Tax Lien Foreclosures

In Arizona, when property owners fail to pay their taxes, the county treasurer places a lien on the property. This lien is formalized through a Certificate of Purchase, which establishes a secured claim on the property. Because these liens have priority over most other claims, they represent a compelling investment opportunity for those seeking consistent returns.

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Once a property tax lien has remained unpaid for the statutory period, the county treasurer offers it for sale to the public. Investors can purchase a Certificate of Purchase by paying the overdue taxes, interest, and associated fees. By acquiring a certificate, the investor secures a lien on the property and gains the right to receive repayment plus statutory interest should the property owner redeem the lien.

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Arizona law grants property owners and other interested parties the right to redeem a lien within three years of the certificate sale. Redemption requires payment of the lien amount and any accrued interest to the certificate holder. When a lien is redeemed, the investor recoups the initial investment along with interest, while the property remains with its original owner.

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If the lien is not redeemed within the redemption period, the certificate holder may initiate judicial foreclosure through Superior Court. This involves filing a lawsuit to foreclose the right of redemption, identifying and notifying all interested parties, and following specific legal protocols. Navigating these procedures requires experience and attention to detail to ensure compliance and successful resolution.

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Redemption can occur even after a foreclosure action is filed but before judgment is entered. In these instances, the redeeming party pays the lien and accrued interest, allowing the certificate holder to recover their investment. Typically, litigation costs are addressed through the redemption process.

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If no redemption occurs after the judicial process, the court may issue a judgment transferring ownership of the property to the certificate holder, who then assumes legal title. At this point, the new owner is responsible for legal fees and associated costs, which can include filing and recording fees, service of process, investigative work, and publication when required. Legal fees are tailored to the complexity of each case and may vary based on the number of foreclosures involved.

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Our extensive experience allows us to help clients carefully assess opportunities, mitigate risks, and navigate every aspect of Arizona tax lien foreclosures. We have worked with a diverse range of investors, from individuals entering the market for the first time to seasoned investors managing large-scale portfolios. We combine practical investing insight with rigorous legal expertise to provide comprehensive, results-oriented guidance.

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If you are considering investing in tax liens or have questions about the foreclosure process, we invite you to contact our office to set up a consultation. Our team is happy to provide personalized guidance and answer any questions to help you make informed decisions.