HB 2641 Summary

• Adds Article 4 to Arizona Revised Statutes Title 33, Chapter 6, establishing comprehensive regulations for home equity purchasers and mortgage consultants dealing with properties in foreclosure or default.

• Requires equity purchasers to provide written contracts in 12-point boldface type with specific disclosures including consideration amount, payment terms, reconveyance arrangements, and a cancellation notice; equity sellers have five business days to cancel without penalty.

• Prohibits equity purchasers from accepting deed execution, recording documents, transferring property interests, or paying consideration during the five-business-day cancellation period, and bans false/misleading statements about property value, proceeds, foreclosure timing, and contract terms.

• Establishes that reconveyance arrangements (where equity purchasers obtain title with promise to reconvey) require verification of seller's ability to repay, completion of closing with independent attorney/escrow agent, and either reconveyance of title or payment of at least 82% of fair market value within 120 days.

• Creates civil remedies allowing equity sellers to recover actual damages plus attorney fees and costs, with potential treble damages, and criminalizes violations as Class 1 misdemeanor (or Class 5 felony if fraudulent or repeat offense within five years); prohibits foreclosure consultants except for licensed professionals and certain exempted entities.