Democrats say their foreclosure legislation complements president’s plan

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By CAROLINA MADRID
Cronkite News Service

PHOENIX (Thursday, Feb. 19) _ A day after President Barack Obama visited Arizona to announce his relief plan for beleaguered homeowners, House Democrats on Thursday touted five bills they said would offer further help for those facing foreclosure.

“Federal action is not enough,” said Attorney General Terry Goddard, who joined a news conference on a plan called “Foreclosure Relief for a Stronger Arizona.”

“It’s in everyone’s best interests to keep people in their homes,” said Rep. Daniel Patterson, D-Tucson.

Patterson introduced HB 2601, dubbed the Home Owner Relief Act, which would provide homeowners facing foreclosure sales 60 days to negotiate revised payments with lenders. A homeowner would have to provide an affidavit stating, among other things, that the property is that person’s primary residence and that the homeowner has no other real property.

“This would provide a timeout for people who have lost their jobs,” Patterson said.

The bill would postpone foreclosure sales for up to a year if homeowners continue to make payments negotiated during the relief period.

HB 2510, sponsored by Rep. Ben Miranda, D-Phoenix, would require licensing for those who acquire title to homes from owners facing foreclosure sales if they aren’t acquiring primary residences or acting in certain other capacities.

House Democratic leaders said the bill, dubbed the Arizona Home Equity Theft Prevention Act, addresses those who promise to help homeowners stave off foreclosure but deceive them instead, stripping their equity or taking their homes.

HB 2522, sponsored by Rep. Rae Waters, D-Ahwatukee, addresses foreclosure rescue scams by forcing such financial assistance to be handled as a mortgage loan subject to the foreclosure process. Dubbed the Foreclosure Fraud Rescue Act, it also would define fraudulent practices in such cases.

HB 2545, sponsored by Rep. Robert Meza, D-Phoenix, is intended to encourage lenders and homeowners to negotiate terms that keep people in homes. Dubbed the Home Loan Refinancing Act, it would delay a foreclosure sale for up to one year if the lender fails to negotiate in good faith with the borrower.

HB 2464, sponsored by Rep. Barbara McGuire, D-Kearney, would require a landlord to give a tenant at least 60 days notice prior to a foreclosure sale. It would allow renters 30 days to move out and would relieve renters of any obligation for rent or utilities as of the date of a foreclosure sale.

Miranda said foreclosures have devastated all communities, making him hopeful that majority Republicans will support the legislation.

“This is a bipartisan issue, so I do believe that they’ll want to help us,” he said.

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CAPTION FOR BC-CNS-DEMOCRATS-FORECLOSURE: Attorney General Terry Goddard speaks at a news conference Thursday, Feb. 19, 2009, at which House Democratic leaders touted five bills intended to help Arizonans facing foreclosure. Goddard said the bills would complement a federal plan that President Barack Obama unveiled this week in Mesa. (Cronkite News Service Photo/Carolina Madrid)