HB2765 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 9-499, Arizona Revised Statutes, is amended to read:

START_STATUTE9-499. Removal of rubbish, trash, weeds, filth, debris and dilapidated structures; removal by city; costs assessed; collection; priority of assessment; definitions

A. The governing body of a city or town, by ordinance, shall compel the owner, lessee or occupant of property or the beneficiary of a deed of trust as provided in subsection G of this section to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures which that constitute a hazard to public health and safety from buildings, grounds, lots, contiguous sidewalks, streets and alleys. An ordinance shall require:

1. Written notice to the owner, the owner's authorized agent or the owner's statutory agent and to the occupant or lessee. The notice shall be served either by personal service or by certified mail. If notice is served by certified mail, the notice shall be mailed to the last known address of the owner, the owner's authorized agent or the owner's statutory agent and to the address to which the tax bill for the property was last mailed. The notice shall be given not less than thirty days before the day set for compliance and shall include the legal description of the property and the cost of such removal to the city or town if the owner, occupant or lessee does not comply. The owner shall be given not less than thirty days to comply. The city or town may record the notice in the county recorder's office in the county in which the property is located. If the notice is recorded and compliance with the notice is subsequently satisfied, the city or town shall record a release of the notice.

2. Provisions for appeal to and a hearing by the governing body of the city or town or a board of citizens that is appointed by the governing body on both the notice and the assessments, unless the removal or abatement is ordered by a court.

3. That any person, firm or corporation that places any rubbish, trash, filth or debris upon any private or public property not owned or under the control of that person, firm or corporation is guilty of a class 1 misdemeanor or a civil violation and, in addition to any fine or penalty which may be imposed for a violation of any provision of this section, is liable for all costs which may be assessed pursuant to this section for removing, abating or enjoining the rubbish, trash, filth or debris.

B. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant, after notice as required by subsection A, paragraph 1 of this section does not remove such rubbish, trash, weeds, filth, debris or dilapidated structures and abate the condition which that constitutes a hazard to public health and safety, the city or town may remove, abate, enjoin or cause their removal.

C. The governing body of the city or town may prescribe by ordinance a procedure for the removal or abatement, and for making the actual cost of the removal or abatement, including the actual costs of any additional inspection and other incidental connected costs, an assessment upon the property from which the rubbish, trash, weeds or other accumulations are removed or abated.

D. The ordinance may provide that the cost of removal, abatement or injunction of such rubbish, trash, weeds, filth, debris or dilapidated structures from any lot or tract of land, and associated legal costs for abatement or injunctions, shall be assessed on the property from which the rubbish, trash, weeds, accumulations or dilapidated structures are removed, abated or enjoined. The city or town may record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment, the legal description of the property and the name of the city or town imposing the assessment. Any assessment recorded after July 15, 1996 is prior and superior to all other liens, obligations, mortgages or other encumbrances, except liens for general taxes. A sale of the property to satisfy an assessment obtained under the provisions of this section shall be made upon judgment of foreclosure and order of sale. A city or town shall have the right to bring an action to enforce the assessment in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the assessment by such action shall not affect its validity. The recorded assessment shall be prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings prior to the recording of the assessment.

E. Assessments that are imposed under subsection D of this section run against the property until paid and are due and payable in equal annual installments as follows:

1. Assessments of less than five hundred dollars shall be paid within one year after the assessment is recorded.

2. Assessments of five hundred dollars or more but less than one thousand dollars shall be paid within two years after the assessment is recorded.

3. Assessments of one thousand dollars or more but less than five thousand dollars shall be paid within three years after the assessment is recorded.

4. Assessments of five thousand dollars or more but less than ten thousand dollars shall be paid within six years after the assessment is recorded.

5. Assessments of ten thousand dollars or more shall be paid within ten years after the assessment is recorded.

F. An assessment that is past due accrues interest at the rate prescribed by section 44‑1201.

G. For any residential property for which the city or town receives a notice of pending foreclosure pursuant to section 33-809, the city or town on its own motion may inspect the exterior of the property and send notice pursuant to subsection a of this section to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the city or town, may proceed with a notice of sale pursuant to section 33-809. If the city or town does not send a notice pursuant to subsection a of this section to the beneficiary within ninety days after receiving the notice of pending foreclosure, the city or town waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to section 33-809.

