Phoenix, AZ · Member since 2012 · 24 posts · 10 votes
I've noticed a few on here are versed in AZ tax liens. I have a couple tax liens that can now be foreclosed on (5 years back taxes) and I'm wondering if anyone does the foreclosure process without the expense of an attorney.
Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
13y
Helene,
Been on the road and just getting caught up for the last week on BiggerPockets. I see Justin has a contact to provide you the advice you need.
I've been buying lines in AZ for the past 4 years. Just coming up on my first liens that I can foreclose on this February. I've bought tax liens and tax deeds in IL in the past and like all states, IL and AZ are different.
I noticed on the Coconino county website they have a Judicial Tax line Foreclosure Package. http://www.coconino.az.gov/uploadedFiles/Treasurer/Revised_Completed_2008_Foreclosure%20Packet.pdf
You could do this yourself, just as anyone can represent themselves in court if they want. But I always follow the adage, "A person who represents themselves in a legal matter, has a fool for a client."
In AZ you must send a Notice of Intent to File a Foreclosure 30 days before you file the actual Foreclosure action. This goes to the property owner(s), their heirs (if owner deceased), and all lienholders. This letter alone drives most people to pay the back taxes and interest. There is a some detective work to get current addresses and prove you made a reasonable attempt to locate all parties.
From there you proceed with the Judicial Foreclosure process. The Coconino package has a simplified checklist spelling out the process.
Good luck and let us know how the process goes. I'll be blogging on my Biggerpockets blog about the process as I go through it.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
That may be up to local custom and state requirements, I'd contact the Assessors office and see if you can perfect your lien interest without an attorney.
Phoenix, AZ · Member since 2012 · 24 posts · 10 votes
13y
It has to be foreclosed on. Once the lien has hit a certain period the lien holder can foreclose but the county will not get involved or perfect the lien. Which is why I'm asking if anyone has done it on their own :-)
Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
13y
Helene,
Been on the road and just getting caught up for the last week on BiggerPockets. I see Justin has a contact to provide you the advice you need.
I've been buying lines in AZ for the past 4 years. Just coming up on my first liens that I can foreclose on this February. I've bought tax liens and tax deeds in IL in the past and like all states, IL and AZ are different.
I noticed on the Coconino county website they have a Judicial Tax line Foreclosure Package. http://www.coconino.az.gov/uploadedFiles/Treasurer/Revised_Completed_2008_Foreclosure%20Packet.pdf
You could do this yourself, just as anyone can represent themselves in court if they want. But I always follow the adage, "A person who represents themselves in a legal matter, has a fool for a client."
In AZ you must send a Notice of Intent to File a Foreclosure 30 days before you file the actual Foreclosure action. This goes to the property owner(s), their heirs (if owner deceased), and all lienholders. This letter alone drives most people to pay the back taxes and interest. There is a some detective work to get current addresses and prove you made a reasonable attempt to locate all parties.
From there you proceed with the Judicial Foreclosure process. The Coconino package has a simplified checklist spelling out the process.
Good luck and let us know how the process goes. I'll be blogging on my Biggerpockets blog about the process as I go through it.
Phoenix, AZ · Member since 2012 · 24 posts · 10 votes
13y
Hi Jerry,
Thanks. I actually saw the coconino packet also. I was in RE for many years so google is the first place I start my research :-) It's a great tool.
But I just wondered if anyone actually does it in this state themselves. As you said it is different then many others.
Since I hold these in my IRA (which is low on funds after this years tax payments) I'm trying to figure out the most cost effect way to do it as attorneys want $2200 and up for each property.
I do have an appt for a consultation with a RE attorney next week to get some more detailed info but I doubt I'll be able to have him handle it. My hope is I can get him to review everything I send/ file before I do it for a flat fee :-)
I've held tax liens here for about 6 -7 years now and these are the first that haven't been redeemed that may actually be worth forclosing. I have one other but the value of the lot isn't worth the money I have into the taxes once the market dropped. So that has just been a loss for me. It's been up for sale by the county for the last couple years but has no value vesus taxes owned so hasn't been picked up by anyone. All others liens I've have been paid within a year or so of it being sold.
Phoenix, AZ · Member since 2012 · 24 posts · 10 votes
13y
Holidays got in my way but early Dec I talked to an attorney who has agreed to oversee the paperwork for a flat fee.
Now I just need to get it all done. So I'm thinking of trying to find a VA or maybe just a paralegal to type it up since I know the spacing etc has to be a certain way in legal docs.
But first I think I'm just going to write a letter to the owners and see if they would sign over for minimal amount like $500 or maybe $1000.
Tucson, AZ · Member since 2013 · 116 posts · 22 votes
13y
Helen: I'm in Tucson and do all my tax lien foreclosures (pima & pinal counties) it's very easy, I checked out the Coconino county forms for foreclosing and you can cut & paste their forms into Microsoft Word and enter your own info. here's link: http://www.coconino.az.gov/DocumentCenter/View/53
What I usually do (and it's required by law) is to send the person on the tax bill a letter, you are smart to offer some $$$ (include a quitclaim deed & SASE) to save yourself the trouble and court-filing fees. I usually send the letter first class because often it will come back to you because the person is deceased or moved. If you don't hear from them in two weeks, I'd resend the letter Certified, return receipt, as required by law.
You also need to do a title search, which in some Counties is easier than others . . . Pinal County was very hard and I made several mistakes there, which required me to go back & quiet title. Pima County is easy. You also should notify the lienholders/mortgage (if any), if you don't foreclose them, you will have a cloud on your Treasurer's Deed title.
