Bankers file lawsuit over repeal of AZ foreclosure law

The Arizona Bankers Assocation has filed a lawsuit to overturn legislation that repealed a controversial new state foreclosure law.
Earlier this week, the Bankers Association field the suit in the Arizona Supreme Court alleging the legislation is unconstitutional. The fight centers around SB 1271, which was passed in early July and allowed lenders to go after the assets of many homeowners in foreclosure. The bill made it legal for lenders to seek the difference between what a borrower owed and how much they were able to recoup from reselling the forecloure home.
Many in the real estate industry fought to repeal the …

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