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The Implications of the Revised Arizona Tax Lien Process

Updated: May 17, 2022

Est. Reading: 2 minutes

Arizona always had strict laws when it comes to real property taxes. The revised tax lien process is another proof of how serious the county takes this law. According to the revised process, if people can’t pay real property tax for their commercial buildings, vacant lands, or homes, the county government will lien their real property to cover the unpaid tax amounts. The government allows three years to the person to pay his taxes. If he still can’t, the country government will auction the tax lien properties to suitable investors.

Problem with the revised law

This law had adverse effects on Maricopa County. Recently a vet was kicked out, and his mobile home sold because people believed that the treasurer changed the tax payment system. They thought that credit card payment and partial payments are now acceptable, which is not. You have to pay the full tax amount within three years. No partial payment is acceptable.

revised Arizona tax lien process - Monahan Law Firm

The new tax lien changes allow investors to buy any unpaid real tax property. They can invest in tax lien certificates to acquire the real property. Every year, Arizona arranges an auction to sell unpaid property tax liens. In fact, Maricopa County has an online auction every year in February. However, some of the other counties may sell tax lien certificates separately.

Process of foreclosing tax lien

There is a three-fold process to obtain a deed for a tax lien certificate.

  • First, you need to prepare a 30-day demand letter. This should meet all statutory requirements of the tax lien certificate. Send the letter to the Arizona county government. The government representatives may help you draft the demand so that you understand the statutory requirements you need to meet. You should also pay the taxes within 30 days from sending the letter.
  • Secondly, you need to file a foreclosure lawsuit. This is to foreclose the lien. The Arizona county government has experienced and trained litigators who can help you prepare the foreclosure lawsuit. This is one of the crucial steps to get the deed. So, make sure you take help whenever required.
    After submitting the lawsuit, it is time to wait. Once there is a judgment, the lawsuit is sent to the County government. This helps them prepare a deed with your name and details. Your name goes into the record book as the next owner of the tax lien certificate. You become the property’s owner. The prior owner will not have any hold on that property anymore.
  • Sometimes the prior owner may refuse to leave the property. In such cases, you may have to remove the owner forcefully. This is called eviction action or special detainer. Although this is not a pretty sight, it is a necessary evil that new tax lien certificate holders should keep in mind. There are many attorneys that will help you evict the previous owner.

It usually takes 100 to 150 days to acquire the deed. If someone contests the deed, it might take slightly longer than usual. Contact the Business Attorneys at Monahan Law Firm today to discover partnership opportunities

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Attorney Patrick Monahan

Patrick Monahan

Patrick Monahan is the managing partner of Monahan Law Firm, PLC. Patrick began his legal career practicing real estate, construction, and general business litigation.
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