Change in Arizona Trustee Sale Law You Need to Know

by Evette Cecena, the Queen of HUD on July 18, 2010

The new Arizona Foreclosure law, House Bill 2626, applies to lenders using the trustee sale to recover the house given as collateral for the loan.  The law takes effect on July 30, 2010.  Lenders holding first lien deeds of trust recorded from January 1, 2003 to December 31, 2008 will be required to attempt to contact borrowers to explore options that avoid foreclosure.  This new requirement does not apply to:

  1. loans made, purchased, or serviced by a state or local housing agencies, such as FNMA or Federal Home Loan Mortgage Corporation, or that are collateral for their securities
  2. lenders who made 5 or less loans in a calendar year
  3. lenders who have complied with the U.S. Department of Treasury Home Modification Program

House Bill 2626 does not require loan servicers to provide modifications to borrowers who

  1. are not willing or able to pay modified payments
  2. have surrendered the property
  3. filed bankruptcy; or
  4. vacated or abandoned the property

If you receive the new notice from your lender investigate the options afforded to you to avoid foreclosure.  This Bill may provide you with a way to save your home from foreclosure.

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