Arizona Counties
Arizona State Auction Process
Arizona operates as a property tax lien state, allowing individual investors to purchase tax liens on properties with delinquent taxes. This presents an opportunity for investors to earn a return on their investment when the tax lien is repaid by the property owner. Investing in Arizona tax liens can be lucrative, with potential returns of up to 16% when the tax lien is redeemed by the property owner. In some cases, the tax lien certificate holder can even become the property owner if the owner fails to redeem the lien.
Arizona follows specific tax lien sale procedures, which are important to understand if you are participating in such auctions.
Arizona follows specific tax lien sale procedures, which are important to understand if you are participating in such auctions.
State Lien Process
1. Timing of Tax Lien Sales: Tax lien sales in Arizona take place annually in the month of February. This is when interested bidders have the opportunity to acquire tax liens on delinquent properties. The specific date and details may vary by county.
2. Ownership of Tax Liens: When a bidder wins a tax lien sale in Arizona, they do not immediately gain ownership of the property. Instead, the purchaser obtains ownership of the tax lien itself, along with the right to collect the outstanding tax debt and any accrued interest.
3. Determining the Winning Bidder: The winning bidder at the tax lien sale is determined based on several factors. The bidder must pay the entire amount of the delinquent taxes, including interest, penalties, and charges owed on the property. Additionally, the winning bidder is the one who offers the lowest interest rate on the tax debt. This approach differs from some other states, where the highest bid for the lien itself determines the winning bidder.
4. Potential Foreclosure of Tax Liens: If the property owner fails to pay off the tax lien and the accrued interest, the purchaser of the tax lien has the right to initiate foreclosure proceedings. Through the foreclosure process, the lienholder can obtain ownership of the property.
5. Unclaimed Tax Liens: In cases where no bids are made for a tax lien, the county treasurer may assign the lien to the state. The state can then apply to the county treasurer to obtain title to the property if the debt remains unpaid.
2. Ownership of Tax Liens: When a bidder wins a tax lien sale in Arizona, they do not immediately gain ownership of the property. Instead, the purchaser obtains ownership of the tax lien itself, along with the right to collect the outstanding tax debt and any accrued interest.
3. Determining the Winning Bidder: The winning bidder at the tax lien sale is determined based on several factors. The bidder must pay the entire amount of the delinquent taxes, including interest, penalties, and charges owed on the property. Additionally, the winning bidder is the one who offers the lowest interest rate on the tax debt. This approach differs from some other states, where the highest bid for the lien itself determines the winning bidder.
4. Potential Foreclosure of Tax Liens: If the property owner fails to pay off the tax lien and the accrued interest, the purchaser of the tax lien has the right to initiate foreclosure proceedings. Through the foreclosure process, the lienholder can obtain ownership of the property.
5. Unclaimed Tax Liens: In cases where no bids are made for a tax lien, the county treasurer may assign the lien to the state. The state can then apply to the county treasurer to obtain title to the property if the debt remains unpaid.
Foreclosure Process in Arizona
The foreclosure process in Arizona can take either a judicial or nonjudicial route, with nonjudicial foreclosure being the most common method used for residential properties. Many Arizona deeds of trust have a provision that requires the lender to send a notice, commonly called a “breach letter,” informing you that the loan is in default before the lender can accelerate the loan. The breach letter gives you a chance to cure the default and avoid foreclosure. Apart from that, the foreclosure process in Arizona follows the following steps-
1.Notice of Sale: The trustee, appointed by the lender, records a notice of sale in the land records. The sale date cannot be earlier than 91 days from the date of recording the notice.
2.Notice to the Borrower: The trustee is required to send a notice of sale to the borrower through certified mail within five business days of recording the notice.
3.Notice by Publication: The trustee also publishes the notice of sale in a newspaper for four consecutive weeks, posts it on the property at least 20 days before the sale (if possible without breaching the peace), and posts it in the court building.
4. Foreclosure Sale: The foreclosure sale is a public auction held at the specified time and place mentioned in the notice of sale. It takes place on a day other than a Saturday or legal holiday between 9:00 a.m. and 5:00 p.m. Mountain Standard Time.
5.Credit Bid: During the sale, the lender typically makes a credit bid. This means they can bid up to the total amount owed, including fees and costs, or they may choose to bid less.
1.Notice of Sale: The trustee, appointed by the lender, records a notice of sale in the land records. The sale date cannot be earlier than 91 days from the date of recording the notice.
