Harper, a Republican lawmaker from Surprise, acknowledged that lenders may have ignored normal underwriting standards. But he said that’s not their fault. He also said he does not believe that the banks bear some responsibility for the bad loans and should have to absorb some of the losses when borrowers default.
Another prime example of an elected official representing the financial sector to the grave peril of his constituents, AZ House member Jack Harper is gearing up to introduce a bill at the behest of his friends at the AZ Bankers Association. Arizona is a non-deficiency state. In Florida, when a family looses their home in a fraudclosure they will be liable for the remaining foreclosure balance after the bank resells the home.
Here’s a real life example from Florida.
In 2006, the Woodruff family fell prey to a $172k predatory Countrywide mortgage.
Fraudclosure ensued, via a Renee Hertzler, BoA robosigned assignment to a securitized trust. The final judgment (addition of “fees, expenses, charges) was for $222k.
The trust sold the home to a new buyer for $44k.
The family, having lost their home, is still liable for $222k – $44k = $178k.
This doesn’t happen in Arizona because Arizona is a “non-recourse” state”. Representative Harper is quoted in a December 10, 2011 Arizona Daily Star article, “Arizona’s status as one of a handful of “nonrecourse” states is keeping the real estate market from recovering here.” Another idiot that we the people voted into a position of power who appears to believe that dogging families who’ve been fraudclosed with massive debt will help a state’s economy recover.
If a family loses their home in an Arizona non-judicial fraudclosure, they are in one of the few states that allows the family to regroup and get back on their feet without the onerous predatory mortgage debt following them into perpetuity. But Arizona elected official Rep. Jack Harper is trying to change all that.
Harper is the chairman of the AZ House Ways and Means Committee, so you AZ people must keep an eye on this committee and communicate your opposition to all members of this committee here and also your district house member.
Arizonans have their work cut out for them. Arizona is the state where SB1259, a very strong chain of title bill, was squelched (dropped) after both lawmaker sponsors, AZ Senator Michele Reagan and AZ Rep. Carl Seel were given favorable outcomes to their own mortgage problems. Click here for Google results for the unbelievable story of corruption behind AZ 1259.
Read more here.