Arizona Tax Liens – Productive Investment    

Arizona State is renowned for tax liens, especially for its high interest rates. The Arizona tax liens are imposed for delinquent taxes by the local county government owed on real or personal property. The tax lien offers lucrative interests rates of up to 16% per year as well as the opportunity to foreclose the property. After foreclosure the property can be sold by the investor for huge profit.         

Essentially an Arizona tax lien is imposed on the property of a person who fails to pay the property taxes. The tax lien is then offered to the investors, in the form of tax lien certificates, at the auctions.  The investor purchasing the tax certificate actually pays the property taxes owed on the property, which enables the local county government to continue with its budget. Now, if the property owner eventually succeeds in paying the property taxes within three years, along with the 16% late fee. In this case the local county government would mail the investors the amount invested on the tax lien certificate that is their initial investment plus 16% interest.  

If the owner is unable to pay the taxes within three years, the investor gets the right to foreclose the property, remove the owner and sell the property at a huge profit. For this, the investor must apply to the court for the deed to the property. The investors are allowed to purchase the tax lien certificate for one year. However, when they go for a foreclosure after three years, they must pay all the additional back taxes that are due.    

Buying tax liens

There are various ways of purchasing an Arizona tax deed or tax lien. Arizona organizes tax sale auctions round-the-year and all over the state. The tax lien auctions in Arizona are opened for all the investors within and beyond the state.

There is also a unique option for purchasing the tax liens “over the counter.” In case a tax lien sale is already over, an investor can still get a tax lien over the counter. This allows the investor to get tax liens even without having to attend the tax lien auctions and taking part in bidding amongst other investors. This is only possible with the help of Arizona lien list.