Tax Lien Investment in AZ (Maricopa County)

[Laura Tabarez]

Hello everyone!

I am looking for feedback on tax lien investing in AZ. I went on to the Maricopa County website and realize they have an auction coming up in February 2020. The site has already opened for registration and you can preview the sales. I looked at several properties and they seem to be occupied. I have several questions I'm hoping someone can help me with. 

How would we find out if they are occupied by owners or renters? Also, if they are renters, would we simply take over the rental income? There were some that were vacant. I know in some states (like AL) you are able to rent out the property as soon as you purchase the tax lien. Does anyone know if it is the same in AZ? I would appreciate any feedback before I make bidding decisions in Feb. I plan to start with low percentage bids just to get some hands-on experience but would appreciate any feedback. 

Thanks in advance! :)

[Dan Gauthier]

Originally posted by @Kyle W.:

@Dan Gauthier Since you are an attorney, could you clarify the above for me? Am I on the correct track in relations to tax lien purchasing and foreclosing? I tried to self study using as many resources as possible, but clarification from you would help a lot. I do not want to put out incorrect information again. Thanks

Sure. The tax lien foreclosure statutes are A.R.S. 42-18201-18208. It's a process set out by statute and a high-level summary of the foreclosure portion is: (1) starting 3 years from the date of the tax lien sale (but not more than 10 years) and after having sent the required notice, the holder can file a foreclosure action; (2) assuming the holder can show the tax lien sale properly occurred and there has been no prior redemption, the judge orders the county treasurer to issue a treasury deed in the holder's favor, subject to right to appeal. There is no auction-bid component.

Keep in mind that the lien can be redeemed by the owner or anyone with a property interest (including another lien holder) at any time prior to the judge entering judgment in the lawsuit. Hope this clarifies.