Arizona House Democrats

FORECLOSURE RELIEF
FOR A STRONGER ARIZONA
HB 2601 The Homeowner Relief Act would grant temporary (60 day) relief to homeowners, who
foreclosures; are in foreclosure and in danger of losing their home.
limitation; 4 The bill requires the owner to submit a signed, sworn and notarized affidavit to the
affidavit trustee in order to postpone a sale.
4 During the postponement period, the owner is granted the opportunity to negotiate
Rep. Daniel a revised payment of the loan.
Patterson 4 Additionally, it encourages the lender and owner to make efforts to arrive at revised
loan terms.
4 If the owner makes timely monthly payments under this scenario, the sale may be
postponed for up to one year; otherwise the trustee can reschedule the sale.
4 The act expires June 30, 2012.
4 Other states have introduced similar bills

HB 2522 The Foreclosure Fraud Rescue Act protects homeowners who are facing foreclosure from
foreclosure scams and fraud. A foreclosure rescue is intended to delay or prevent foreclosure proceed-
rescue ings for the homeowner while allowing them to remain in possession of their property.
There are two basic types of foreclosure rescue scams:
Rep. Rae Waters
1) A rescuer provides financial assistance to the homeowner by paying off overdue mort-
gage payments in return for title to the property. The homeowner is allowed to continue
living in the home by paying rent to the rescuer until the home can be bought back. If the
homeowner falls behind on payments again, the rescuer may then evict the homeowner
because the rescuer has the title to the house. The homeowner remains responsible for the
original mortgage, no longer has ownership interest in the house and has no place to live.
Hundreds of Arizona homeowners have lost their homes and equity through scams that
intentionally make rental prices so high that homeowners can rarely afford them.
2) The rescuer promises a homeowner to act as a foreclosure consultant and negotiate
a modification to a mortgage loan for a high fee. These services are normally available
for free or at a much lower cost from non-profit housing counselors. The rescuer is only
making the offer for the money and rarely helps the homeowner.
This bill:
4 Defines a foreclosure rescue transaction as a mortgage loan so that it is subject to the
same foreclosure process as a mortgage loan.
4 The scam artist would have to go through the foreclosure process in order to evict the
homeowner.
4 Defines the exchange of a title to property as security for an agreement as Equitable
Mortgage, which is also subject to the foreclosure process.
4 Defines an Unfair Foreclosure Rescue Transaction and identifies fraudulent practices.
4 Outlines the ability of the homeowner to void an Equitable Mortgage and regain title to
the property.
4 Allows the homeowner to bring action in court, to regain money the homeowner may
have paid in the agreement, and to recover damages.
4 Prohibits persons from acting as foreclosure consultants unless they fall into one of the
existing categories of licensed pros or nonprofit orgs that provide help to homeowners.
 HB 2464 The Renter Relief from Foreclosure Act requires a landlord to allow a tenant at least 30
tenant notice; days to vacate a foreclosed property.
foreclosures
4 The bill additionally requires a landlord to notify the tenant in writing at least 60
days before a sale.
Rep. Barbara
4 It states that a completed foreclosure terminates the tenant’s obligations under any
McGuire
lease agreement and the tenant is not liable for any rent or utilities.
4 If a landlord fails to provide adequate notice, the tenant may recover one month’s
rent plus the security deposit.

HB 2510 The Arizona Home Equity Theft Prevention Act requires “equity purchasers” or “foreclo-
home equity sure consultants” to be licensed. Unlicensed, unscrupulous “rescuers” are promising to
purchasers; help homeowners in default, but end up fraudulently deceiving them; either stripping
licensure; equity from their homes or causing them to lose their homes altogether.
regulation
4 It requires a homeowner’s written permission before property is assigned and pro-
hibits representations that tend to mislead.
Rep. Ben Miranda
4 Additionally, it requires a reconveyance agreement to be treated as a mortgage loan,
provides criteria for written disclosures, specifies acts from which equity purchasers
are prohibited and provides rescission requirements and penalties.
4 The ultimate goal is to provide Arizona homeowners with the necessary informa-
tion to make an informed decision involving the sale or transfer of their home, and to
preserve home ownership for financially distressed and vulnerable homeowners.

HB 2545 The Home Loan Refinancing Act encourages parties involved in foreclosure proceedings
foreclosures; to restructure loans in order to prevent foreclosure and delays a sale for up to one year
terms; notice if the beneficiary (the person to whom money is owed – lender) fails to negotiate in good
faith with the trustor (borrower).
Rep. Robert Meza
4 Specifies that the power of sale for owner occupied residential property can only be
exercised under certain conditions.
4 If the beneficiary fails to negotiate in good faith or comply with certain disclosure
and meeting requirements, and the trustor meets payment obligations, then the sale is
postponed for at least a year from the initial notice of sale.
4 Prescribes a plain language disclosure describing the trustor’s rights in the notice of
sale, and requires the notice to also include the name, address, telephone number and
electronic mailing address of the beneficiary and the names and addresses of housing
counselors who can provide assistance to and attend negotiations with the beneficiary
of an owner occupied residential trust property.
4 Requires the local representative of the beneficiary to conduct a meeting with the
beneficiary, the trustor, and at his/her option, a housing counselor. The purpose of the
meeting is to review the trustor’s income status and to modify the terms of the promis-
sory note or deed of trust to more favorably meet the trustor’s ability to pay.

HCM 2007 Encourages the U.S. Congress to consider and enact legislation enhancing the ability of
self-employed self-employed individuals to refinance their loans and consider developing alternative
individuals; lending standards for small businesses.
mortgages

Rep. Steve Farley

For more information, call Sarah Muench, 602.926.3561