AZ HB2584

Prohibits mortgage lenders from pursuing deficiency judgments against borrowers for short sales on residential properties of 2.5 acres or less limited to single-family or two-family dwellings.

Applies to first mortgage holders and junior lien holders who have agreed to the short sale, as well as their successors and assigns.

Extends the same deficiency prohibition to deeds of trust used to finance residential properties meeting the same size and use requirements.

Explicitly excludes foreclosure sales and trustee's sales from the deficiency prohibition, applying only to voluntary short sale transactions.

Takes effect for all contracts for sale executed after the bill's effective date.