AZ HB2173

Amends Arizona law governing deficiency judgments on mortgages and deeds of trust by limiting recovery when the original lender assigns the mortgage or deed of trust to another party.

Restricts deficiency judgments against borrowers when an assignee (not the original mortgagee) forecloses, limiting recovery to the amount the assignee paid for the mortgage assignment rather than the full deficiency.

Applies the same limitation to trust deeds, capping deficiency recovery by assignees at what they paid for the deed of trust assignment, less the fair market value or sale price of the property (whichever is higher).

Maintains existing protections for residential properties (2.5 acres or less used for single or two-family dwellings) which remain prohibited from deficiency judgments after trustee sales.