AZ HB2642

Establishes a mandatory foreclosure mediation program in the administrative office of the courts for nonjudicial foreclosures on owner-occupied residential property, overseen by the Arizona Supreme Court.

Requires mediation to address reinstatement, loan modification, and debt restructuring using Federal Deposit Insurance Corporation loan modification program calculations and forms, with communications held confidential.

Mandates mediation participation by beneficiary (allowed by telephone), trustor with counsel, and trustee (allowed by telephone), with beneficiary representative required to have settlement authority.

Stays all foreclosure action during mediation process; foreclosure can only resume after court certifies mediation requirements were satisfied, with all fees and costs frozen from mediation date until notice of satisfaction is recorded.

Program terminates on July 1, 2021 and applies only to properties where notice of sale has not been recorded before the effective date; applies only to owner-occupied residential property.