Bankers challenge constitutionality of Ariz. budget’s repeal of controversial real estate law

Suit challenges constitutionality of Arizona law

PHOENIX — The Arizona Supreme Court is being asked to overturn budget legislation that repeals a controversial new state law on legal protections for homeowners after foreclosures.

The law being repealed would impose new eligibility requirements for protections against lawsuits by lenders to recover the balance of what is still owed after foreclosure sales.

A lawsuit filed Tuesday by the Arizona Bankers Association contends the repeal legislation is unconstitutional on several grounds. Those claims include that the issue wasn’t included in Gov. Jan Brewer’s special session call for action on budget and tax matters.

The real estate industry sought the repeal, arguing that the issue hadn’t been adequately aired by legislators.