Posted by AngelinaAZ on 6/17/06 12:13am
Msg #126447

Abandonment of Homestead... ?????????

I understand 'why' a lender would want a borrower to sign this document... but under what circumstances would Countrywide actually REQUIRE a borrower to sign this?

The document is called an Abandonment of Homestead and it states that the borrower hereby abandons, vacates and revokes the Declaration of Homestead on subject property.

Arizona homeowners are supposed to have a mandatory homestead exemption of $100,000.

The borrowers were not told about it and did not want to sign it but are afraid if they don't it will hold up their loan. I told them to talk to their LO and seek legal counsel but I am very curious about this. I have never seen it before.

Reply by John_NorCal on 6/17/06 12:30am
Msg #126458

This used to be a common practice here in CA in the 70's. Back then we would tell people that they could always put it back on after the close of escrow. I haven't heard of any lenders requiring an abandonment for a few years. Can AZ owners do the same?

Reply by Sher_AZ on 6/17/06 12:49am
Msg #126469

Hi John...No you didn't "hiccup" Angelina probably had more signings for completion & hasn't had time to get back to check for responses.. It's still before midnight here in AZ and generally fridays are like EOM every week

Reply by John_NorCal on 6/17/06 12:30am
Msg #126459

This used to be a common practice here in CA in the 70's. Back then we would tell people that they could always put it back on after the close of escrow. I haven't heard of any lenders requiring an abandonment for a few years. Can AZ owners do the same?

Reply by John_NorCal on 6/17/06 12:31am
Msg #126461

I guess I must have stuttered again...... n/m

Reply by John_NorCal on 6/17/06 12:31am
Msg #126462

I guess I must have stuttered again...... n/m

Reply by Sher_AZ on 6/17/06 1:01am
Msg #126472

I don't know John. It's an interesting subject and one I'd like to know the answer to also. I am going to "send" this inquiry to Jennifer Rundall (AZ Notary Network) to see if she knows. I'll let you know if she answers tonight.

Reply by AngelinaAZ on 6/17/06 5:02am
Msg #126481

John... from the look of the document itself...

I think this one must be a relic of the 60's... worst copy I've ever seen!

Sorry it took me so long to reply... I typed my post while printing docs and ran back out the door.

I have never seen this thing before. Honestly, I've never even heard of it. I'll have to call the County on Monday and see if this is something you can take off and put on at will. When you used to put it back on in CA, did you have to have Lender approval or was it just borrower preference after the closing was completed?

Reply by Sher_AZ on 6/17/06 12:47am
Msg #126468

Angelina, I have not seen one of these come up either. Maybe Jennifer Rundall can help answer re: how applies in AZ. Send her an e-mail & she will respond. She sent you her e-mail address few posts back but if you don't find it, you can contact her at http://www.azmobilenotarysigner.com/ She's been a good resource for me in the past (and present). Good luck!

Reply by AngelinaAZ on 6/17/06 5:04am
Msg #126482

Thanks Sher... I'll let you know what we come up with. n/m

Reply by BarbaraL_CA on 6/17/06 2:27am
Msg #126474

The following was taken from the Yavapai County Recorder's Office FAQ's on their website. Their website is: http://www.co.yavapai.az.us/departments/Rec/RecFAQ.asp
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A homestead exemption protects you home against some claims made against you by certain creditors. Prior to July of 1994, this protection was not automatic. In July of 1994, a new law went into effect that generally dispensed with that requirement and made them automatic. An individual or married couple is entitled to only one homestead exemption. It applies to your home, condominium, mobile home and the land on which the mobile home sits. It is limited to $100,000 equity in your home and does not apply to the obligations of mortgages, deed of trust, tax liens and valid liens for labor or materials supplied to the property. It is important to understand Homestead exemptions are automatic, but for those people that own more than one home, the law permits a creditor to require a debtor to designate which home to protect. It is also important to understand that although homestead exemptions are automatic they are not absolute. This office suggests that you contact an attorney for question regarding homesteads, or your questions may be answered in ARS 33-1101, 33-1102, 33-1103, 33-1104 or 33-1105. This office is not authorized to give legal advice. Information contained in this area of homesteads was taken from a June 29, 1994 article from the Arizona Republic. If you would like to obtain a copy of the article, please contact this office at 928-771-3244 (Prescott) or
928-639-5807 (Cottonwood).

Reply by AngelinaAZ on 6/17/06 5:17am
Msg #126483

Good info... this was a little different from the stuff I pulled up. It seems that it would make sense then if this was a second home... but if the Schedule of RE owned is correct, it's their only home. Nothing makes a lot of sense as to why they would want it in this situation.

If it doesn't have anything to do with mortgage or deed obligations... I'm even more confused. Why would the Lender want this?

I'm wondering if this is something used to clear a title report on some previous property from a long time ago... so that the Homestead Exemption can then be used for this property??? Does that make any sense to anyone or am I just tired and imagining scenarios?

Reply by Sher_AZ on 6/17/06 4:46pm
Msg #126566

Angelina it does sound like a "relic" Jennifer sent me an website address to check it out. It is as http://www.uslegalforms.com/homestead-exemption-laws.htm. You may see if there's anything there that would help in regards to AZ law.