By Howard Fischer
Capitol Media Services/Arizona Daily Sun
Housing advocates asked the Arizona Court of Appeals Friday to overturn a lower court ruling allowing the Legislature to take $50 million from the state’s share of a nationwide mortgage settlement.
Attorney Tim Hogan said Maricopa County Superior Court Judge Mark Brain erred earlier this month when he said there is nothing illegal about the move. He wants the appellate judges to not only overrule Brain but also do it quickly: Absent a court order the funds will be transferred at the end of December.
“Once the money’s transferred into the general fund, it’s gone,” he said.
“These homeowners need the money now,” Hogan continued. “And even assuming we could get it back through a regular appeal, it would be several years from now.”
The legal dispute stems from an agreement by five major lenders earlier this year to settle allegations of mortgage fraud. The total settlement is $26 billion; Arizona’s share is about $1.6 billion.
The biggest chunk of Arizona’s share of the settlement — $1.3 billion — is earmarked to directly help those who are “underwater” with their mortgages, owing more than the property is worth.
