January 7, 2013
Your Goals for 2013 and Arizona Tax Lien Sales Part 1
Dear Premium Members,
Welcome to 2013. Let's make this a great
year. Along with the new year comes new goals,
reflections of past successes and mistakes, new financial aspirations
and a sense of renewal. January, in fact, is usually a busy time for
financial companies and health clubs. We all want to get back on track,
both physically, spiritually or emotionally, and financially. Believe
me, I feel the same every year.
The U.S. appears to be on a road to recovery, although it's slow.
Our lawmakers are getting a few things done by avoiding the so called fiscal
cliff; however, we still have a looming debt crisis, health care that
rises at about 10 times the rate of inflation and many other problems.
job growth is steady and
the housing market is looking up. So, what does this mean for tax sale
investing? Well, you are in a sweet spot that won't last forever. The
sales are still great because tax foreclosures lag behind economic
recovery. But, don't wait. When I taught my students in 2005 we were in
the heady days of investing and the sales were crowded, fewer liens
were available and average interest rates were down (see below). In
2011 and 2012, the average interest rate has been around 10%, which is
not bad for a state that allows for Internet Auctions. Not only that
the number of liens not purchased at the sale, which are called "Struck
to State" or "Over the Counter" liens has steadily increased. These
liens can be purchased at the full 16% interest rate, but it's
Avg Int Rate
Liens Struck to State - 16%
Data: From Maricopa County Website (Maricopa.gov)
For 2013, I want to issue three
1. Develop a positive mindset. Whether
you believe in the “law of attraction” or just positive mental
attitude, it works! You won't accomplish anything without a positive
outlook. Many of us can complain about losing jobs or the horrible
returns in our 401(k) or IRA accounts, but don't just complain, do
something about it this year. Set your goals and don't let a few bumps
get in your way. Strive to hang around others who are positive and
successful and ignore the negative.
2. Take care of your body. Exercise and
eat right. In many religions, the body is referred to as your temple,
so to treat it poorly is to defile the temple. Regardless of whether
you believe in a higher power, all the financial success in the world
means nothing if you are sick, unhealthy, grossly overweight or just
feel bad about yourself. Taking care of your health will also work hand
in hand with your positive mindset. As you see yourself looking better
and you feel healthier, you'll be happier and you will attract others
who are happy and successful.
3. Get your financial house in
order. Start by setting up a filing system and tracking what you are
spending. This does not have to be complicated, just keep track of what
you buy. Check out one of my favorite financial books of all time –
Your Money or Your Life (http://www.yourmoneyoryourlife.org).
Determine what your net worth is now and start tracking it. Remember
that your net worth is essentially all your assets minus all your
debts. Finally, fill out a personal goal sheet.
Let's talk about your goals for 2013.
Goals are our roadmap or personal GPS system to success. As a gift to
you, I am attaching a link to find a personal, one-page business plan.
I normally only give this out to seminar or mentoring attendees;
however, I think it's too important not to share.
Here is the link:
Why only a one-page business or personal
Because that is all you really need. You
can use this for yourself or your business. Take it seriously and
update it throughout the year. As a bonus and only if you want to, you
can fill it out and return it to me and I will personally review each
one and give you feedback.
Now let's talk about what you can do to
kick yourself into gear for 2013.
Learn...learn...learn, but also put
your knowledge into action. Although I normally teach a few workshops throughout
the year, I also actively purchase liens, deeds, foreclosures and
international properties. I also find time to read, listen to tapes,
and attend seminars and workshops myself. If I didn't, I wouldn't have
the energy and excitement that I need. However, I want to warn you
about only becoming a seminar junkie. Seminars and workshops are fun,
but at some point you need to do something and then you'll really get
So let's get started learning about tax
let's understand what we are dealing with. As boring as it sounds, you
should know where the tax lien statutes/laws are located.
Before we dive into an Arizona list, I want you to really understand the law.
Where may I obtain copies of the Arizona Revised Statutes that pertain to the tax liens?