2.Notice to the Borrower: The trustee is required to send a notice of sale to the borrower through certified mail within five business days of recording the notice.
3.Notice by Publication: The trustee also publishes the notice of sale in a newspaper for four consecutive weeks, posts it on the property at least 20 days before the sale (if possible without breaching the peace), and posts it in the court building.
4. Foreclosure Sale: The foreclosure sale is a public auction held at the specified time and place mentioned in the notice of sale. It takes place on a day other than a Saturday or legal holiday between 9:00 a.m. and 5:00 p.m. Mountain Standard Time.
5.Credit Bid: During the sale, the lender typically makes a credit bid. This means they can bid up to the total amount owed, including fees and costs, or they may choose to bid less.
What is a breach letter?
In Arizona, a breach letter is a notification sent by the lender to the borrower indicating that the borrower has violated the terms of their mortgage agreement. It serves as a formal notice of breach and typically outlines the specific defaults or non-compliance issues that have occurred.
The breach letter is an important step in the foreclosure process as it informs the borrower of their default status and provides them with an opportunity to rectify the situation. It will typically include information about outstanding payments, late fees, and any other relevant charges owed by the borrower.
The letter also informs the borrower of the potential consequences if they fail to address the breach within a specified timeframe. These consequences may include the initiation of foreclosure proceedings and the eventual sale of the property.
Receiving a breach letter does not automatically lead to foreclosure, but it is a critical warning sign that the borrower’s failure to resolve the default may result in the loss of their property. It is crucial for borrowers to carefully review the breach letter, understand the specific violations mentioned, and take appropriate action to address the issues outlined in order to avoid foreclosure. Seeking legal advice or consulting with a housing counsellor can be helpful in navigating the foreclosure process and exploring potential options for resolving the breach.
The breach letter is an important step in the foreclosure process as it informs the borrower of their default status and provides them with an opportunity to rectify the situation. It will typically include information about outstanding payments, late fees, and any other relevant charges owed by the borrower.
The letter also informs the borrower of the potential consequences if they fail to address the breach within a specified timeframe. These consequences may include the initiation of foreclosure proceedings and the eventual sale of the property.
Receiving a breach letter does not automatically lead to foreclosure, but it is a critical warning sign that the borrower’s failure to resolve the default may result in the loss of their property. It is crucial for borrowers to carefully review the breach letter, understand the specific violations mentioned, and take appropriate action to address the issues outlined in order to avoid foreclosure. Seeking legal advice or consulting with a housing counsellor can be helpful in navigating the foreclosure process and exploring potential options for resolving the breach.
THINGS TO REMEMBER:
- Arizona is a property tax lien state.
- It has both judicial and non-judicial foreclosures.
- Arizona lenders typically need between 90 and 120 days to foreclose on a property in a non-judicial foreclosure process that is uncontested by the borrower.
- It’s important to note that Arizona is a title theory state. This means that your property title will remain in the trust of your lender until your loan has been satisfied. This is different from a lien theory state, where the title is held by the borrower
- Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. Arizona, however, doesn’t have a law permitting you to redeem your home after a nonjudicial foreclosure.
Online Auction Resources
- Bid4Assets
- Auction.com Arizona Residential Listings
- Xome
- ServiceLink Auction Arizona
- Hubzu Auctions
- RealtyBid
- HUD Homes USA
- GovEase Auctions
- AllAuctionSales
- Williams & Williams Real Estate Auctions
- Concierge Auctions – Upcoming Auctions
- Bank Foreclosures Sale – Arizona
- AuctionAZ.com
- United Country AZ – Featured Properties
- RealtyTrac Arizona Foreclosure Auctions
- Arizona Property Auctions
- GovDeals Arizona Auctions
- Maricopa County Auctions and Leases
- AllHUD.net
- LandSearch Arizona Auctions
- US Treasury Real Property Auctions
| County | Auction Link |
|---|---|
| Apache | https://apache.arizonataxsale.com/ |
| Coconino | https://coconino.arizonataxsale.com/ |
| Maricopa | https://maricopa.arizonataxsale.com/ |
| Mohave | https://mohave.arizonataxsale.com/ |
| Navajo | https://navajo.arizonataxsale.com/ |
| Pima | https://pima.arizonataxsale.com/ |
| Pinal | https://pinal.arizonataxsale.com/ |
| Yavapai | https://yavapai.arizonataxsale.com/ |