G. H. A prior assessment for the purposes provided in this section shall not be a bar to a subsequent assessment or assessments for these purposes, and any number of assessments on the same lot or tract of land may be enforced in the same action.

H. I. This section applies to all cities and towns organized and operating under the general law of this state, and cities and towns organized and operating under a special act or charter.

I. J. For the purposes of this section:

1. "Property" includes buildings, grounds, lots and tracts of land.

2. "Structures" includes buildings, improvements and other structures that are constructed or placed on land. END_STATUTE

Sec. 2. Section 11-268, Arizona Revised Statutes, is amended to read:

START_STATUTE11-268. Removal of rubbish, trash, weeds, filth, debris and dilapidated buildings; violation; classification; removal by county; costs assessed; collection; priority of lien; definition

A. The board of supervisors, by ordinance, shall compel the owner, lessee or occupant, or the beneficiary of a deed of trust as provided in subsection F of this section, of buildings, grounds or lots located in the unincorporated areas of the county to remove rubbish, trash, weeds, filth, debris or dilapidated buildings which that constitute a hazard to public health and safety from buildings, grounds, lots, contiguous sidewalks, streets and alleys. Any such ordinance shall require and include:

1. Reasonable written notice to the owner, any lienholder, the occupant or the lessee. The notice shall be given not less than thirty days before the day set for compliance and shall include the estimated cost to the county for the removal if the owner, occupant or lessee does not comply. The notice shall be either personally served or mailed by certified mail to the owner, occupant or lessee at his last known address, or the address to which the tax bill for the property was last mailed. If the owner does not reside on the property, a duplicate notice shall also be sent to the owner at the owner's last known address.

2. Provisions for appeal to the board of supervisors on both the notice and the assessments.

3. That any person, firm or corporation that places any rubbish, trash, filth or debris upon any private or public property located in the unincorporated areas of the county not owned or under the control of the person, firm or corporation is guilty of a class 1 misdemeanor and, in addition to any fine which may be imposed for a violation of any provision of this section, is liable for all costs which may be assessed pursuant to this section for the removal of the rubbish, trash, filth or debris.

B. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant of the buildings, grounds or lots, after notice as required by subsection A, paragraph 1, does not remove the rubbish, trash, weeds, filth, debris or dilapidated buildings and abate the condition which that constitutes a hazard to public health and safety, the county may, at the expense of the owner, lessee or occupant, may remove, abate, enjoin or cause the removal of the rubbish, trash, weeds, filth, debris or dilapidated buildings.

C. The board of supervisors may prescribe by the ordinance a procedure for such removal or abatement and for making the actual cost of such removal or abatement, including the actual costs of any additional inspection and other incidental costs in connection with the removal or abatement, an assessment upon the lots and tracts of land from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed.

D. The ordinance may provide that the cost of removal, abatement or injunction of the rubbish, trash, weeds, filth, debris or dilapidated buildings from any lot or tract of land located in the unincorporated areas of the county and associated legal costs be assessed in the manner and form prescribed by ordinance of the county upon the property from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed, abated or enjoined. The county shall record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment and the legal description of the property. Any assessment recorded after the effective date of this amendment to this section August 6, 1999 is prior and superior to all other liens, obligations or other encumbrances, except liens for general taxes and prior recorded mortgages. A sale of the property to satisfy an assessment obtained under this section shall be made on judgment of foreclosure and order of sale. The county may bring an action to enforce the lien in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the lien by such action does not affect its validity. The recorded assessment is prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings before the recording of the assessment.

E. Assessments that are imposed under subsection D run against the property until they are paid and are due and payable in equal annual installments as follows:

1. Assessments of less than five hundred dollars shall be paid within one year after the assessment is recorded.

2. Assessments of five hundred dollars or more but less than one thousand dollars shall be paid within two years after the assessment is recorded.

3. Assessments of one thousand dollars or more but less than five thousand dollars shall be paid within three years after the assessment is recorded.

4. Assessments of five thousand dollars or more but less than ten thousand dollars shall be paid within six years after the assessment is recorded.