Statutes are available on-line (Title 42, Chapter 18, beginning with Article 3)
your convenience, most of the tax sale laws are presented below. Please
read through this so you really know what the law says and not what
some book or website told you.
42-18101. Sale and foreclosure of tax liens; effect of insubstantial failure to comply
A. The county treasurer shall secure the payment of unpaid delinquent
taxes by using the provisions of this article and articles 4, 5 and 6
of this chapter to sell the tax liens provided for in section 42-17154
and to foreclose the right to redeem.
B. An insubstantial failure to comply with these provisions does not affect the validity of:
1. The assessment and levy of taxes.
2. Any tax lien on real property for delinquent unpaid taxes.
3. The sale of a tax lien or the foreclosure of the right to redeem by which tax collection is enforced.
42-18102. Delinquent tax record
A. The county treasurer shall maintain a record of delinquent taxes,
listing the properties, owners of record and the amount of taxes,
penalties and interest due.
B. Any informality in maintaining the record does not affect its validity.
42-18103. Notice of delinquent taxes
On or before September 1 of each year the county treasurer shall send
by mail to the last known address of each person or firm that owes
delinquent taxes notice that there are delinquent taxes against the
real property that is assessed in the taxpayer's name.
42-18104. Taxes for which lien may be sold
A. The delinquent taxes for which a real property tax lien may be sold pursuant to this article are not limited to unpaid taxes for any particular year or years.
B. The county treasurer shall advertise and sell the tax lien for the
aggregate amount of all unpaid taxes that are delinquent on the
property, together with all penalties, interest and charges
respectively due for the current or preceding years, whether or not the
aggregate amount or any part has been reduced to judgment.
C. The failure to include the unpaid taxes of any year does not
invalidate a sale for unpaid taxes that are delinquent for any other
year or years.
42-18105. Limitation on sale for unpaid tax; exceptions
No sale for an unpaid tax may be commenced at a date later than five years after delinquency unless:
1. The sale is advertised within the five year period.
2. The failure to advertise within five years of the delinquency is due
to a restraining order or injunction issued by a court of competent
42-18106. Delinquent tax list and notice of sale
A. On or before December 31 of each year the county treasurer shall prepare:
1. A list of all real property on which the taxes for prior tax years
are unpaid and delinquent, describing the property as it is described
on the tax roll.
2. An accompanying notice stating that the treasurer will sell a tax
lien on each parcel of real property at public auction for taxes,
penalties, interest and charges on the real property.
B. The notice shall include:
1. The name of the owner.
2. The legal description and parcel number of the property.
3. The tax years for which taxes are delinquent.
4. The taxes, penalties, interest and charges assessed.
C. If the board of supervisors by resolution elects to pursue any other
remedy provided by law, the board may dispense with the notice under
this section, but that action does not affect the provisions of
sections 42-18109 and 42-18110.
42-18107. Additional penalty on listed property
A. A penalty of five dollars or five per cent of the delinquent taxes
for which the tax lien is being sold, whichever is more, shall be added
to the amount of taxes that are delinquent on each parcel of real
property that is separately assessed and described in the list and
B. This penalty:
1. Is imposed and is due on January 1 after the list is prepared pursuant to section 42-18106.
2. Shall be collected by the county treasurer.
42-18108. Personal notice of proposed sale
The county treasurer shall mail a copy of the notice of proposed sale
to the owner of each parcel of property on the delinquent tax list at
the owner's last known address.
42-18109. Publication and posting of list and notice
A. The county treasurer shall post a correct copy of the list and
notice under section 42-18106 near the outer door of the office of the
county treasurer. The list and notice shall remain posted for at least two weeks before the date of the sale.
B. The county treasurer shall publish a correct copy of the list and notice under section 42-18106 at least one time in a newspaper of general circulation in the county. The publication shall be at least two weeks but not more than three weeks before the date of sale stated in the notice.
C. The newspaper that prints the list and notice under section 42-18106
shall also post the list and notice from the first publication date
through March 1 of the current year on the internet on a web site that posts the legal notices of ten or more Arizona newspapers.
