I'm considering buying a few tax liens in Maricopa and one question I have not been able to find the answer to is: what happens when the lien holder files for the foreclosure (however unlikely, it happens)? In some states, the lien holder gets the deed, in other states the deed will be issued but sold at the auction (aka "upset auction"). How does it work in Arizona? Does anyone have first-hand experience with foreclosing on liens in AZ?
Try this Foreclosure
Originally posted by @Boyd McClean :
Try this Foreclosure
Thanks Boyd! The link has lots of info but they mostly talk about the non-judicial foreclosure and barely touch on the question I'm trying to clear... Have you ever had to foreclose on Arizona lien?
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I have a situation in Fl that I am getting advice on and I don't live in that state.
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@Josh Crawford I assume you mean real estate tax liens? I invest primarily in Arizona real estate tax liens, but not in Maricopa county. You'll need to read the rules for the state and the county. Maricopa has a rule or two different from the rest of the state when it comes to real estate tax liens.
However, I do believe that the person who forecloses on the lien in Arizona, does get the property if it is not redeemed.
Here are the state statutes regarding real estate tax liens
Here are some materials specifically for Maricopa county
Talking with a lawyer who specializes in AZ tax lien foreclosures is your best source of information.
@Jerry - Thank you for the links! By the way, out of curiosity - is there a particular reason you prefer other counties over Maricopa?
@Josh Crawford In other AZ counties only one person can hold a real estate tax lien on a parcel. If I'm not mistaken (and I frequently am on counties I don't invest in) in Maricopa, one person can buy the tax lien for, say 2013, and if the owner doesn't redeem and the lienholder does not pay the next year taxes either, then a second lien is sold on the property for 2014. The one who holds the oldest lien has the advantage of foreclosing earlier than subsequent lien holders. (however most redeem before foreclosure)
Plus, there is a lot less competition in other AZ counties. That means (possibly) higher interest rates.
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