5. Assessments of ten thousand dollars or more shall be paid within ten years after the assessment is recorded.

F. For any residential property for which the county receives a notice of pending foreclosure pursuant to section 33-809, the county on its own motion may inspect the exterior of the property and send notice pursuant to subsection a of this section to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the county, may proceed with a notice of sale pursuant to section 33-809. If the county does not send a notice pursuant to subsection a of this section to the beneficiary within ninety days after receiving the notice of pending foreclosure, the county waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to section 33-809.

F. G. A prior assessment for the purposes provided in this section is not a bar to a subsequent assessment or assessments for such purposes, and any number of liens on the same lot or tract of land may be enforced in the same action.

G. H. Before the removal of a dilapidated building the board of supervisors shall consult with the state historic preservation officer to determine if the building is of historical value.

H. I. If a county removes a dilapidated building pursuant to this section, the county assessor shall adjust the valuation of the property on the property assessment tax rolls from the date of removal.

I. J. As used in this section, occupant does not include any corporation or association operating or maintaining rights-of-way for and on behalf of the United States government, either under contract or under federal law.

J. K. As used in For the purposes of this section, "dilapidated building" means any real property structure that is in such disrepair or is damaged to the extent that its strength or stability is substantially less than a new building or it is likely to burn or collapse and its condition endangers the life, health, safety or property of the public. END_STATUTE

Sec. 3. Section 33-807, Arizona Revised Statutes, is amended to read:

START_STATUTE33-807. Sale of trust property; power of trustee; foreclosure of trust deed

A. By virtue of his the trustee's position, a power of sale is conferred upon the trustee of a trust deed under which the trust property may be sold, in the manner provided in this chapter, after a breach or default in performance of the contract or contracts, for which the trust property is conveyed as security, or a breach or default of the trust deed. At the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property in which event chapter 6 of this title governs the proceedings. The beneficiary or trustee shall constitute the proper and complete party plaintiff in any action to foreclose a deed of trust. The power of sale may be exercised by the trustee without express provision therefor in the trust deed.

B. The trustee or beneficiary may file and maintain an action to foreclose a deed of trust at any time before the trust property has been sold under the power of sale. A sale of trust property under the power of sale shall not be held after an action to foreclose the deed of trust has been filed unless the foreclosure action has been dismissed.

C. The trustee or beneficiary may file an action for the appointment of a receiver according to sections 12‑1241 and 33‑702. The right to appointment of a receiver shall be independent of and may precede the exercise of any other right or remedy.

D. Except for owner‑occupied residential property, the power of sale of trust property conferred upon the trustee shall not be exercised before the ninety‑first day after the date of the recording of the notice of the sale. The sale shall not be set for a Saturday or legal holiday. The trustee may schedule more than one sale for the same date, time and place.

E. For owner‑occupied residential property, the power of sale of trust property conferred on the trustee shall not be exercised until after compliance with the conditions prescribed in this chapter. If the beneficiary fails to comply with this chapter, the power of sale conferred on the trustee shall not be exercised until at least one year after the date the notice of sale is recorded if the trustor continues to meet the payment conditions prescribed in section 33-808.01.

E. F. The trustee need only be joined as a party in legal actions pertaining to a breach of the trustee's obligation under this chapter or under the deed of trust. Any order of the court entered against the beneficiary is binding upon the trustee with respect to any actions that the trustee is authorized to take by the trust deed or by this chapter. If the trustee is joined as a party in any other action, the trustee is entitled to be immediately dismissed and to recover costs and reasonable attorney fees from the person joining the trustee. END_STATUTE

Sec. 4. Title 33, chapter 6.1, article 1, Arizona Revised Statutes, is amended by adding sections 33-807.01 and 33-807.02, to read:

START_STATUTE33-807.01. Limits on foreclosure; right to rent foreclosure property; applicability

A. a BENEFICIARY or trustee under a trust deed shall not exercise the power of sale until after the beneficiary has provided notice in substantially the FOLLOWING form to the trustor who is in default:

Official notice to trustor (borrower)

You are in default on your mortgage or deed of trust, and foreclosure may begin against your property. State law gives you the right to continue to occupy the property as a renter until (date) if you do all of the following:

1. Notify the lender-beneficiary before (date) that you intend to exercise your right to rent.

2. Make timely monthly rental payments in an amount determined by the justice of the peace court listed below.

3. Continue to use the property as your primary residence.

If you wish to occupy your property as a renter, you must give written notice to the lender-beneficiary and to the justice of the peace court precinct that has jurisdiction over your property for purposes of any landlord and tenant issue. That justice of the peace precinct is (name) , located at (address and telephone number) .

