Maricopa County Tax Lien Sale
February 23, 2009
This Monday, Feb. 9, 2009, the annual tax lien sale for Maricopa County will be held. The tax lien sale is for unpaid property taxes, both residential and commercial, from 2007.Maricopa County has an estimated $47.5 million in unpaid property taxes to auction off on more than 34,000 parcels of land. This includes both developed and undeveloped property. Arizona statutes require that investors bid on property tax liens with interest rates starting at 16 percent. The lowest bidder (lowest interest rate) wins the right to purchase the tax lien from Maricopa County.
If the property owner pays the arrearage on the property taxes the investor receives his investment (the amount of the tax paid) plus the interest accrued at the rate bid at the auction. If the property owner fails to pay the delinquent property taxes the investor has the option to file a judicial foreclose on the property after three years. Property tax liens take precedence over mortgages and even IRS liens so after the judicial foreclosure the investor will own the property free and clear of subordinate liens.
Investors must thoroughly research the situation before bidding on a property tax lien because you could be paying the property taxes on an environmentally contaminated property, a condemned property, an orphan parcel, or a property with no economic value. The Maricopa County property tax auction is conducted online and investors must make a deposit of 10 percent of their allowed bid amount, with a required minimum deposit of $500 to be eligible to participate in the online auction. All payments must be made on the Maricopa County Web site. If you are interested in finding out more about participating in the upcoming Maricopa County tax lien auction you can register at the Maricopa County Treasurer’s Web site..