Property tax foreclosure in Arizona

The property tax process in Arizona, step by step

1. Taxes become delinquent

   First half after November 1, second half after May 1, at 5 p.m.

   Late taxes carry 16 percent simple interest a year, but no interest is charged if the full year's tax is paid by December 31. The county treasurer, with board of supervisors approval, may waive interest and penalties once for a delinquency in the year after your mortgage is paid off or released.

   Ariz. Rev. Stat. §§ 42-18052, 42-18053

2. Notice of the tax lien sale

   List prepared by December 31, published 2 to 3 weeks before the sale

   The treasurer lists every parcel with unpaid prior year taxes, mails a copy of the notice to the owner's last known address, and publishes and posts the list. Paying everything due before the sale keeps your lien off the auction.

   Ariz. Rev. Stat. §§ 42-18106, 42-18108, 42-18109

3. The tax lien sale

   February

   The lien goes to the bidder who pays all the taxes, interest and charges and accepts the lowest interest rate, no higher than 16 percent. The buyer gets a certificate of purchase. You still own the home and can still pay.

   Ariz. Rev. Stat. §§ 42-18112, 42-18114

4. Redemption

   At least 3 years, and until a deed is delivered

   You redeem by paying the county treasurer the lien amount with interest at the certificate rate, any later taxes the lien holder paid with the same interest, and certain fees. You, your agent, anyone with an interest in the home, or a charity paying for you can redeem.

   Ariz. Rev. Stat. §§ 42-18151, 42-18152, 42-18153

5. Notice of intent and the foreclosure lawsuit

   Notice 30 to 180 days before filing; suit from 3 to 10 years after the sale

   The lien holder must mail you a notice by certified mail that warns you to request an excess proceeds sale if your home is worth more than the taxes. The case is filed in superior court. You can still redeem before judgment, but once a lis pendens is recorded you also owe the holder's court costs and reasonable attorney fees.

   Ariz. Rev. Stat. §§ 42-18201, 42-18202, 42-18206

6. Judgment: deed or excess proceeds sale

   Ask before the judgment takes effect

   If you do not ask for an excess proceeds sale, the court orders the treasurer to give the lien holder a deed and you lose the home. If you ask and give a reasonable estimate of market value, the court must order a sale when the price is likely to be more than $2,500 above the debts and sale costs. The sale is held by a qualified entity within 60 days of the judgment.

   Ariz. Rev. Stat. §§ 42-18204, 42-18233

7. Your share of the sale money

   Paid within 90 days after the excess proceeds sale

   After the sale costs, the lien holder's amounts, other property taxes and recorded state liens are paid, the rest goes to you, and you do not have to attend the sale. Money not claimed after 90 days goes to the state's unclaimed property program. If the lien was held by the state instead, the county can take a deed after five years, and any balance from a later sale is paid to the owner who lost the property.

   Ariz. Rev. Stat. §§ 42-18236, 42-18261, 42-18303(C)

Common questions in Arizona