Nogales international., 1933-08-19
NUMEROUS PERSONS SEND In
APPLICATIONS FORLOANS ON
HOMES UNDER FEDERAL LAW
At Least S5,OO000O To Be Released In Arizona
Through Operation Of New Home Law, Says
Roy Wayland, State Manager

Cruz county sent in applications
this week to the federal Home Own
ers Loan Corporation at Phoenix
for loans.
The corporation began function
ing in Arizona Tuesday. Santa Cruz
representatives are Frank j. Duffy,
legal counsel; j. NJ Karam and
Craig Pottinger, appraisers. Apph-
cation blanks may be obtained from
either of these three men.
At least $5.OOo,O0O will be released
in Arizona through operation of the
new home loan law, w. Roy Way
land of Phoenix, state manager,
forecast this week.
This amount may So as high as
$7,000,000, he added.
The Arizona branch offices, open
ed at 300 Professional building,
Phoenix, and all loans will be ham
died through those offices.
Relief For Home Owners
Each applicant should obtain the
necessary application blanks and
papers, obtain the mortgagee's con-
sent, and make sure all are proper
ly filled out and signed before turn
ing them in to the offices at Phoe-
nix, Mr.. Wayland said.
The new bureau is expected to
afford considerable relief for dis
tressed home owners and mortgage
holders.
Mr.. Wayland explained that the
purpose of the Home Owners Loan
corporation is to aid distressed
home owners and help mortgage
holders. The act creased a CORPORA
ton whose capital stock $2,OOO,00O,-
600 which was subscribed by the u.
S. treasury. 1t also authorizes a
bond issue of $4,000, 100000.
Mortgage Refinanced
The act Mr.. Wayland explained
further, extends the same principle
of relief to the home owners as has
already been extended to farmers
by thir particular relief agency.
In addition to this, relief has been
provided for the mortgage holder.
The act further provides that
taxes and assessments which can
not be relieved through the Gus
tomary borrowing channels may be
paid from corporation funds.
The home owners law empowers
the corporation to deal with home
owners who occupy their homes or
still hold them as homesteads al
though temporarily not occupying
them. The assessed value of such
property cannot exceed $40 900.
Homes will be eligible for loan ap-
plications even though they may be
used for other purposes such as
small businesses, small gardening
ETC., where both business and resi-
dcnce are combined in the same
home.
Small acreage also will be eli
gible with homes built thereon but
no home will be eligible that is
built fo- more than four families
Mortgages to be refinanced through
the corporation must have been re-
corded prior to Or on June 13, 1888
when the law became effective.
Property Values
Mr.. Wayland explained further
that the act authorizes the paying
off of mortgages to the present
mortgage holder by giving him cor
poration bonds in exchange for the
mortgage, the corporation then
taking over the mortgage. The in
terest on these bonds is guaranteed
by the United States government
at per cent for a period of 18
years.
The government, however, does
not guarantee the principal.
First and second mortgages. or
any other lien Or assessment against
the property may be refinanced by
the corporation providing it does
not exceed sc per cent Of the prop
erty value
Cash Leans Also
Home owners who have lost their
properties within the last two
years are also eligible for assist
ance, provided the present holder
of the property will accept bonds
for his equity.
The law also provides that in ad-