I have helped to draft a bill SB1259 (Arizona Senate) that is going to committee on Tuesday, the 8th. It was sponsored by Arizona Senator Michele Reagan (see below) All Arizona homeowners should be interested in these changes to the Arizona foreclosure statute. It would require the recording of a certification regarding the complete chain of title prior to any non-judicial foreclosure not conducted by an originating lender, or the sale would be voidable. Attorney’s fees would be awarded if a homeowner had to sue to enforce this. THE BANKS HAVE ALREADY TRIED TO KILL IT BUT DID NOT SUCCEED THANKS TO MICHELE.
Email the committee members (except for Michele)to support this bill. You can find their email addresses at www.azleg.gov Look for the Senate Committees for Banking and Insurance. The hearing is Tuesday. The best day to email the committee members is Sunday night or Monday morning so they see it before committee. Michele says that the legislators really do read their personal emails.
Let’s all help to get this bill passed. Stress to your Senator that there is no reason that any Arizonan should oppose greater transparency and clear title in Arizona. Real property rights and clarity of title are at the basis of the governing precepts of this country and every state in it, and have been since our founding. This bill benefits homeowners, investors, and honest bankers alike.
This does not place onerous requirements on anyone. Every foreclosing entity should have ready access to this information or they have no business foreclosing.
|REFERENCE TITLE: foreclosures; proof of ownership|
|First Regular Session 2011|
Senators Reagan, McComish: Biggs
amending title 33, chapter 6.1, article 1, Arizona Revised Statutes, by adding section 33-807.02; relating to deeds of trust.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 6.1, article 1, Arizona Revised Statutes, is amended by adding section 33-807.02, to read:
START_STATUTE33-807.02. Nonoriginator foreclosures; evidence of title; remedy; attorney fees
A. For any beneficiary who is not the originating beneficiary on the deed of trust, the beneficiary shall record a summary document regarding the beneficiary’s legal interest in the deed of trust that contains the following information in chronological order:
1. The full name and address of record of every prior beneficiary on the deed of trust.
2. The date, recordation number or other unique designation of the instrument, and a description of the instrument that conveyed the interest of Each beneficiary.
B. The summary document prescribed by this section shall be recorded at the same time and place that the notice of trustee’s sale is recorded pursuant to section 33-808 and a copy of the summary document shall be attached to any notice of trustee’s sale that is required to be provided as prescribed in section 33-809.
C. Failure to properly record the summary document that demonstrates evidence of title for the FORECLOSING beneficiary as of the date of the trustee’s sale as prescribed by this section results in a voidable sale.
D. Any person with an interest in the trust property may file an action to void the trustee’s sale for failure to comply with this section and is entitled to an award of attorney fees as well as damages as otherwise provided by law if the person substantially prevails, including an award of attorney fees for any injunction or other provisional remedies related to the claim.END_STATUTE