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Law Off of D.L. Drain P.A., Arizona Bankruptcy Lawyer | "Helping You Get Your Life Back on Track"
Law Off of D.L. Drain P.A., Arizona Bankruptcy Lawyer | "Helping You Get Your Life Back on Track"

Diane L. Drain | Arizona Bankruptcy Lawyer

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Real Estate FAQsSite Producer2022-08-02T13:32:37-07:00
Real Estate FAQs

Real Estate Questions

Real Estate FAQs

On this page you will find answers to frequently asked questions about real estate topics. I recommend taking the time to go through each of the topics below to learn more about bankruptcy in real estate.

Arizona Real Estate LawDiane Drain2022-07-30T15:31:49-07:00

Arizona real estate law is the body of constitutional, statutory, and administrative rules that govern landlords, tenants, investors, and home buyers in the acquisition, use, and transfer of real estate.

Arizona Real Estate Law 

Who Licenses Title Companies & Loan Servicers?Diane Drain2022-07-30T17:24:31-07:00

The Arizona DRE (ADRE) is the Arizona Department of Real Estate. It is the government entity in Arizona that approves and monitors pre-licensing courses, real estate testing, and continuing education (CE).  For more information click on the link below to visit the ADRE website.

Link to the Arizona Department of Real Estate

Who Licenses Realtors & Brokers?Diane Drain2022-07-30T17:24:41-07:00

The Arizona DRE (ADRE) is the Arizona Department of Real Estate. It is the government entity in Arizona that approves and monitors pre-licensing courses, real estate testing, and continuing education (CE).  For more information click on the link below to visit the ADRE website.

Link to the Arizona Department of Real Estate

When buying a home – who normally pays what?Diane Drain2022-07-30T17:24:52-07:00

Once the purchase contract is fully accepted and escrow has been opened, the buyers and sellers next concern generally are “what are my closing costs going to be?” To help answer this question for your clients, listed below are the typical or general costs that are associated with a residential real estate transaction. To read more about this topic, click on the link below.

When Buying a house in Arizona – who normally pays what?

What are Beneficiary Deeds (Arizona Specific)Diane Drain2022-07-30T17:25:13-07:00

A beneficiary deed, also known as a transfer on death (TOD) deed, is a form of deed that can be used to transfer ownership of real estate outside of probate following the grantor’s death. A beneficiary deed can be used instead of a will and testament to transfer real estate to a beneficiary upon the owner’s death.  To learn more about potential issues & problems with a beneficiary deed, click on the link below for more information.

Beneficiary Deeds – Potential Issues & Problems

Is it possible for a creditor to force me to sell my home?Diane Drain2022-07-30T17:25:32-07:00

January 1, 2022 – the Arizona legislature decided to change more than 100 years of protection for homeowners.  It is going to take many years to understand what they did and how it effects all homeowners.  Bottom line – creditors with recorded judgments can now pursue equity in a homestead property, with specific limitations.  See ARS Section 33-964 for the latest version of the law.

See also, ARS 33-1105. Sale by judgment creditor of property subject to homestead exemption: A judgment creditor other than a mortgagee or beneficiary under a trust deed may elect to sell by judicial sale as specified in title 12 the property in which the judgment debtor has a homestead under section 33-1101, subsection A, provided that the judgment debtor’s interest in the property shall exceed the sum of the judgment debtor’s homestead plus the amount of any consensual liens on the property having priority to the judgment. A bid shall not be accepted by the officer in charge of a sale under this section which does not exceed the amount of the judgment debtor’s homestead plus the amount of any consensual liens on the property having a priority to the judgment plus the costs of the sale allowable under title 12. After receipt of a sufficient bid, the officer shall sell the property. From the proceeds, the officer shall first pay the amount of the homestead to the judgment debtor plus the amount of any consensual liens on the property having a priority to the judgment and then pay the costs of the sale. The remaining proceeds shall be applied in accordance with the provisions of ARS section 12-1562, subsection A. If the sale does not occur, either because of voluntary abandonment by the judgment creditor or because no sufficient bid is made, the judgment creditor may not charge any costs or attorney fees incurred in connection with the sale against the judgment debtor by addition to the judgment or otherwise.

See also: Evans v. Young, 135 Ariz. 447, 661 P.2d 1148 (Ariz.App.1983) (held that foreclosure is available to a judgment creditor who wishes to subject judgment debtor’s homestead property to execution and forced sale, but judgment creditor must first satisfy statutory appraisal procedures, and value of homestead property must exceed value of homestead exception over and above all liens and encumbrances).

What are “Real Property Tax Liens”?Diane Drain2022-08-09T01:36:29-07:00

When people fail to pay real property taxes on their homes, vacant land, and/or commercial buildings, Arizona law allows county governments to lien the real property for the unpaid taxes, effectively putting a mortgage on the property to pay the unpaid taxes. If the taxes are not paid within three years, the counties will sell the tax lien to investors at auction.

Arizona specifically, allows investors to purchase unpaid real property taxes from counties in the form of tax lien certificates on real property as an investment. Each year, counties hold auctions to sell unpaid property tax liens. Maricopa County, for example, holds its annual online auction in February. Some counties may have unsold tax lien certificates that they sell in addition to the auction.

An investor bids on the interest rate on the tax lien in the auction. According to Arizona law, an investor can earn up to 16 percent interest per year on a tax lien certificate. The bidder with the lowest interest rate bid wins the auction for each lien. If you are the successful bidder, you must pay the back taxes and obtain a tax lien certificate.

To redeem the tax lien certificate, the property owner must pay the taxes plus the 16 percent interest. The investor receives his investment plus the interest rate he bid at the auction, and the county receives the balance interest. If the property owner does not redeem the tax lien certificate within three years after purchase, the investor has the right to foreclose on the tax lien certificate by initiating a judicial foreclosure complaint.

More resources available below:

Tax Issues: Short Sales & Trustee SalesDiane Drain2022-07-30T17:29:32-07:00

Property which is pledged as collateral on a debt will sometimes be surrendered to the creditor if the debtor is unable to make payments. To read more on this topic, click on the link below for more information.

Tax Issues: Short Sales & Trustee Sales

Deficiency FlowchartDiane Drain2022-07-30T17:27:25-07:00

The following flowchart outlines the Arizona Anti-Deficiency Process. Click on the link below to download the flowchart.

Arizona Anti-Deficiency Flow Chart

Real Estate Questions
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