Arizona Tax Liens

 Sale Type:  Tax Lien Certificates
 Interest Rate:  16 % APR
 Bid Method:  Bid down interest rate
 Redemption Period:  3 Years
 Sale Date(s):  February
 Statute Section(s):  Title 42, CH 18
 Over-the-Counter:  Yes
 State Website:  http://www.az.gov/

Arizona State Overview

Arizona utilizes tax lien certificates to collect delinquent property taxes. Investors are drawn to Arizona due to the 16 percent interest rate. Investing is made simple in Arizona because most of the counties make the lists available online and provide online resources for researching.

Tax lien sales are held annually in the month of February. It is required that investors register before the auction starts, and in most cases the counties will allow you to register the day of the auction. When registered, the investors will be given a bidder number, which will be used to identify the investor during the tax lien sale.

Arizona has a redemption period of 3 years. The bidding process is a Bid Down Interest, which allows bidders to compete by lowering the rate of return they are willing to accept.

Arizona rate of return is 16% on Tax Lien Certificates.  Property owners have a 3 year period to repay the delinquent taxes and penalties. Any time after the redemption period, but not exceeding 10 years, the investor may initiate foreclosure with the superior court in the county that the property is located in.

Bid Down Interest – Bidders compete through lowering their acceptable interest rate of return. Bidders will pay the combined total of all delinquent property taxes, penalties and fees.