42-18110. Affidavits of posting and publication
A. The county treasurer shall record an affidavit stating the posting
of the delinquent tax list and notice of the tax lien sale.
B. Immediately after the last publication, each publisher who publishes
the list and notice on the order of the county treasurer shall deliver
to the treasurer and record an affidavit of publication made by the
publisher, manager or editor of the newspaper to whom the facts of
publication are known. A publisher who fails to furnish and record the
affidavit within ten days after the last publication shall not be paid
for the publication of the list and notice. The recorded affidavit is
prima facie evidence of the recited facts in any action in the courts
of this state.
42-18111. Parcels; property description; designation of owner unnecessary
A. If two or more lots or parcels are assessed as one parcel, the tax
liens on them may be sold as a single tax lien on one parcel.
B. The county assessor's parcel number and description of property with
sufficient certainty to identify the quarter section or lot, block and
tract may be used to describe real property in the delinquent tax list
and notice of sale.
C. For all other entries, notices, certificates, deeds, pleadings,
judgments and proceedings made or had under this chapter, it is
sufficient to designate the sections, townships, ranges, lots, blocks
and portions by initial letters, figures and abbreviations.
D. If a real property tax lien is offered for sale, it is not necessary
to advertise or sell it as being against the property of any specific
person. The sale is not invalid by reason of the fact that the property
was assessed or advertised in the name of a person other than the
rightful owner, or to an unknown person, if the description of the real
property in the list and notice is sufficient to identify it and
includes the amount of taxes for which the tax lien is advertised to be
42-18112. Time of sale
A. The tax lien sale shall be held in February.
B. On the day designated in the list and notice the county treasurer
shall begin the sale of all tax liens on real property that is
described in the list and notice on which the taxes and charges have
not been paid. The county treasurer shall continue the sale from day to
day, Sundays and holidays excluded, until the tax lien on each parcel
has been sold.
C. If a real property tax lien cannot be advertised and sold at the
time prescribed by this article, the county treasurer shall make the
sale on any later date on which it can be made, allowing sufficient
time for publication and posting of the list and notice as provided by
42-18113. Procedure in the case of no bid; assignment to state
A. If there is no bid for a tax lien, the county treasurer shall pass
it for the time and shall reoffer it at the beginning of the sale on
the next day until all tax liens are sold or until the county treasurer
becomes satisfied that no more sales can be made. At that time the
1. Assign to the state the property tax liens remaining unsold for the amount of the taxes, interest, penalties and charges.
2. Issue a certificate of purchase to the state as provided in other cases.
B. If a tax lien has been assigned to the state:
1. Taxes that are assessed against that property are not payable until
they have been derived from the sale or redemption of the property or
from the assignment of a certificate of purchase pursuant to section
2. The rate of interest payable on redemption shall be as prescribed by section 42-18053.
42-18053. Interest on delinquent taxes; exceptions
A. Except as provided in subsection B of this section, all taxes bear interest from the time of delinquency at the rate of sixteen per cent per year simple until paid. A fraction of a month is counted as a whole month.
B. Interest shall not be collected:
1. If the delinquency is the result of an error by the county assessor or county treasurer.
2. If the full year tax for the year is paid on or before December 31
of the tax year. This paragraph applies regardless of whether payment
of tax is due pursuant to section 42-18052, subsections A and B, or
subsection C for an amount of tax one hundred dollars or less.
42-18114. Successful purchaser
A real property tax lien shall be sold pursuant to this article to the person
who pays the whole amount of delinquent taxes, interest, penalties and
charges due on the property, and who in addition offers to accept the
lowest rate of interest on the amount so paid to redeem the
property from the sale, which may not exceed the rate prescribed by,
and computed pursuant to, section 42-18053. The lien bears interest at
the bid rate from the first day of the month following the purchase of
the tax lien.