B. A beneficiary shall include on the notice the name, address and telephone number of the justice of the peace precinct that would have jurisdiction over the trust property for purposes of any residential landlord and tenant action, and shall specify the due date for the receipt of notice from the trustor, which shall be at least thirty days after the date the notice is mailed or posted, whichever occurs later. The notice shall be delivered by first class mail to the trustor at the trustor's mailing address and shall also be posted prominently on the front door of the trust property.

C. The beneficiary and the trustee may not exercise the power of sale on the trust property for at least one year after the date the trustor properly notifies the beneficiary that the trustor wishes to occupy the property as a renter, and a month-to-month periodic tenancy between the beneficiary and trustor exists if all of the following occur:

1. The trustor timely pays monthly rent in the amount determined by the justice court pursuant to section 33-807.02.

2. The trustor continues to occupy the premises as the trustor's principal residence.

3. The trustor does not engage in a material noncompliance with the tenant's obligations under chapter 10 of this title. The trustor may terminate the month-to-month tenancy by giving one month's notice to the beneficiary-landlord as provided in chapter 10 of this title.

D. On completion of the one-year period for which the trustor may be a renter of the trust property, the beneficiary or trustee may exercise the power of sale on the trust property as otherwise provided by law. If the beneficiary or trustee does not exercise the power of sale, the trustor may continue to rent as a month-to-month tenant.

E. This section and section 33-807.02 apply to real property that complies with all of the following:

1. The property is a single one-family or two-family dwelling, including a unit in a condominium as defined in chapter 9 of this title and a unit in a planned community as defined in chapter 16 of this title.

2. The property is used as the principal residence of the trustor for at least two years before default.

3. The deed of trust on the property secures a purchase price that is less than the median purchase price for residences that are located in the same metropolitan statistical area for that residence, or if not in a metropolitan statistical area, for this state. The median price shall be determined based on the generally accepted statistical measures used by the real estate industry for that area or for this state.

4. The deed of trust was executed before July 1, 2007.END_STATUTE

START_STATUTE33-807.02. Determination of rent; justice court proceeding; fair market value

A. On receipt of written notice from a trustor pursuant to section 33‑807.01 that the trustor wishes to occupy the trust property as a renter, the justice of the peace court for the precinct in which the trust property is located shall deem the notice the initiation of a justice court action for a determination of fair market rental value for the trust property, with the trustor as the plaintiff and the beneficiary as the defendant in the action. Written notice to the beneficiary as prescribed in section 33‑807.01 constitutes service of process for purposes of the action to determine fair market rental value, and a hearing shall be scheduled.

B. The justice court shall appoint a person who is licensed in this state as a residential real estate appraiser pursuant to title 32, chapter 36 to present evidence of the fair market rental value of the property at a hearing called for that purpose. On completion of the hearing, the court shall determine the fair market rental value, which constitutes the amount of monthly rent due from the trustor to the beneficiary under the month-to-month rental agreement prescribed by section 33-807.01.

C. No earlier than one year after the issuance of the court's fair market rental value determination, The beneficiary of the trust property or the trustor of the trust property may file a request for a redetermination of fair market rental to reflect changed market conditions. The court shall hold a hearing on fair market rental value if the party requesting the hearing pays the costs for the appraiser. END_STATUTE

Sec. 5. Section 33-808, Arizona Revised Statutes, is amended to read:

START_STATUTE33-808. Notice of trustee's sale

A. The trustee shall give written notice of the time and place of sale legally describing the trust property to be sold by each of the following methods:

1. Recording a notice in the office of the recorder of each county where the trust property is situated.

2. Giving notice as provided in section 33‑809 to the extent applicable.

3. Posting a copy of the notice of sale, at least twenty days before the date of sale in some conspicuous place on the trust property to be sold, if posting can be accomplished without a breach of the peace. If access to the trust property is denied because a common entrance to the property is restricted by a limited access gate or similar impediment, the property shall be posted by posting notice at that gate or impediment. Notice shall also be posted at one of the places provided for posting public notices at any building that serves as a location of the superior court in the county where the trust property is to be sold. Posting is deemed completed on the date the trust property is posted. The posting of notice at the superior court location is deemed a ministerial act.

