A huge success for Arizona Assoication of Realtors.  It was announced just before the holiday that Governor Jan Brewer signed HB 2008 which repealed SB 1271 that changed Arizona's Antideficiency Statutes.

SB1271 originally started out as a bill dealing with Jail Districts and property tax limits.  A strike everything amendment was introduced in June and the whole direction of the bill changed.

The current anti-deficiency statue gives homeowners protection against a judgment if the property is on 2 1/2 acres or less and is used as a single-family or two-family dwelling.   SB 1271, which almost went into effect, would have required the owner to prove a six-month residency in the property to be covered by the changed statute.

The reason behind SB 1271 was to protect small Arizona Community Banks from huge losses from investors and speculators.  However, the unintended effects are:

 •·         People who have bought a second home as a vacation home.

•·         People who have bought a retirement home.

•·         Parents who bought a home for their children going to college

In these cases, lenders would have been able to go after the purchaser - obtain a judgment and may be able to garnish wages, put liens on bank accounts and the person's primary home.

AAR will continue to work with stakeholders for future legislation.

YEAH AAR!