Phoenix, AZ · Member since 2013 · 42 posts · 10 votes
13y
We do a lot of them but we always use an attorney. We do some of the initial stuff (30 day notices and some other stuff) but leave the rest for the lawyers. It is just better, even the lawyers have had issues in the past.
Though we actually purchase liens on the secondary market here in Maricopa County rather than purchasing at auction and waiting.
Investor · Gilbert, AZ · Member since 2015 · 96 posts · 46 votes
10y
I have some tax liens in Maricopa County going back Feb 2013 purchase date. I would like to try and do the foreclosure . I have 7 of these . Has anyone found a paralegal or something like that to at least do the preliminary service?
I have some tax liens in Maricopa County going back Feb 2013 purchase date. I would like to try and do the foreclosure . I have 7 of these . Has anyone found a paralegal or something like that to at least do the preliminary service?
Hi Scott, the preliminary service involves sending a letter to the owner of record. See my comment above, which also has sample forms and instructions for foreclosing. The hardest part is notifying interested parties and potential heirs. It has gotten harder because of unprofessional tax lien foreclosures leading to additional lawsuits by heirs who have not been properly notified. It has become such a pain in the *** that I have lost interest in tax liens. The biggest problem is wasting money on the preliminary stuff when the owner pays off.
I noticed in my response, above I said return receipt is necessary. No, only certified letter but you can save money by sending first-class letter and then following up with the certified letter because usually the owner has moved and you'll have to use people-search to try and find a new address.
I've noticed locally (Tucson) has a paralegal who does it.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
@Scott Mclaren I wouldn't consider foreclosing on liens myself. You will never get title insurance if you do it yourself which basically means you won't be able to ever sell the property. Tax sale foreclosures can be complex. Most attorneys are not capable of dong them right. You not only need an attorney, you should use an attorney that specializes in tax sale work.
I don't know about AZ but a ton of cases get kicked out for minute details. My attorney gets them reconsidered because he know the rules of evidence and procedures inside and out as well as specific tax sale law and precedents.
As alluded to above if you own the liens in an entity you may not be able to do the work your self period. In many states only an attorney can represent and do legal work for an entity like an LLC.
Tucson, AZ · Member since 2013 · 116 posts · 22 votes
10y
That's another reason I dislike tax liens: I used to be able to gang up "unrelated parties" on one lawsuit i.e., foreclose two or more tax liens in one lawsuit, at least that is the way it is in Pima County. Plus, the costs of filing a lawsuit have gone up from like $125 to $300!
Also, as said above, title insurance may be hard to find and, if the lien is in the name of an LLC or not in your name, you have to reassign the lien to yourself because in AZ you can't represent a company even if you're the sole owner unless you're a lawyer.
Phoenix, AZ · Member since 2012 · 24 posts · 10 votes
10y
Rachel this was done for my self directed IRA so thetrust company was listed. I mention it because I'm thinking the rules change depending on the county.
I was able to put both lawsuits in one filing and the trust company ( which I don't own) was listed in the suit and is listed on the judgement deeds I recieved.
No I would not consider doing the foreclosure myself, just the initial noticing. I am just now looking for the right attorney to do the foreclosure.
I wouldn't even do the initial noticing myself. A full title search includes much more than just a look at the land records, you need to search estates and death notices, heirs, bankruptcy search, and judgement search.
My tax sale attorney has other non tax sale attorneys as clients. These attorneys sent out notices and did them wrong. He had to redo them. A bankruptcy of just one defendatnt holds up prosecution of the entire case. All you have to do is miss one bankruptcy and your whole case is in the dumper.
No I would not consider doing the foreclosure myself, just the initial noticing. I am just now looking for the right attorney to do the foreclosure.
I wouldn't even do the initial noticing myself. A full title search includes much more than just a look at the land records, you need to search estates and death notices, heirs, bankruptcy search, and judgement search.
My tax sale attorney has other non tax sale attorneys as clients. These attorneys sent out notices and did them wrong. He had to redo them. A bankruptcy of just one defendatnt holds up prosecution of the entire case. All you have to do is miss one bankruptcy and your whole case is in the dumper.
Arizona is very specific about what goes in the notice and who it goes to. You don't have to do a full title search for initial noticing. You only have to send notice to the owner of record according to the assessor, the treasurer (if the addresses vary), and the parcel location. There are requirements for what has to be in it, but title search isn't required. We elect to have an attorney do it anyway, but it isn't a very complicated part of the process by a long shot.
Bankruptcy just ends everything anyway. If something is in bankruptcy then any plans to foreclose are off the table.
Glendale, CA · Member since 2017 · 1 post · 0 votes
9y
Hello Guys,
Im somewhat of a new investor in the AZ tax lien market. But, i have 2 tax liens both of which are owned by 2 separate holdings corporations. There technically isn't a next of kin for a corp. Whats the case then? Who would you have to send the demand letter to? Is it only to the address on the Tax Summary page? What type of "due diligence" would one have to put in in this case? Any direction will be greatly appreciated!
Chandler, AZ · Member since 2017 · 1 post · 0 votes
8y
Hi All,
I'm new to the forum and looking for info on foreclosing a tax lien. I'd like to do it myself if possible. I know my way around legal forms and court proceedings somewhat, having filed my own evictions and garnishments in the past.
A while back, Jerry K posted a link to a foreclosure forms packet at the Coconino County website, but the l;ink is no longer valid. Does anyone know of some place else I can get a foreclosure DIY packet?
I'm new to the forum and looking for info on foreclosing a tax lien. I'd like to do it myself if possible. I know my way around legal forms and court proceedings somewhat, having filed my own evictions and garnishments in the past.
A while back, Jerry K posted a link to a foreclosure forms packet at the Coconino County website, but the l;ink is no longer valid. Does anyone know of some place else I can get a foreclosure DIY packet?