4. Publication of the notice of sale in a newspaper of general circulation in each county in which the trust property to be sold is situated. The notice of sale shall be published at least once a week for four consecutive weeks. The last date of publication shall not be less than ten days prior to before the date of sale. Publication is deemed completed on the date of the first of the four publications of the notice of sale pursuant to this paragraph. For owner‑occupied residential trust property, the notice of sale shall be published in a newspaper of local circulation in the area of the county where the trust property is located.

B. The sale shall be held at the time and place designated in the notice of sale on a day other than a Saturday or legal holiday between 9:00 a.m. and 5:00 p.m. mountain standard time at a specified place on the trust property, at a specified place at any building that serves as a location of the superior court or at a specified place at a place of business of the trustee, in any county in which part of the trust property to be sold is situated.

C. The notice of sale shall contain:

1. The date, time and place of the sale. The date, time and place shall be set pursuant to section 33‑807, subsection D. The date shall be no sooner than the ninety‑first day after the date that the notice of sale was recorded.

2. The street address, if any, or identifiable location as well as the legal description of the trust property.

3. The county assessor's tax parcel number for the trust property or the tax parcel number of a larger parcel of which the trust property is a part.

4. The original principal balance as shown on the deed of trust. If the amount is not shown on the deed of trust, it shall be listed as "unspecified".

5. The names and addresses, as of the date the notice of sale is recorded, of the beneficiary and the trustee, the name and address of the original trustor as stated in the deed of trust, the signature of the trustee and the basis for the trustee's qualification pursuant to section 33‑803, subsection A, including an express statement of the paragraph under subsection A on which the qualification is based. The address of the beneficiary shall not be in care of the trustee.

6. The telephone number of the trustee.

7. The name of the state or federal licensing or regulatory body or controlling agency of the trustee as prescribed by section 33-803, subsection A.

8. The name, address, telephone number and electronic mail address of the beneficiary.

9. The names and addresses of housing counselors who can provide assistance to and attend negotiations with the beneficiary of an owner‑occupied residential trust property.

10. The statement that an owner‑occupied residential property will not be subject to foreclosure for up to one year after the date that the notice is recorded if the owner files an affidavit and otherwise complies with section 33‑810.01.

D. The notice of sale shall be sufficient if made in substantially the following form:

Notice of Trustee's Sale

The following legally described trust property will be sold, pursuant to the power of sale under that certain trust deed recorded in docket or book _______________________ at page __________ records of ______________ county, Arizona, at public auction to the highest bidder at (specific place of sale as permitted by law) _______________, in _______________ county, in or near _______________, Arizona, on ________, ____, at ___________ o'clock ___m. of said day, unless otherwise provided by law:

(street address, if any, or identifiable

location of trust property)

(legal description of trust property)

Tax parcel number _______________

Original principal balance $________________________

Name and address of beneficiary ______________________________

______________________________

Name and address of original trustor _________________________

_________________________

Name, address and telephone number of trustee ________________

__________________________________

Signature of trustee _____________________________

Manner of trustee qualification ___________________________

Name of trustee’s regulator _______________________________

Dated this _____________ day of ______________, _______.

(Acknowledgement)

E. Any error or omission in the information required by subsection C or D of this section, other than an error in the legal description of the trust property or an error in the date, time or place of sale, shall not invalidate a trustee's sale. Any error in the legal description of the trust property shall not invalidate a trustee's sale if considered as a whole the information provided is sufficient to identify the trust property being sold. If there is an error or omission in the legal description so that the trust property cannot be identified, or if there is an error in the date, time or place of sale, the trustee shall record a cancellation of notice of sale. The trustee or any person furnishing information to the trustee shall not be subject to liability for any error or omission in the information required by subsection C of this section except for the wilful and intentional failure to provide such information. This subsection does not apply to claims made by an insured under any policy of title insurance.

