HB 2739 Summary

• Establishes a mandatory foreclosure mediation program in the Arizona Supreme Court for nonjudicial foreclosures of deeds of trust on owner-occupied residential property.

• Requires mediation to address foreclosure issues including reinstatement, loan modification, and debt restructuring using Federal Deposit Insurance Corporation loan modification calculations and forms.

• Mandates participation by the beneficiary (may participate by phone), trustor, trustor's counsel, and trustee (may participate by phone), with beneficiary representative requiring settlement authority.

• Stays foreclosure proceedings during mediation; prohibits further foreclosure action until the court certifies and records notice that mediation requirements are satisfied; freezes all foreclosure-related fees and costs during mediation.

• Program terminates on July 1, 2020; applies only to properties where notice of sale has not been recorded before the effective date.