AZ Tax Lien Foreclosure

2 Replies

Hello BP World,

I currently hold a tax lien certificate that I bought last year in the Yavapai Cty Tax Sale. So far we're going into 1.5 yrs of the redemption period and I just wanted to get a feel of what steps I need to take in order to foreclose on the property should the owners fail to redeem the lien. All comments and recommendations are welcome. Thanks.

@David Ramos I buy tax liens in AZ. Great state but the long 3 year redemption makes it tough to plan paying sub taxes (if needed - some counties are changing so you don't have to pay subsequent years taxes to keep your lien in force).

When you complete that 3rd full year from the date of your original tax lien, then you need to send a certified letter to the owners and other lien holders (mortgage, mechanic liens, etc.) of your intent to foreclose. They have 30 days to respond/pay off the lien and interest.

If nobody pays the lien, then you can begin a judicial foreclosure ($1,800k - $2,500k are typical fees when using a lawyer). That can take several months - vacant land is usually a shorter term than if there is an improvement on the property.

The owner/lien holders can still redeem in that time foreclosure time frame. In most counties, they have to pay the lien, interest and your attorney fees. The one fee they don't have to pay is the cost of the "intent to foreclose" letter.

This has been my experience anyway. Others on BP have talked about foreclosing without a lawyer, but for me, it's too easy to miss something that needs to be completed/filed and each county can have some slight differences in how they want something done for foreclosure. I use a lawyer.

Would love to hear some of the details on your lien purchase.

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