Summary: AZ HB 2601
http://www.azleg.gov/DocumentsForBill.asp?Bill_Number=HB2601
Would be EFFECTIVE
ONLY UNTIL
Synopsis: Once an owner is notified of sale he may submit an affidavit for a temporary (60day) stay of the sale and must be provided an opportunity to negotiate revised loan terms with lender.
Definitions:
Owner: undefined,
but see affidavit requirements below
Trustee" means an individual, association or corporation qualified
pursuant to section 33-803, or the successor in interest thereto, to whom trust
property is conveyed by trust deed. The trustee's obligations to the trustor,
beneficiary and other persons are as specified in this chapter, together with
any other obligations specified in the trust deed.
Lender: undefined
Outline:
· Owner duties
o Affidavit must include:
· Signature of at least one owner, along with telephone number, mailing address, and other contact information
· The following statements:
o The owner is a natural person
o The loan on the property was for personal, family, or household purposes
o The loan is secured by a first or second deed of trust or a home equity loan on real property that is improved with one to four residential units.
o The foreclosed property is the principal residence of the owner
o The owner owns no other real property
o The
property is located in
· Must be sworn to and notarized by at least one owner
· Mailed to the trustee address provided in the notice of sale
o Must be provided an opportunity to negotiate with lender for revised loan terms. May accept the assistance of a nonprofit or government representative
o Must continue making payments during 60-day period (Must negotiate “fair and equitable” payments with lender)
· Trustee duties:
o Upon receipt of apparently complete affidavit, trustee must postpone sale for 60 days
o Must
assist lender and owner in negotiating revised loan terms during 60 day period
· Lender duties:
o Must provide owner with the opportunity to negotiate revised loan terms
o Must agree to “fair and equitable” payments for owner to make during 60 period