Controversial Arizona Foreclosure Law to be Repealed with Approved State Budget

The controversial foreclosure bill written by State Senator Steve Pierce and passed into law by Governor Jan Brewer earlier this month is set to be repealed -- if the budget ever gets approved, that is.

According to Arizona Association of Realtors spokesman Tom Farley, the repeal of Senate Bill 1271 -- which was intended to protect small banks but would have caused harm to thousands of homeowners facing foreclosure-- has been written into both the Senate and House budgets. Once the final state budget is approved, the law will revert back to the original version.

Legislators "woke up" to the problems with the bill when they received dozens of phone calls and emails from worried homeowners, Farley said.

The next step, according to Farley, is to sit down with Pierce and bankers to write a new, more well-thought-out law.