AZ HB2634

Establishes a foreclosure prevention program for first liens on owner-occupied residential properties requiring beneficiaries to provide notice of default with information about loan modification options, payment history, and deed of trust documentation.

Requires beneficiaries to acknowledge receipt of foreclosure prevention assistance applications within three business days, notify applicants of document deficiencies within five business days, and establish a single point of contact for each applicant.

Prohibits beneficiaries from assessing late fees, collecting penalties, or recording notices of trustee's sale while a borrower's application for loan modification or foreclosure prevention assistance is pending.

Allows foreclosure to proceed only after beneficiary offers loan modification (with 15-day waiting period if declined), denies assistance (with 30-day waiting period plus appeal process), or borrower defaults on executed modification agreement.

Provides enforcement mechanisms including injunctive relief for borrowers before trustee's deed is recorded, treble damages or $50,000 for intentional violations after foreclosure, and authorizes Attorney General enforcement actions.