I recently posted about a foreclosure that had been thoroughly trashed before the owners moved out.  I thought I’d update that trashing a mortgaged house or removing property (i.e. cabinets, appliances, etc.) is a CLASS 5 Felony (see the Arizona Revised Statute below).  Apparently several banks (M & I specifically) are getting wise to their legal rights and going after former homeowners.  

The appliances that are customary for the homeowner to take include ONLY the washer, dryer and refrigerator.  Removing the stove (or toilets…I’ve seen it!) prevents the house from being eligible for most financing options which dirctly impacts the ability for the house to be sold again and increases the banks damages.  

If you know of anyone stripping houses you might want to share this information.  

Arizona Revised Statute 44-1219. Sale, removal or concealment of encumbered property; classification

A. It is unlawful for a person who has mortgaged personal property to another, or who has possession of personal property under a contract of sale whereby the vendor retains title, to:

1. During the existence of the mortgage or contract, and without first obtaining the written consent of the mortgagee or vendor or their assignees, sell, transfer or in any manner encumber such property without first fully advising the person to whom the sale, transfer or encumbrance is to be made, of the facts of the prior mortgage or contract of sale.

2. Conceal, take, drive or otherwise dispose of or destroy any of the encumbered property contrary to the provisions of the mortgage or contract.

3. Remove the property or any part thereof from the county where the property was located when the contract or mortgage was made, if the property is other than an automobile, and if an automobile, to remove the automobile from the state.

B. A person who violates any provisions of this section is guilty of a class 5 felony.

C. In addition to the punishment prescribed in subsection B, the court shall impose a penalty equal to the amount of any expense incurred by the sheriff in out-of-state travel, which has been reimbursed by the board of supervisors as provided by section 11-444. Upon payment of the penalty such sum shall be transmitted to the board of supervisors. 

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