Arizona proposal seeks to curb home equity theft

A proposal making its way through the Arizona legislature seeks to prevent the practice of home equity theft in the state.
Arizona is one of 13 states where homeowners can lose their equity if property taxes are late or underpaid, even by mistake. State law allows counties to auction off tax liens to investors, who then collect the debts on properties, which can be foreclosed on if the debts aren’t paid.
The Pacific Legal Foundation (PLF), a libertarian-leaning public interest law firm, argues that under the U.S. Constitution, local governments aren’t allowed to take more value than they are owed.

Arizona proposal seeks to curb home equity theft 5e5d54fb86875.image

Arizona proposal seeks to curb home equity theft 5e5d54fb86875.image

A report released last month by the foundation found that “hundreds of Arizonans have lost their homes for debts as small as $16.46.”
The foundation, which says the practice inflicts “moral and economic harm,” found that equity theft in the state has accounted for a median amount of $64,000 taken from Arizona homeowners.
“Homes examined in our study were foreclosed over taxes and fees that average just 1 percent of the property value. The remaining 99 percent of equity was stolen from the homeowners,” the report said.
Arizona House Bill 2445 wouldn't allow property owners to lose a greater value than the debt owed on their property. Under the bill, sponsored by Rep. Anthony Kern, R-Glendale, once a property is auctioned, former owners would be refunded money above the debt paid.
PLF supports the legislation, which last week passed the House Rules Committee.
“HB 2445 would put an end to this egregious and unconstitutional practice in Arizona,” PLF attorney Jim Manley told The Center Square. “This bill will ensure that Arizonans' property rights are protected, while ensuring that Counties receive the tax revenue they need to function.”
He added that the legislation “keeps the current tax lien process intact; it ensures counties are promptly paid the property taxes they are due, tax lien investors collect the interest and penalties they are due, and homeowners’ equity is protected from confiscation.”

https://www.thecentersquare.com/arizona/arizona-proposal-seeks-to-curb-home-equity-theft/article_4f4ef2a8-5cb5-11ea-b012-e32207488f96.html

Arizona proposal seeks to curb home equity theft

Arizona proposal seeks to curb home equity theft

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