Tax Lien Reseach in Arizona

[Jared Sutherland]

What are the best ways to research properties for Tax Liens? Do I need to get a title search done?

Thanks!

[Jerry K.]

Thanks for tagging me @Ned Carey. @Jared Sutherland, Ned is spot on saying a title search to buy an AZ tax lien is most likely not necessary. You want the parcel/property to be worth more than 3 years of taxes and interest.

1)Very few liens ever go to foreclosure

2) Arizona has a 3 year redemption period on tax liens so there are many months for other liens to be added to the parcel before you ever get to a tax lien foreclosure. (That is why you want the parcel to be worth more than 3 years of taxes - I actually use 4 years of taxes since the foreclosure takes time and you may have to pay a fourth year of taxes before you get the property.)

You'll want to look at title issues closer if you ever get to the foreclosure process. AZ requires a "30-day" letter before the actual tax lien foreclosure begins. This letter basically tells the owner and any other lien holders that a tax lien foreclosure would start in 30 days. It is meant to get owners to pay before the foreclosure fills up the court dockets. If the taxes are not redeemed at the end of the 30 days, that is when the actual foreclosure begins and your lawyer will notify all lien holders at that point.

What is your goal in buying a tax lien; getting the underlying property or just the interest earned on the lien?