The TLDR version of that web page and other related web pages is that, in Arizona, if you start a foreclosure action against a homeowner who has equity of more than $2,500 in his house using a tax lien certificate, the "defendant" can ask for excess proceeds during the foreclosure action.

It also covers your legal fees simply to defend a bogus lawsuit. 1 million is standard for each of my properties.

Do not work with people who defend criminals especially when they do NOT have the facts on their side.

If you start with multiple LLCs and Series LLCs, you might find that those nested and complex entities don't protect you from lawsuits, they just create more defendants. 

The plaintiffs allege that the defendants, including Wettengel, misappropriated $54 million of syndication proceeds intended for acquiring commercial real estate through DSTs.

That's why the new law about defendants ability to request an Excess Proceeds sale is leading me to question whether it's still worth bidding on tax liens secured by livable homes in Arizona.I will know the answer to that question by the end of 2027.150 liens on good properties (the other 9 or so were mistakes due to lack of due diligence) have already turned into 46 in just a year.

(we already have one).But how do we defend ourselves against any type of professional negligence?

These penalties apply whether the defendant is the principal actor, attempted the offense, or conspired to commit fraud.

Even if you are completely innocent and can prove it, just defending yourself is costly and you have already lost.

Heck, I used to defend it.