Arizona
Tax Lien Sale Can Be A Lucrative Offer
The tax lien is a statewide process showing procedural variations between the counties. The counties usually host tax deed sales mainly at the public auctions. Arizona is a county with great option to invest. Arizona tax lien sale is a great opportunity for the investors to earn profits. Arizona with a lucrative interest rate and complimentary redemption period is a favorite destination with most of the investors.
Arizona tax lien sales are conducted by the treasure offices. The county tax lien sales are held in February. The delinquent taxes of the previous tax year are involved in the sales. The bidding is committed on the parcel with an amount of interest that the purchasers are expecting to accept on the amount paid in case of redemption.
The bidding typically begins at 16 percent and the bidder accepting the lowest rate of interest receives the lien. The investor is awarded the registered tax lien certificate of purchase. The period for redemption is three years. During this period, the owner of the property can pay off the delinquent taxes. In case the owner fails, the tax lien is redeemed by the investors, who are profited with the purchase amount along with the rate of interest bid at the time of sale.
The parcels, which are unsold at the annual tax deed sales are assigned to the state with an interest rate of 16% and the registered Certificates of Purchase, recorded. These tax liens owned by the state, are placed on the delinquent list for five more years. The investors can access them through assignments. Such Arizona assignment purchases can be accomplished either directly in person or via mail.
The Redemption Process
The investor has to wait for a certain period, that is the redemption period, within which the property owner or someone having a stake or interest in the property, such as the mortgage holder may repay the lien with interest. During this period, the lien holder is restricted from any sort of correspondence with the property owner demanding payment or threatening foreclosure, as in such a case the tax lien certificate can be forfeited. As the period of redemption expires, the investor acquires the right to foreclose the property based on the lien.
However, before investing into tax lien certificate the investor must consider that it is not as simple as investing into a mutual fund. It is simply an option to buy real estate property at a discount with unusual terms. The owner may end up with a piece of litigated property that takes long time to sell at good price.
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