42-18115. Easements and liens not extinguished by sale
A. The sale of a real property tax lien does not extinguish any easement on or appurtenant to the property.
B. The sale of a real property tax lien does not extinguish any lien
for an assessment levied pursuant to title 48, chapter 4, 6 or 14, or
42-18116. Payment; resale or recovery on reneged bid; processing fee
A. The purchaser of a tax lien shall pay the purchase price in cash at the time of sale.
B. If the purchaser fails to pay the amount due:
1. The county treasurer shall resell the tax lien if the sale has not been closed.
2. If the sale has been closed, the treasurer may either:
(a) Advertise it specially in the manner provided for publishing and
posting the original list and notice pursuant to section 42-18109.
(b) Recover the amount bid by civil action in a court of competent jurisdiction.
C. The purchaser shall pay a processing fee of not more than ten
dollars per tax lien. The treasurer shall deposit monies collected
pursuant to this subsection in the taxpayers' information fund
established by section 11-495.
42-18117. Record of tax lien sales
The county treasurer shall make a correct record of all sales of real
property tax liens, known as the record of tax lien sales, containing:
1. The date of sale.
2. A description of each parcel on which a tax lien was sold.
3. The name of the owner, if known.
4. The name of the purchaser.
5. The total amount of taxes, interest, penalties and charges for which the tax lien was sold.
6. The amount of subsequent taxes and interest paid by the purchaser.
7. The name of the assignee and the date of assignment of the certificate.
8. The name of the person redeeming and the date of redemption.
9. The total amount paid for redemption.
10. The name of any person to whom conveyed and the date of the deed.
42-18118. Certificate of purchase or registered certificate; form; assignment; fee
A. The county treasurer shall make, execute and deliver a certificate
of purchase to each purchaser at the sale for delinquent taxes or to
each assignee. The treasurer may provide for a registered certificate
in the treasurer's records in lieu of delivering a physical certificate.
B. The certificate of purchase or registered certificate shall:
1. Describe the real property on which a tax lien is sold as it is described in the record of tax lien sales.
2. Recite the date of the sale.
3. State the name of the purchaser.
4. Recite the tax year or years for which the tax lien was sold.
5. Recite the amount of all taxes, interest, penalties and charges for
which the tax lien was sold and the rate of interest payable in order
C. The certificate of purchase, whether registered or paper or whether
issued to this state or to a person, is assignable by endorsement or as
provided by section 42-18121.01. An assignment, when noted on the
record of tax lien sales in the office of the county treasurer vests in
the assignee all the right and title of the original purchaser.
D. The county treasurer shall collect from the purchaser or assignee a fee of ten dollars for each certificate.
42-18119. Certificate of purchase as evidence of valid procedure
The certificate of purchase or its certified copy is prima facie
evidence of the correct performance and regularity of all acts
pertaining to the tax lien sale and the validity and enforceability of
the tax lien.
42-18120. Duplicate certificate of purchase; fee
A. If a certificate of purchase is lost, destroyed or wrongfully
withheld from the rightful owner, the purchaser of the certificate may
file a notarized affidavit with the county treasurer attesting to the
loss of the certificate. On presentation of the notarized affidavit,
the county treasurer shall issue to the holder an exact duplicate of
the certificate of purchase.
B. The county treasurer shall collect a fee of five dollars for each duplicate certificate of purchase.
42-18121. Payment of subsequent taxes by certificate holder; fee
A. On or after June 1, if a person who holds a certificate of purchase desires to pay subsequent taxes,
accrued interest and related fees due on the property, the person shall
exhibit the certificate or receipt of registered certificate to the
county treasurer. The treasurer shall enter the amount of the payment
on the certificate and on the record of tax lien sales. The amount of
subsequent taxes bears interest at the rate stated in the certificate
of purchase from the first day of the month following the purchase of
the subsequent tax lien.
B. The county treasurer shall collect a fee of five dollars from the holder of the certificate for making the entries.
42-18121.01. Subsequent purchaser; assignment
A. If a person who holds a certificate of purchase does not exercise
the option to pay subsequent taxes, accrued interest and related fees
due on the property pursuant to section 42-18121, the county treasurer
may require a person who desires to purchase a subsequent certificate
of purchase on the property to acquire by assignment all currently
outstanding certificates of purchase previously issued on the property.
