Arizona senators vote to start over on loan issue

AP News
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Posted: Nov 19, 2009 11:47 AM

Arizona legislators want to start from scratch on possibly revising a law protecting homeowners from post-foreclosure lawsuits.

The Legislature last summer significantly narrowed a law that barred lenders from suing homeowners for mortgage amounts not covered by foreclosure sale proceeds.

Bankers claimed there were abuses by borrowers walking away from loans. But the Legislature then repealed the changes when real estate agents complained about possible effects on home sales.

A new bill was prepared in the current special session to restore the old protection except for new loans involving homes built for resale.

But senators say they're being rushed and voted Wednesday to undo all the changes. They say they want to sort it all out later.