Foreclosing a Yavapai County, AZ Tax Lien Certificate
Realtor · Fort Worth, TX · Member since 2015 · 12 posts · 12 votes
Couple questions for the BP audience:
1. Anyone here gone through the foreclosure process in Yavapai? Even if you've just partially gone through the process and sent a notice of intent, I'd be interested in hearing from you.
2. Did you go at it alone or hire a real estate attorney? If you hired, what was their costs and was it worth it? The real estate attorneys I've cold-researched don't exactly teach the process, what to expect or what their costs are. I've received numerous bulk mailings from attorneys that know I have a 3yr tax lien but I'd probably take a referral than a company that mails me out of the blue.
AZ Law
42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment
@JR Haseloff If this is your first tax lien foreclosure, I highly recommend using an attorney who specializes in tax lien foreclosures in Arizona. I have done only one in Pinal county. I did the Notice of Intent to Foreclose through the attorney.
Can you do it yourself? Yes, but if you don't do it correctly, then it can be thrown out of court. I can private message you an attorney I used.
@JR Haseloff If this is your first tax lien foreclosure, I highly recommend using an attorney who specializes in tax lien foreclosures in Arizona. I have done only one in Pinal county. I did the Notice of Intent to Foreclose through the attorney.
Can you do it yourself? Yes, but if you don't do it correctly, then it can be thrown out of court. I can private message you an attorney I used.
@JR Haseloff Did you follow through on the tax foreclosure? How did it go?
@JR Haseloff Since AZ is now a Judicial foreclosure state it requires foreclosing before a Judge. You can hire an Attorney and the average foreclosure cost is approximately 3500 dollars. The initial point will be the demand letter or the Notice of Intent that will be sent out and that can be as little as 50.00 to send. Most lawyers will request a retainer of about 1500 and it could be done in that much if they don't charge you any more than that. It really depends on the lawyer you use. It must be past the three year redemption period and the lien itself will be two years delinquent before it becomes a tax lien, meaning a 2017 delinquent tax will not be sold until 2019 and then it won't be past the redemption period until 2021. Most states will sell their tax liens when they are a year delinquent but in AZ they wait until they are two years delinquent and then sell the tax liens.
After the notice of intent or notifications get sent out to the property owner then there is an allotted time necessary for the owner to react if they want to redeem. There will also be a title search performed. If the first thirty days goes by another notification can be sent out and then after the second one if there is no response in another 30 days then you can move forward with the foreclosure. The foreclosure involves filing a foreclosure suit with the court to start the proceedings. A quiet title can be performed at the same time which makes the foreclosure better than an administrative foreclosure because you can get title insurance and secure your property without anything else coming up afterwards. Keep in mind that and IRS lien is equal to and is also a first position lien and does not go away. This must be dealt with. Also, encumbrances that come from code violations, water/sewer bills, or any other special assessment will go along with the property and does not get wiped out from a tax foreclosure. The state statues are easy to understand :
42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment
A. Except as provided in subsection B of this section, at any time beginning three years after the sale of a tax lien but not later than ten years after the last day of the month in which the lien was acquired pursuant to section 42-18114, if the lien is not redeemed, the purchaser or the purchaser's heirs or assigns, or the state if it is the assignee, may bring an action to foreclose the right to redeem. The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action. If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided herein shall be extended twelve months following the termination of such prohibition.
B. For a subsequent year certificate of purchase by assignment issued under section 42-18121, subsection B, at any time beginning three years after the date the subsequent year certificate of purchase was assigned but not later than ten years after the last day of the month in which the tax lien was assigned under section 42-18121, if the lien is not redeemed, the purchaser or the purchaser's heirs or assigns, or the state if it is the assignee, may bring an action to foreclose the right to redeem the lien represented by certificates of purchase acquired by assignment and held by the party that filed the action to foreclose. All certificates of purchase held by other parties remain in place. The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action. If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided in this subsection shall be extended twelve months following the termination of the prohibition.
After the court action:
A. On receiving a certified copy of a judgment foreclosing the right to redeem and a fee of fifty dollars per parcel, the county treasurer shall execute and deliver to the party in whose favor the judgment was entered a deed conveying the property described in the judgment.
B. The deed shall include the following information:
1. The date, court action number and name of the judgment.
2. The name of the purchaser.
3. The property description.
4. The date of the conveyance.
5. A formal acknowledgment by the treasurer.