The county treasurer shall process the sale as an assignment on behalf
of the previous holder of the certificate of purchase.
B. An assignment made
pursuant to this section vests in the person all the right and title of
the original purchaser with the lien date effective from the original
lien sale date.
42-18122. Resale of tax liens assigned to the state; fee
A. If a tax lien is assigned to this state as provided by this article,
the county treasurer shall sell, assign and deliver the certificate of
purchase to any person who pays to the county treasurer the whole
amount then due under the certificate, including interest, penalties
and charges, and in addition the entire amount of subsequent taxes
assessed on the property described in the certificate.
B. The county treasurer shall collect a fee of not more than ten dollars from the assignee for making each assignment.
42-18123. Distribution of monies
The county treasurer shall:
1. Distribute all monies collected or received under this chapter as
delinquent or back taxes in the same manner and proportions as required
by law with respect to other taxes.
2. Credit to the county general fund interest, penalties, charges and
fees collected under this chapter in the process of collecting taxes,
except as provided in section 42-18116, subsection C.
42-18124. Compromising taxes, interest and penalties; omission of tax or fund from action for collection
A. If it appears to the board of supervisors that any property is not
worth the amount of taxes, interest, costs and penalties due or that
the tax lien on the property would not sell for that amount, the board
may compromise the taxes, interest and penalties with the owner or with
the holder of a certificate of purchase that was issued pursuant to
B. On payment to the county treasurer of the amount agreed on the treasurer shall:
1. Issue a certificate of redemption releasing the property from the tax lien.
2. Distribute the monies paid to the various funds to which the taxes
are due in the proportion the amount received bears to the whole amount
charged against the property for the current tax year.
C. The board may:
1. Order that no action be brought on any specified property if in its
judgment the property is not worth or will not bring an amount equal to
the taxes, interest and costs.
2. Direct that any tax or fund, the validity of which is being
contested in the courts, be omitted from any action brought under this
article. The judgment rendered in an action in which the tax is omitted
does not bar or affect a subsequent action for the tax so omitted.
3. Condition the relief under this section by requiring the holder of a
certificate of purchase to complete a judicial foreclosure under
article 5 of this chapter.
D. If the board of supervisors determines that property described in
subsection A of this section is also substantially contaminated with
hazardous substances or petroleum, the board may reduce the lien for
the delinquent taxes, interest, costs and penalties as follows:
1. The delinquent taxes, interest, costs and penalties may be reduced
in an amount not to exceed the actual expenses to mitigate conditions
at the property for:
(a) Removal actions as defined by 42 United States Code section 9601.
(b) Preparation and implementation of a remedial investigation and feasibility study pursuant to section 49-287.03.
(c) Preparation and implementation of a remedial action plan pursuant to section 49-287.04.
(d) Preparation and implementation of an agreement for work pursuant to section 49-282.05.
(e) Preparation and implementation of a corrective action plan pursuant to section 49-1005.
(f) Preparation and implementation of a work plan approved pursuant to section 49-177.
2. For property acquired after December 31, 2001, the expenses must
have been incurred by or on behalf of the property owner within five
years after acquiring title to the property.
3. For property acquired on or before December 31, 2001, the expenses
must be incurred by or on behalf of the property owner on or before
December 31, 2006.
4. Only expenses that are reasonable and necessary to remediate
contamination at the property may be considered for purposes of this
5. Expenses that were inconsistent with or in violation of requirements
imposed by the department of environmental quality may not be used to
reduce taxes, interest, costs and penalties under this section.
6. A person that is a responsible party pursuant to section 49-283, or
that person's partner, officer, employee or relative, is not eligible
to redeem the property from the reduced tax lien. For the purposes of
this paragraph, "relative" means:
(b) Parent or ancestor of a parent.
(c) Child or descendant of a child.
(e) Cousin, aunt, uncle, niece or nephew of the first degree.
(f) The spouse of a relative listed in subdivisions (b) through (e).
(g) A relative listed in subdivisions (b) through (e) by the half-blood or by adoption.
