Ariz. lawmakers hit reset button on loan lawsuits

PHOENIX - Arizona legislators responded quickly last June when bankers complained that investor-builders were abusing a post-foreclosure protection intended for homeowners. Within 23 days, a bill to give lenders more leeway to sue former owners of foreclosed properties had been proposed, considered and approved by the Legislature. But after hearing complaints about unintended consequences and a lawsuit, lawmakers beat a retreat: They repealed the changes they'd made to the law that generally bars lenders from suing homeowners for the difference between what is owed on a house and what the bank can sell it for. On Monday, Gov. Jan Brewer signed the bill, which was approved during a special session mostly devoted to the state's budget problems. The post-foreclosure protections formerly enjoyed by Arizonans are again in place, at least for now.

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