HB 2763 Summary

• Adds Article 4 to Arizona Title 33, Chapter 6, establishing comprehensive regulations for "home equity purchasers" (entities acquiring foreclosed or defaulted residential properties) and "foreclosure consultants" to prevent predatory practices against homeowners in financial distress.

• Requires all covered contracts between equity purchasers and homeowners to be in writing with specific disclosures in at least 12-point boldface type, include a 5-business-day cancellation right, and contain detailed terms of payment, services, and reconveyance arrangements.

• Prohibits equity purchasers from accepting deeds, recording documents, or paying consideration during the 5-business-day cancellation period and from making false statements about property value, foreclosure timing, or seller rights.

• Establishes that transactions reserving the homeowner's right to repurchase the property are presumed to be mortgage loans rather than absolute sales, and requires equity purchasers to verify the homeowner's ability to repay and ensure fair terms in reconveyance arrangements.

• Creates civil liability for violations (actual damages plus attorney fees, potentially trebled), criminal penalties (Class 5 felony for fraudulent violations, Class 1 misdemeanor for knowing violations), and authorizes the Attorney General to seek injunctions and civil penalties up to $25,000 per violation.