7. A person seeking a reduction under this subsection shall submit to the board of supervisors an affidavit attesting that:
(a) The expenses were reasonable and necessary to address contamination at the property.
(b) The person is not a responsible party pursuant to section 49-283 or a relative as described in this section.
8. The county treasurer shall apply the reduction in delinquent taxes,
interest, costs and penalties pro rata among the jurisdictions imposing
the taxes on the property and shall note the reduction in the
delinquent tax record under section 42-18102.
E. Subsection D of this section does not affect the personal liability
of a property owner for acts or omissions that caused or contributed to
42-18125. Erroneous sales
If by mistake or wrongful act of the county treasurer, recorder or
assessor, or as a result of double assessment, a real property tax lien
is sold on property on which no tax is due, the county treasurer shall
hold the purchaser harmless by paying the purchaser the amount of the
principal and interest at the rate bid and endorsed on the certificate
of purchase or ten per cent per year simple, whichever is less.
42-18126. Failure to perform duty by county treasurer; classification
A county treasurer who knowingly refuses or fails to publish and post
the list and notice of delinquent tax sales before February 15 or who
knowingly refuses or fails to perform any of the duties imposed by this
chapter is guilty of a class 2 misdemeanor.
42-18127. Expiration of lien and certificate; notice; applicability
A. If the tax lien is not redeemed and the purchaser or the purchaser's
heirs or assigns fail to commence an action to foreclose the right of
redemption as provided by this chapter within ten years
after the last day of the month in which the lien was acquired pursuant
to section 42-18114, the certificate of purchase or registered certificate expires and the lien is void.
B. At least thirty but not more than sixty days before the expiration
date, the county treasurer shall notify the purchaser by certified mail
of the pending expiration. Within seven days after expiration, the
treasurer shall notify the purchaser by certified mail that the lien
and certificate of purchase or registered certificate have expired.
C. This section applies to liens purchased from and after August 22, 2002.
D. This section does not apply if, at the time of expiration:
1. The parcel for which the lien was purchased is subject to a judicial
proceeding or a thirty day notice pursuant to section 42-18202.
2. Other applicable law or court order prohibits the commencement of an
action to foreclose the right to redeem. The expiration date of the tax
lien shall be extended to twelve months following the termination of
42-18151. Who may redeem real property tax liens; persons under disability; persons owning partial interest
A. A real property tax lien that is sold under article 3 of this chapter may be redeemed by:
1. The owner.
2. The owner's agent, assignee or attorney.
3. Any person who has a legal or equitable claim in the property, including a certificate of purchase of a different date.
B. A tax lien that is sold on real property of a minor or a legally
incapacitated person is subject to redemption only in the manner
provided for persons under no such disability.
C. A person who owns an interest in real property less than the whole:
1. May redeem a tax lien against that interest as a percentage of the
entire liability reported by the county assessor by paying the
proportionate part of the whole amount due.
2. Shall receive a certificate of redemption for the interest in the manner provided by this article.
42-18152. When lien may be redeemed
A real property tax lien may be redeemed at any time:
1. Within three years after the date of sale.
2. After three years but before the delivery of a treasurer's deed to the purchaser or the purchaser's heirs or assigns.
42-18153. Amount required for redemption; elderly assistance fund deposit
A. To redeem a real property tax lien a person must pay to the county treasurer:
1. The amount for which the real property tax lien was sold, with interest at the rate stated in the certificate of purchase.
2. The amount of all taxes accruing on the real property after the sale
and paid by the purchaser and endorsed on the certificate of purchase,
with interest on the subsequent taxes at the same rate as stated in the
certificate of purchase.
3. Any statutory fees paid by the purchaser or the purchaser's assigns
in connection with the certificate, except the processing fee imposed
by section 42-18116, subsection C, with interest at the rate stated in
the certificate of purchase except as otherwise provided by this
B. To redeem a real property tax lien in a county that has established
an elderly assistance fund a person shall pay to the county treasurer:
1. The amount for which the real property tax lien was sold, with interest at the rate prescribed by section 42-18053.
2. The amount of all taxes accruing on the real property after the sale
and paid by the purchaser and endorsed on the certificate of purchase,
with interest on the subsequent taxes at the same rate prescribed by
3. Any statutory fees paid by the purchaser or the purchaser's assigns
in connection with the certificate, except the processing fee imposed
by section 42-18116, subsection C, with interest at the rate prescribed
by section 42-18053 except as otherwise provided by this chapter.
