Lien Purchase Inquiry Notice
The public has an opportunity to place a tax lien on the remaining parcels that are listed under tax lien auction list at RealAuction.
Over-the-counter liens, following the auction, can be purchased directly from the Treasurer's Office. To become an investor, please fill out the Investor Information Form and Investor W9 (original documents) and mail to the Treasurer's Office.
Liens are placed on the parcels for nonpayment of real property taxes. The liens available are those that were not purchased at the last February tax lien sale.
The sale of these liens is a procedure set up by the State of Arizona to assist the County Treasurers in the collection of real property taxes. This allows counties, school districts, and other taxing entities to receive funds for their day-to-day operations.
Some information you need to know:
- The interest rate for these liens is set at 16% annual simple interest, prorated monthly.
- There is a $10 nonrefundable fee for each purchase.
- Your collateral for the lien is the property; if the property is poor, so is your lien. We advise you to look at the property. Once you have purchased a lien on the property, it is yours. Invest wisely, we will not refund your money.
- You are buying a lien, not the property. This lien does NOT give you any right to be on the property or even talk to the property owner.
- Anyone proving "equitable interest" in the property can redeem the property before it is deeded.
- When a property is redeemed, we will notify you by mail and send you a check with the amount due (including interest). This is the amount we will report to the I.R.S.
- A lienholder can strengthen their position by paying “subtaxes” (subsequent taxes). These are prior year taxes that have gone delinquent but have not been delinquent long enough to warrant the issuance of a new CP (certificate of purchase). These subtaxes, when paid, are attached to the latest CP owned. At that point, the CP cannot be redeemed without redeeming the attached subtaxes. Subtaxes can be purchased between June 1st and December 31st. You must call our office at 928-524-4172 to get the current amount due.
- A “quiet title” action can be taken through the courts on any CP three years after the date of the tax lien sale. Consult an attorney for more information on this procedure.
- This is not an investment like at a bank. You cannot sell it or close your account. You receive the return on your investment either when the property owner redeems the lien or, if the lien is not redeemed within three (3) years of the date of sale, you may initiate the foreclosure process. Once deeded, you can sell the property and hope to recover more than your original investment.
- Effective February 1, 2008, Navajo County has chosen to participate with the counties in Arizona in the manner of payment of investment interest. Due to Court Case Number 2CA-CV 2005-0069 (Ulan et al v. Pima County), we no longer pay interest to the investors for the first month of the purchase of the taxes placed on a certificate. Example: you will not earn interest for the month in which you purchased the tax lien.
This inquiry is provided to give you information on purchasing a lien on delinquent taxes only.
Contact our office to confirm amounts before sending any money: 928-524-4172.