When is the earliest I can send an effective 30 day notice to Arizona Deedbeats?

Question

I own two tax lien certificates in an Arizona county for which the three year redemption period will end in February 2024. My plan is the following:

1) Send the the 30 day Notice to Foreclose on my own.

2) Try to locate and contact the owners on my own to remind them to redeem the property or, in the alternative, deed it to me for dirt cheap, subject to the tax lien.

3) If either property remains unredeemed and not deeded to me after some TBD date in the first half of 2024, ask my lawyer to start the foreclosure on it.

What happens if I send the 30 day Notices on January 1, 2024, notifying them of my intent to start foreclosure "on or after March 1, 2024"? Would that enable my lawyer to start the foreclosure process, if need be, any time between March 1, 2024 and July 1, 2024? Or does the 30 day notice need to be sent AFTER the expiration of the redemption period in order to be effective?

Abdenour Achab · Answer

Thank you all for chiming in. @Will Sifert, here is a brief description of the foreclosure process in Arizona: @Chris Brevik, I am not going to ask the county treasurer's staff as I suspect they know the generic stuff (such as waiting three years after the lien on the property was first brought to sale), but not the nuances about whether or not one is allowed to mail notices 6 to 7 weeks before the expiration of the 3 years redemption period. I have read once in an internet forum than one investor got fined $200 per contact after he sent mass mailing to many owners before the expiration of the redemption period. If I remember correctly, the state was Missouri. Hence my concern and the original question in the forum. But I am only going to contact two homeowners. So, even if that ends up being a seminar for me, it won't be an expensive one. @Jerry K., I have never actually foreclosed on a tax lien in Arizona. Not on my own. Not using an attorney. But I did follow, in 2020, what you recommended: I had an attorney send out the mailings for two property owners. His assistant sent me copies of the mailings. And I have mastered the Monkey See Monkey Do technique.I plan to do the mailings for two homeowners ASAP after January 1, 2024. I will update the thread if I find out anything about whether:A) There is any penalty for contacting the homeowners before the expiration of the redemption period.B) My lawyer accepts to use my mailing(s) as a starting point.C) If my lawyer decides to re-do the mailings himself, whether that's because I sent them before the expiration of the redemption period, for another reason, or for both reasons.

Jerry K. · Answer

Abdenour, Good to see you're still investing in liens. If this will be your first foreclosing of liens in AZ, I suggest using your attorney to do the 30 Day Notice of Foreclosure, but ask them what the process is so you know everything they do. You have to make sure you not only send it to the owner listed on the deed, but you have to send it to all the lien holders on the parcel. There could be HOA liens (even if just a vacant lot) any mechanic liens, city liens, etc. If the owner is deceased, you have to make sure the estate is notified. Maybe there is a line of credit where the parcel is held as collateral with a lien on the property. Even if it is only the owner listed, you have to make sure you have the correct address. Registered mail is good so that you can prove they received it or that they were no longer at the address listed. You have to make sure you have the letter worded correctly. A judge may throw out your letters if they are not worded correctly or if you did not make a reasonable attempt to locate the owner and lien holders. It may make sense to pay the extra $75 bucks or so to have the attorney do the letter. That is one of the only fees you will not get reimbursed for if the owner pays before the 30 days is up, but for a first foreclosure, it is worth the cost. Also, ask your attorney if they will handle the case if you do the 30 Day Notice yourself. Some may balk because they don't know if you did everything correctly. You have a decent amount of money tied up if you paid the taxes for 3 years (technically 4 since you can't foreclose until the end of the third year and another year will be due) - and you don't want to mess up the foreclosure by not doing the 30 Day Notice correctly.

Chris Brevik · Answer

Best place to start would be to reach out to the county treasurer's office where your tax lien(s) are held for guidance on the deed redemption process as the process could vary by county.Sometimes within the disclaimers they state, your Certificate of Purchase (CP) does not give you a right to contact the property owner for any reason.In Maricopa county, when a property owner fails to redeem the CP prior to the expiration of three years from the date the parcel was first offered at sale. At the expiration of the three year period, the investor may file an “Action to Foreclose” in the Superior Court of Maricopa County three years from the date of the sale.apply for a court ordered deed to the property (judicial foreclosure)

Abdenour Achab · Answer

Oops ... I didn't include the link to the YouTube video in my first reply. Let's try this again. If you don't see a video below, go to YouTube, and look for a a 22 minute video titled "Foreclosing on a Tax Lien" in the "Arizona CourtHelp" channel. An attorney explains the process in that video.@Will Sifert, here is a brief description of the foreclosure process in Arizona:

Will Sifert · Answer

I've read the Arizona state statutes a few times but it has been a while and I don't remember off hand. There is a lot of information there that will tell you exactly what needs to be done as far as when to send out the notices. Yes, some states you are not allowed to contact the owner during the redemption period, some you are suppose to and some it doesn't matter either way.... varies greatly from state to state.

Will Sifert · Answer

Please let us know how it goes I will be in the same situation in another year with some tax liens. I haven't been investing in AZ long enough to know the judicial foreclosure process well yet.