C. After a real property tax lien is redeemed under subsection B of
this section, and if an elderly assistance fund is established in the
county pursuant to section 42-17401, the county treasurer shall deposit
an amount in the elderly assistance fund that is equal to the
difference in the amount of interest prescribed by section 42-18053 and
the amount of interest stated in the certificate of purchase.
42-18154. Certificate of redemption; issuance; contents; fee
A. If a person requests to redeem a real property tax lien that was
sold under article 3 of this chapter, and if the county treasurer is
satisfied that the person has the right to redeem the tax lien, and if
the person pays the amount due, the county treasurer shall issue to the
person a certificate of redemption.
B. The certificate shall:
1. Describe the parcels on which the tax lien is redeemed.
(a) The date of redemption.
(b) The amount paid.
(c) By whom redeemed.
C. For each certificate of redemption the county treasurer shall:
1. Make the proper entries in the treasurer's record of tax lien sales.
2. Collect a fee of ten dollars.
D. A holder of a certificate of redemption may record the certificate in the office of the county recorder.
42-18155. Payment of redemption money to holder of certificate of purchase or registered certificate
A. On demand of any person who is entitled to redemption money held by
the county treasurer, the treasurer shall pay the money to that person
on the surrender of the certificate of purchase or on the redemption of
the registered certificate for the redeemed tax lien.
B. If only a portion of the tax lien on the property described in the
certificate of purchase or the registered certificate has been
redeemed, the treasurer shall endorse on the certificate or annotate
the record of the registered certificate the portion redeemed and the
amount of money paid to the person holding the certificate and shall
take a receipt for the money paid.
42-18201. Action to foreclose right to redeem
At any time beginning three years after the sale of a tax lien but not later than ten years after
the last day of the month in which the lien was acquired pursuant to
section 42-18114, if the lien is not redeemed, the purchaser or the
purchaser's heirs or assigns, or the state if it is the assignee, may
bring an action to foreclose the right to redeem. The action to
foreclose the right to redeem shall be filed in the superior court in
the county in which the real property is located. If any applicable law
or court order prohibits bringing an action to foreclose the right to
redeem, the limitation provided herein shall be extended twelve months
following the termination of such prohibition.
A. At least thirty days before filing
an action to foreclose the right to redeem under this article, but not
more than one hundred eighty days before such an action is
commenced or may be commenced under section 42-18101 the purchaser
shall send notice of intent to file the foreclosure action by certified
1. The property owner of record according to the records of the county
recorder in the county in which the property is located or to all of
(a) The property owner according to the records of the county assessor
in the county in which the property is located as determined by section
(b) The situs address of the property, if shown on the tax roll and if different from the owner's address under subdivision (a).
(c) The tax bill mailing address according to the records of the county
treasurer in the county in which the property is located, if that
address is different from the addresses under subdivisions (a) and (b).
2. The treasurer of the county in which the real property is located.
B. The notice shall include:
1. The property owner's name.
2. The real property tax parcel identification number.
3. The legal description of the real property.
4. The certificate of purchase number.
5. The proposed date of filing the action.
C. If the purchaser fails to send the notice required by this section,
the purchaser is considered to have substantially failed to comply with
this section. A court shall not enter any action to foreclose the right
to redeem under this article until the purchaser sends the notice
required by this section.
42-18203. Application of law and rules of procedure
A. The provisions of law relating to civil actions and rules of civil
procedure control the proceedings in an action to foreclose the right
to redeem, including the right of appeal.
B. In an action to foreclose the right to redeem with respect to tax
liens sold on real property of minors and legally incapacitated
persons, the provisions of law relating to the prosecution of civil
actions against persons under those disabilities apply.
