By Melanie Yamaguchi
Cronkite News Service
If you’d like to discuss real estate matters, contact Rose Law Group Founder Jordan Rose, jrose@roselawgroup.com
Not requiring mortgage lenders to take foreclosure cases to court is helping Arizona recover from the housing crisis faster than states that do, according to an Arizona State University researcher.
In a paper, Andra Ghent, an assistant professor specializing in real estate at the W.P. Carey School of Business, examines differences between states that require court hearings on foreclosures, referred to as judicial states, and those that don’t. Arizona allows both judicial and non-judicial procedures.
“The overall time cost is really a big issue and the poor condition the properties are going to be in in these judicial states,” Ghent said. “For these judicial states, you have to start a court proceeding, so you actually have to go to a judge and that depends, of course, on the judge’s availability.”
Ghent said that in general states like Arizona that don’t require judicial involvement have been able to get through the bulk of foreclosures caused by the housing crisis. States that require judicial approval of foreclosures, like Florida and New York, face backlogs and shortages of judges available to hear cases, she said.
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