AZ HB2326

Amends Arizona law to require beneficiaries or trustees to provide written notice to borrowers in default before exercising power of sale on certain owner-occupied residential properties.

Gives borrowers the right to occupy foreclosed property as a renter for at least one year if they notify the lender within 30 days, make monthly rental payments determined by justice court, and maintain the property as their primary residence.

Requires justice courts to determine fair market rental value through an appointed licensed residential real estate appraiser when a borrower exercises the right to rent option.

Applies only to single or two-family dwellings (including condominiums and planned community units) that were the borrower's principal residence for at least two years before default and have a purchase price below median for the area.

Applies exclusively to deeds of trust executed before July 1, 2007.