42-18204. Judgment foreclosing right to redeem; effect
A. In an action to foreclose the right to redeem, if the court finds
that the sale is valid and that the tax lien has not been redeemed, the
court shall enter judgment:
1. Foreclosing the right of the defendant to redeem.
2. Directing the county treasurer to expeditiously execute and deliver
to the party in whose favor judgment is entered, including the state, a
deed conveying the property described in the certificate of purchase.
B. After entering judgment the parties whose rights to redeem the tax
lien are thereby foreclosed have no further legal or equitable right,
title or interest in the property subject to the right of appeal and
stay of execution as in other civil actions.
C. The foreclosure of the right to redeem does not extinguish any easement on or appurtenant to the property.
D. The foreclosure of the right to redeem does not extinguish any lien
for an assessment levied pursuant to title 48, chapter 4, 6, 14 or 18,
or section 9-276.
42-18205. County treasurer's deed; form
A. On receiving a certified copy of a judgment foreclosing the right to
redeem and a fee of fifty dollars per parcel, the county treasurer
shall execute and deliver to the party in whose favor the judgment was
entered a deed conveying the property described in the judgment.
B. The deed shall include the following information:
1. The date, court action number and name of the judgment.
2. The name of the purchaser.
3. The property description.
4. The date of the conveyance.
5. A formal acknowledgment by the treasurer.
42-18206. Redemption during pendency of action to foreclose
Any person who is entitled to redeem under article 4 of this chapter
may redeem at any time before judgment is entered, notwithstanding that
an action to foreclose has been commenced, but if the person who
redeems has been served personally or by publication in the action, or
if the person became an owner after the action began and redeems after
a notice is recorded pursuant to section 12-1191, judgment shall be
entered in favor of the plaintiff against the person for the costs incurred by the plaintiff, including reasonable attorney fees to be determined by the court.
42-18207. Prosecution of action brought by state; disposition of costs
If the state brings an action to foreclose, it shall be prosecuted by
the county attorney. The costs and attorney fees awarded shall be
deposited in the county general fund.
42-18208. Expiration of lien and certificate; notice
A. If a tax lien that was purchased pursuant to section 42-18114 on or
before August 31, 2002 is not redeemed and the purchaser or the
purchaser's heirs or assigns fail to commence an action to foreclose
the right of redemption on or before ten
years from the date that the lien was purchased, the certificate of
purchase or registered certificate expires and the lien is void.
B. At least six months before the certificate of purchase or registered certificate expires, the county treasurer shall:
1. Notify each purchaser by certified mail of the pending expiration.
2. Post the names of purchasers who hold liens that are subject to pending expiration:
(a) Near the outer door of the office of the county treasurer.
(b) On the county treasurer's web site.
3. Publish the names of purchasers who hold liens that are subject to
pending expiration at least one time in a newspaper of general
circulation in the county.
C. Subsection A of this section does not apply if the tax lien is
assigned to the state pursuant to section 42-18113 unless the lien is
resold pursuant to section 42-18122.
D. If a judicial proceeding prohibits bringing an action to foreclose
the right to redeem, the time of expiration under this section shall be
extended by twelve months following the completion of the judicial
Let me summarize quickly:
In Arizona, tax lien sales occur in February each year for delinquent taxes of the previous year.
Interest rate: 16%
Auction type: bid down in 1% increments, the average rates are shown in the table
Redemption Period: 3 years from the date of the sale. After 3 years you can foreclose and take ownership of the property.
Lien Expiration Period: If you wait longer than 10 years to foreclose, a tax lien will expire and become void.
These are taxes owed for the next year that you as an investor may pay.
You earn the same interest rate that you bid on the first year's taxes.
If you fail to pay subsequent taxes, another investor could purchase
the next years taxes and buy out your portion. Therefore, your lien
would be redeemed.
Part 2, the Arizona lists will be out and we will go through an
online auction list, do some screening and get ready for a sale.
Be sure to read and review the live examples of screening tax sale
lists shown in the November and December, 2012 Premium Reports. Work on
your goals and send them to me. Also, send me any questions.