By Russ Wiles | Arizona Republic
Homeowners who refinance their mortgages could lose protections from debt collectors and other creditors under a bill that’s quietly making its way through the Arizona Legislature.
Critics say that and other provisions could harm homeowners struggling to make ends meet, and the legislation might force debtors to seek additional legal help on old bankruptcy cases they thought were closed.
But House Bill 2617 also could help some consumers, including those in good financial shape, by increasing the amount of creditor protection that all Arizona homeowners receive automatically.
Arizonans currently are shielded from creditors on the first $150,000 of equity in homes they own and live in, thanks to a special provision in state law that’s designed to keep people from being thrown out on the streets. This blanket protection of a person’s home investment would rise to $250,000 if the bill passes.