Proposed New Law Requires Beneficiary Tracing as Prerequisite to Foreclosure

The 2011 State Senate has authored a bill that would require, as a pre-condition to conducting a non-judicial foreclosure via a trustee’s sale, that where the beneficiary as of the sale date is not the same as the beneficiary on the origination date (i.e., the date the deed of trust was issued), a separate summary document be recorded that identifies every prior beneficiary and all documents recorded that reflect the change in beneficiary.   In effect this proposed law eliminates unrecorded assignments of beneficiary in Arizona.  Here is the bill.