F. The notice of trustee sale may not be rerecorded for any reason. This subsection does not prohibit the recording of a new or subsequent notice of sale regarding the same property. END_STATUTE

Sec. 6. Section 33-809, Arizona Revised Statutes, is amended to read:

START_STATUTE33‑809. Request for copies of notice of sale; mailing by trustee; disclosure of information regarding trustee sale

A. A person desiring a copy of a notice of sale under a trust deed, at any time subsequent to the recording of the trust deed and prior to before the recording of a notice of sale pursuant thereto, shall record in the office of the county recorder in any county in which part of the trust property is situated a duly acknowledged request for a copy of any such notice of sale. The request shall set forth the name and address of the person or persons requesting a copy of such notice and shall identify the trust deed by setting forth the county, docket or book and page of the recording data thereof and by stating the names of the original parties to such deed, the date the deed was recorded and the legal description of the entire trust property and shall be in substantially the following form:

Request for Notice

Request is hereby made that a copy of any notice of sale under the trust deed recorded in docket or book ___________ at page ________, records of ______________ county, Arizona, _____________________________, _______________________________,

(legal description of trust property)

Executed by ________________________ as trustor, in which ______________ is named as beneficiary and __________________ as trustee, be mailed to _________________ at ___________________.

Dated this _______________ day of _______________, _____.

___________________

Signature

(Acknowledgement)

B. Not later than thirty days after recording the notice of sale, the trustee shall mail by certified or registered mail, with postage prepaid, a copy of the notice of sale that reflects the recording date together with any notice required to be given by subsection C of this section, addressed as follows:

1. To each person whose name and address are set forth in a request for notice, which has been recorded prior to before the recording of the notice of sale, directed to the address designated in such request.

2. To each person who, at the time of recording of the notice of sale, appears on the records of the county recorder in the county in which any part of the trust property is situated to have an interest in any of the trust property. The copy of the notice sent pursuant to this paragraph shall be addressed to the person whose interest appears of record at the address set forth in the document. If no address for the person is set forth in the document, the copy of the notice may be addressed in care of the person to whom the recorded document evidencing such interest was directed to be mailed at the time of its recording or to any other address of the person known or ascertained by the trustee. If the interest that appears on the records of the county recorder is a deed of trust, a copy of the notice only needs to be mailed to the beneficiary under the deed of trust. If any person having an interest of record or the trustor, or any person who has recorded a request for notice, desires to change the address to which notice shall be mailed, the change shall be accomplished by a request as provided under this section.

3. For single family residential properties only, to the property address, except that the copy mailed pursuant to this paragraph may be mailed by first class mail.

4. For an owner‑occupied residential property, to the incorporated city or town, if any, and the county in which the property is located.

C. The trustee, within five business days after the recordation of a notice of sale, shall mail by certified or registered mail, with postage prepaid, a copy of the notice of sale to each of the persons who were parties to the trust deed except the trustee. The copy of the notice mailed to the parties need not show the recording date of the notice. The notice sent pursuant to this subsection shall be addressed to the mailing address specified in the trust deed. In addition, notice to each party shall contain a statement that a breach or nonperformance of the trust deed or the contract or contracts secured by the trust deed, or both, has occurred, and setting forth the nature of such breach or nonperformance and of the beneficiary's election to sell or cause to be sold the trust property under the trust deed and the additional notice shall be signed by the beneficiary or the beneficiary's agent. A copy of the additional notice shall also be sent with the notice provided for in subsection B, paragraph 2 of this section to all persons whose interest in the trust property is subordinate in priority to that of the deed of trust along with a written statement that the interest may be subject to being terminated by the trustee's sale. The written statement may be contained in the statement of breach or nonperformance.

D. No request for a copy of a notice recorded pursuant to this section, nor any statement or allegation in any request, nor any record of request, shall affect the title to the trust property or be deemed notice to any person that a person requesting a copy of notice of sale has or claims any interest in, or claim upon, the trust property.

E. At any time that the trust deed is subject to reinstatement pursuant to section 33‑813, but not sooner than thirty days after recordation of the notice of trustee's sale, the trustee shall upon receipt of a written request, provide, if actually known to the trustee, the following information relating to the trustee's sale and the trust property:

1. The unpaid principal balance of the note or other obligation which that is secured by the deed of trust.

2. The name and address of record of the owner of the trust property as of the date of recordation of the notice of trustee's sale.

