In March, as a record number of homes were foreclosed on in metropolitan Phoenix, several pieces of Arizona legislation that would have helped homeowners facing foreclosure or dealing with the aftermath died.
Six of seven bills that made up the proposed Foreclosure Rescue for Arizona Act were never heard in the Legislature. The one piece of legislation from the package to be heard in the House would require landlords to give renters more notice and time to move out of foreclosure homes. This would help Arizona residents but not struggling homeowners. The bill is supposed to be heard in the Senate later this week.
Unfortunately, the state's foreclosure crisis isn't over. There are many more struggling homeowners who need help, and a growing number of other homeowners who are giving up and walking away because they don't see the housing market rebounding.
Last month, a record 5,556 homes across metropolitan Phoenix were foreclosed on by lenders, reports the Information Market. That's a 30 percent increase from February. Pre-foreclosures climbed to 8,045 last month, up from 7,604 the month before.
Other legislation is still alive that can help homeowners facing foreclosure.
House Bill 2626: This bill would require a lender to contact a homeowner to talk about the options to avoid foreclosure. This would apply to homes purchased between 2003 and 2008, and would exclude investors.
House Bill 2309: This bill would regulate the growing number of foreclosure consultants in the state. Many Valley homeowners have lost money and even their homes after paying firms to help them with government-backed loan modifications. There are reputable firms helping homeowners facing foreclosure, but hundreds of homeowners have been caught up in scams. Homeowners can receive free help from counselors certified by the U.S. Department of Housing and Urban Development by calling the Arizona foreclosure hotline at 877-448-1211.
Senate Bill 1130: This bill makes it illegal for foreclosure consultants to take up-front fees from homeowners.
These three pieces of legislation will help assist with the state's foreclosure crisis. They are Republican-backed. The Foreclosure Rescue for Arizona Act package of bills also would have helped. It was backed by Democrats.
Foreclosure help shouldn't be a partisan issue. A record number of Phoenix-area Democrats and Republicans are losing their homes now.
For a full rundown on the state's foreclosure legislation this session, go to www.az central.com/community /phoenix/articles/2010/04 /05/20100405foreclosure- bills.html?source=nletter- news.
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