them to avoid foreclosure. Lawmakers are also looking at provisions that will require banks to respond to homeowners' inquiry within a month, and a rule that will prevent lenders from foreclosing on a property whose owner is in the process of negotiating for a mortgage modification.

State legislators are reportedly ironing out details on at least 10 legislative bills that are designed to address real estate owned properties and foreclosure related concerns. Other measures under consideration include a proposal that will allow troubled homeowners to remain in their properties as renters and a measure that will set a definite length of time before a foreclosed owner can be evicted from his home.

Some industry experts have criticized the proposal to use a judicial process in handling foreclosure cases in the state. They argued that a judicial process will not protect homeowners and that legislators should focus instead on foreclosure education for troubled homeowners and even for people who buy bank owned houses. They also asserted that improved counseling services will also go a long way towards helping homeowners avoid foreclosure.

The bills have yet to be presented at hearings and are still in the process of being completed. According to industry observers, a big part of the provisions will help lower the number of foreclosures and real estate owned properties in the state by assisting troubled homeowners.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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