Tucson Land Use Law Blog

Tucson Land Use Law Blog

Insight & commentary on local land use and real estate issues

Category Archives: Foreclosure Topics

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The Next Default Tidal Wave

Posted in Foreclosure Topics
While most reports show an improving housing market, it seems that the fallout from the housing borrowing binge has yet to fully materialize.  According to Reuter’s Peter Rudegeair, “U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to … Continue Reading

MERS Exodus

Posted in Foreclosure Topics, Tax Lien Foreclosure
The Mortgage Electronic Registration System (MERS) was created by the mortgage industry to fast-track the loan assignment process and helped bypass the burden of having to record every assignment.  MERS was a perfect solution during the mortgage securitization frenzy.  When the housing bubble imploded and foreclosure activity went through the roof, MERS found itself the target … Continue Reading

National Mortgage Settlement – Done?

Posted in Foreclosure Topics, Tax Lien Foreclosure
Joseph Smith, the monitor of the National Mortgage Settlement has reported that the five major banks have officially fulfilled the consumer relief obligations of the National Mortgage Settlement.  He further reported that the banks have provided more than $50 billion of gross relief, which allegedly equates to more than $20 billion in credited relief.  Smith … Continue Reading

Another Affirmation of Arizona’s Anti-Deficiency Protections

Posted in Foreclosure Topics
The Arizona Court of Appeals in Phoenix recently ruled in Independent Mortgage Company v. Alaburda, that Arizona’s anti-deficiency law (A.R.S. Section 33-814(G)) protects a borrower who has a fractional interest in a vacation home.  The Alaburdas purchased a 1/10th fractional interest in a single-family residential condo in the exclusive Villas at Seven Canyons in Sedona.  … Continue Reading

Cash Out Refinance – No More Anti-Deficiency Protections in Arizona

Posted in Foreclosure Topics, Tax Lien Foreclosure
The Arizona Court of Appeals (Division 1 in Maricopa County) just issued an opinion entitled Helvetica v. Pasquan, which addresses the scope of Arizona’s anti-deficiency protections in the judicial foreclosure (non-trustee’s sale) context.  The first issue the Court addressed is whether refinancing a purchase money loan forfeits a borrowers’ anti-deficiency protection, to the extent that … Continue Reading

Arizona Joins the Mortgage Servicer Settlement

Posted in Foreclosure Topics
Arizona will receive $1.6 billion of the purported $25 billion joint federal-state settlement with the nation’s five largest mortgage servicers for their role in wide-spread servicer and foreclosure abuses.  Arizona Attorney General Tom Horne’s decision to join the broad settlement also means that his office has reached an agreement with Bank of America over allegations … Continue Reading

The Perpetually Imminent AG Settlement Has Arrived

Posted in Foreclosure Topics, Tax Lien Foreclosure
A long-vaunted settlement arising from the sixteen-month 50-state investigation into faulty bank foreclosure practices, which has perpetually been imminent, has finally concluded.  The deal was struck between federal banking officials, 49 states Attorneys General, and the five largest mortgage servicers – Bank of America Corp., JPMorgan Chase Co., Wells Fargo Co., Citigroup Inc., and Ally … Continue Reading

Principal Reduction – Who’s Willing to Take the Haircut?

Posted in Foreclosure Topics, Tax Lien Foreclosure
Democrats on the House oversight committee have apparently been pushing to subpoena the Federal Housing Finance Agency ("FHFA") to obtain an analysis looking at what effects principal reductions would have on Fannie Mae and Freddie Mac.  As HousingWire has reported, FHFA Acting Director Edward DeMarco has long defended the agency’s policy of keeping Fannie and … Continue Reading

Election Year Bravado

Posted in Foreclosure Topics, Tax Lien Foreclosure
A new federal federal task force, dubbed the "Residential Mortgage-Backed Securities Working Group" led by New York Attorney General Eric Schneiderman has sent subpoenas to the 11 largest financial institutions in the past few days as part of its investigation into possible residential mortgage-backed securities fraud.  Attorney General Eric Schneiderman who was cast off the central … Continue Reading

“Independent Foreclosure Review” – Oh, Sorry About That….

Posted in Foreclosure Topics, Tax Lien Foreclosure
Fourteen U.S. mortgage servicers and their affiliates are making available a free, "impartial" Independent Foreclosure Review process (website – Independent Foreclosure Review) to certain of their borrowers, as part of certain consent orders entered into with federal bank regulators, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and … Continue Reading

Hunting Season Has Opened on MERS

Posted in Foreclosure Topics
The Mortgage Electronic Registration System ("MERS") is increasingly under attack from multiple angles.  MERS describes itself as "an innovative process that simplifies the way mortgage ownership and servicing rights are originated, sold and tracked."  Created by the real estate finance industry, including many of the largest lenders and Fannie Mae, MERS allegedly "eliminates the need … Continue Reading

The Dirty Dozen Feeling the Heat from the Feds?

Posted in Foreclosure Topics, Land Use
When it rains, it pours.  The fallout from the artificially generated housing bubble and the attendant financial crisis is really starting to take hold against the various major players in the banking industry.  It seems everyone with any stake in the mortgage meltdown, from individual home owners to purchasers of mortgage-backed securities, are seeking their … Continue Reading

The Death of Dual-Tracking?

Posted in Foreclosure Topics, Tax Lien Foreclosure
Housing Wire recently reported that the Federal Housing Finance Agency (FHFA) has directed the two government sponsored agencies, Fannie Mae and Freddie Mac to align their guidelines for servicing delinquent mortgages. Previously, they maintained different requirements for how their mortgage servicers would treat loan backed by Freddie and Fannie.  This new push for alignment may … Continue Reading

Bank of America – Doing What it Seems to Do Best

Posted in Foreclosure Topics, Real Estate, Tax Lien Foreclosure
I took three different calls this past week from homeowners who have sought the assistance of Bank of America’s servicing subsidiary, BAC Home Loans Solutions, for a loan modification.  What most unsuspecting homeowners do not realize is that BAC simply has no vested interest in actually making good on the false promises it continues to … Continue Reading

Bank of America in the Cross Hairs

Posted in Foreclosure Topics
Arizona Attorney General Terry Goddard announced that on December 17, 2010, his Office filed a lawsuit against Bank of America and its affiliated companies  alleging violations of the Arizona Consumer Fraud Act and violations of the consent judgment entered in March 2009 between Arizona and the Countrywide companies owned by Bank of America. The lawsuit, … Continue Reading

Careful When You Close The Door Behind You

Posted in Foreclosure Topics, Land Use, Real Estate, Tax Lien Foreclosure
A San Diego police officer and his wife recently pleaded not guilty to accusations that they trashed their foreclosed home in Riverside County, taking $44,000 in appliances and fixtures with them when they moved out.  Both have been charged with one felony count of damaging or carrying away items from a foreclosed property.  Damage was … Continue Reading

Here Come the Feds

Posted in Foreclosure Topics, Real Estate, Tax Lien Foreclosure
On October 20, 2010, the White House issued the following Fact Sheet:  FACT SHEET: Federal Government Efforts to Support Accountability, Stability and Clarity in the Housing Market Today the Department of Housing and Urban Development, the Department of the Treasury, the Department of Justice, the Board of Governors of the Federal Reserve System, the Office … Continue Reading