Are there "upset auctions" in AZ?

[Josh Crawford]

Greetings everyone!

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?

Thanks!

Josh

[Jerry K.]

@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.