3. A list of the liens and encumbrances upon the trust property as of the date of recordation of the notice of trustee's sale, excluding those matters set forth in section 33‑438, subsection A.

If the trustee elects to charge a fee for providing the information requested, the fee shall not exceed five per cent of the amount the trustee may charge pursuant to section 33‑813, subsection B, paragraph 4, except that the trustee shall not charge a fee that is more than one hundred dollars or be required to accept a fee that is less than thirty dollars but may accept a lesser fee at the trustee's discretion. The trustee, or any other person furnishing information pursuant to this subsection to the trustee, shall not be subject to liability for any error or omission in providing the information requested, except for the wilful and intentional failure to provide information in the trustee's actual possession.

F. Beginning at 9:00 a.m. and continuing until 5:00 p.m. mountain standard time on the last business day preceding the day of sale and beginning at 9:00 a.m. mountain standard time and continuing until the time of sale on the day of the sale, the trustee shall make available the actual bid or a good faith estimate of the credit bid the beneficiary is entitled to make at the sale. If the actual bid or good faith estimate is not available during the prescribed time period, the trustee shall postpone the sale until the trustee is able to comply with this subsection.

G. In providing information pursuant to subsections E and F of this section, the trustee, without obligation or liability for the accuracy or completeness of the information, may respond to oral requests, respond orally or in writing or provide additional information not required by such subsections. With respect to property that is the subject of a trustee's sale, the beneficiary of such deed of trust or the holder of any prior lien may, but shall not be required to, provide information concerning such deed of trust or any prior lien that is not required by subsection E or F of this section and may charge a reasonable fee for providing the information. The providing of such information by any beneficiary or holder of a prior lien shall be without obligation or liability for the accuracy or completeness of the information. END_STATUTE

Sec. 7. Section 33-810, Arizona Revised Statutes, is amended to read:

START_STATUTE33-810. Sale by public auction; postponement of sale

A. On the date and at the time and place designated in the notice of sale, the trustee shall offer to sell the trust property at public auction for cash to the highest bidder. The trustee may schedule more than one sale for the same date, time and place. The attorney or agent for the trustee may conduct the sale and act at such sale as the auctioneer for the trustee. Any person, including the trustee or beneficiary, may bid at the sale. Only the beneficiary may make a credit bid in lieu of cash at sale. The trustee shall require every bidder, except the beneficiary or the incorporated city or town or the county in which an owner‑occupied residential property is located, to provide a ten thousand dollar deposit in any form that is satisfactory to the trustee as a condition of entering a bid. The trustee or auctioneer may control the means and manner of the auction. Every bid shall be deemed an irrevocable offer until the sale is completed, except that a subsequent bid by the same bidder for a higher amount shall cancel that bidder's lower bid. To determine the highest price bid, the trustor or beneficiary present at the sale may recommend the manner in which the known lots, parcels or divisions of the trust property described in the notice of sale be sold. The trustee shall conditionally sell the trust property under each recommendation, and, in addition, shall conditionally sell the trust property as a whole. The trustee shall determine which conditional sale or sales result in the highest total price bid for all of the trust property. The trustee shall return deposits to all but the bidder or bidders whose bid or bids result in the highest bid price. The sale shall be completed on payment by the purchaser of the price bid in a form satisfactory to the trustee, except that a warrant from a government entity that is bidding on the property is deemed to be in satisfactory form. The subsequent execution, delivery and recordation of the trustee's deed as prescribed by section 33‑811 are ministerial acts. If the trustee's deed is recorded in the county in which the trust property is located within fifteen business days after the date of the sale, the trustee's sale is deemed perfected at the appointed date and time of the trustee's sale. If the highest price bid at a completed sale is less than the amount of that bidder's deposit, the amount of the deposit in excess of the bid price shall be refunded by the trustee at the time of delivery of the trustee's deed.

B. The person conducting the sale may postpone or continue the sale from time to time or change the place of the sale to any other location authorized pursuant to this chapter by giving notice of the new date, time and place by public declaration at the time and place last appointed for the sale. Any new sale date shall be a fixed date within ninety calendar days of the date of the declaration. After a sale has been postponed or continued, the trustee, on request, shall make available the date and time of the next scheduled sale and, if the location of the sale has been changed, the new location of the sale until the sale has been conducted or canceled and providing this information shall be without obligation or liability for the accuracy or completeness of the information. No other notice of the postponed, continued or relocated sale is required except as provided in subsection C of this section.

