Homeowner Rights After Foreclosure Expanded

September 23, 2013
Arizona Daily Star 
mortgage lending news

Arizona's Court of Appeals, in a precedent-setting decision, has ruled that state residents who lose title to their homes in foreclosure actions are legally entitled to occupy the property during appeal. The judges rejected arguments by a bank that it can automatically evict owners once it gets title to a home.

Instead, they ruled that title to the property and eviction are two separate legal issues and that property owners are entitled to the same protections as renters who appeal an eviction in a landlord-tenant dispute. Affected homeowners who seek to remain in place must, however, post a bond. A lawyer for the Maricopa County couple at the center of the case contended that should equal no more than each month's market rent -- which, he said, is likely less than the mortgage payments the owners could not meet.

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