C. A sale shall not be complete if the sale as held is contrary to or in violation of any federal statute in effect because of an unknown or undisclosed bankruptcy. A sale so held shall be deemed to be continued to a date, time and place announced by the trustee at the sale and shall comply with subsection B of this section or, if not announced, shall be continued to the same place and at the same time twenty‑eight days later, unless the twenty‑eighth day falls on a Saturday or legal holiday, in which event it shall be continued to the first business day thereafter. In the event a sale is continued because of an unknown or undisclosed bankruptcy, the trustee shall notify by registered or certified mail, with postage prepaid, all bidders who provide their names, addresses and telephone numbers in writing to the party conducting the sale of the continuation of the sale.

D. A sale is postponed by operation of law to the next business day at the same scheduled time and place if an act of force majeure prevents access to the sale location for the conduct of the sale. END_STATUTE

Sec. 8. Title 33, chapter 6.1, article 1, Arizona Revised Statutes, is amended by adding section 33-810.01, to read:

START_STATUTE33-810.01. Stay of trustee's sale; affidavit; one‑year period

A. On receipt of a notice of sale, the owner of the property may deliver to the trustee an affidavit for temporary stay of trustee's sale. The affidavit shall be signed by at least one of the owners of the trust property and shall contain the statement of that owner as follows:

1. The owner is a natural person.

2. The loan that is secured by the property was incurred primarily for personal, family or household purposes.

3. The loan is secured by a first or second deed of trust or a home equity loan on real property that is improved with one to four residential units.

4. The real property that is subject to foreclosure is the principal residence of the owner.

5. The owner owns no other real property.

6. The real property is located in this state.

B. The affidavit shall also include the owner's telephone number, mailing address and any other contact information for the owner.

C. The affidavit shall be sworn to and signed by at least one of the owners and the owner's signature shall be notarized.

D. The owner shall mail the affidavit to the trustee at the address provided by the trustee in the notice of sale. On receipt of an affidavit that appears on its face to be complete, the trustee shall postpone the sale for at least sixty days and shall provide notice of the postponement of the sale to all persons who are required to receive a notice of sale.

E. During the sixty-day postponement period, the owner shall have the opportunity to negotiate a revised payment or other revised terms of the loan and may accept the assistance of a representative of a private nonprofit organization, a representative of a city, town, county or state government or a representative of a federal agency to assist the owner in meeting with and negotiating a resolution with the lender. The trustee shall assist in providing information, including lender contact information, and shall cooperate with any meetings and negotiations that occur between the owner and lender.

F. During the sixty-day postponement period, the owner shall make payments on the loan that is in foreclosure in an amount that the owner and lender agree is just and equitable. Failure to make the payment agreed to pursuant to this subsection terminates the stay of foreclosure, and on notice from the lender of failure to make a payment after the expiration of the sixty-day period, the trustee may reschedule the trustee's sale. If the owner continues to make a timely monthly payment in the amount agreed to pursuant to this subsection, a trustee's sale may not be held any earlier than one year after the date of the originally scheduled trustee sale. On completion of the one‑year period, and unless the lender has revised the terms of the loan and directed the trustee to cancel the sale, the trustee's sale may proceed as otherwise provided by law. END_STATUTE

Sec. 9. Delayed repeal

Section 33‑810.01, Arizona Revised Statutes, as amended by this act, is repealed from and after June 30, 2013.

Sec. 10. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 11. Legislative intent

The legislature declares that a serious public emergency exists with respect to real estate foreclosures in this state due to widespread and fundamentally unsound lending practices for mortgage loans, second mortgages and home equity loans. These lending practices have skewed the real estate and mortgage market in this state, have caused distress to consumers, neighborhoods and communities and have adversely affected the economic health of this state. The legislature declares that it is in the interests of this state that during this time of serious economic strain, homeowners should be permitted an opportunity to work with their lenders to reconfigure their obligations in a manner that preserves neighborhoods and protects both consumers and lenders.