What are Real Property Tax Liens?
When a property owner does not pay the real property taxes, the property will be auctioned in a competitive bidding process referred to as a tax sale. The investor who bids the lowest percent of interest will be the successful bidder for the property.
Property taxes that are delinquent at the end of December are added to any previously uncollected taxes on a parcel for the Tax Lien Sale. The sale takes place in early February of each year online at https://maricopa.arizonataxsale.com.
The following will explain a few of the fundamentals of Real Property Tax Liens.
What is a “tax lien,” also known as a “certificate of purchase”?
- If a property owner fails to pay the delinquent taxes and fees, the Treasurer must offer the taxes for purchase during the tax lien sale. A certificate of purchase only represents a tax lien on the property and does not convey or promise to convey ownership of the property.
- The investor can receive interest between 0% and 16% per year until the tax lien is redeemed.
- Maricopa County Treasurer’s office has gone “green,” so no paper certificates are available.
- Investors should register on the Tax Lien Web for their portfolio of investments.
Quick Links to Articles & Resources
Property which is pledged as collateral on a debt will sometimes be surrendered to the creditor if the debtor is unable to make payments.
The rise in incidents of foreclosure of homeowner mortgages across the nation is but one aspect of this. Repossessions of cars and mobile homes are also common occurrences in the current economic environment. This article explores the income tax consequences to the borrower which may ensue from surrendering property to satisfy a debt. In general there are two tax aspects to consider: (1) recognition of gain or loss on the transaction and (2) recognition of cancellation of indebtedness (COD) income.
Read More about this by visiting the link below
Tax Issues in short sales, trustee and sales and foreclosures, by Robert Ciancola
Visit “Buying Tax Liens: Not an Entirely Gold Plated Investment“, by Chris McNichol, an Arizona Attorney
“Tax Lien Sales Winner for County (but not investors)“, by Mike Fimea, Arizona Business Gazette, February 19, 2004, volume 124
When deciding whether to fight to keep your home or let the lender foreclose, it’s important to know what the lender’s processes are.
How long before my house has equity?
Find out by using the calculator below. This tool will allow you to calculate when you will have equity in your home.
The principal and interest make up the majority of your mortgage payment. The main is the amount borrowed, while the interest is the fee paid to the lender. Your lender may additionally collect an additional sum each month to place in escrow, which the lender (or servicer) normally pays directly to the local property tax collector and your insurance provider.
Mortgage Repayment Calculator
mortgage payment calculator provided by bankrate.com
Clients from all across Arizona have put their trust in us
You gave us great guidance
“You gave us great guidance.” J.B. Thank you !!! Diane and Jay for all your help. I would highly recommend your services. You were very caring and helpful during the whole process. You gave us great guidance through a very stressful time. We appreciate it. [...]
Diane has a wealth of knowledge
“Diane has a wealth of knowledge.” S.B. Sharing knowledge "Diane Drain is a wealth of knowledge. She is a great attorney." S.B.
It is a lot of work to prepare, but….we are more prepared for a better future
"It is a lot of work to prepare, but….we are more prepared for a better future" L & A.Q. My wife and I would like to thank Diane and Jay for their hospitality, thoroughness and patience. With the hard decision of wanting to file bankruptcy, they showed [...]
answered all of my questions thoroughly
"answered all of my questions thoroughly" E.L. Diane and Jay were amazing! They made everything so easy and answered all of my questions thoroughly. I appreciate all the help and guidance I received throughout my filing experience. I would highly recommend Diane to anyone looking into bankruptcy. [...]
This is your bankruptcy; you get out of it what you put in
"This is your bankruptcy; you get out of it what you put in" K.B. Diane Drain, and her amazing teammate, Jay were two of the most helpful, caring individuals I have met in a long, long time. The process of bankruptcy is daunting, having a guiding hand [...]
We were treated with the utmost care and respect
"We were treated with the utmost care and respect." A.W. We were very apprehensive and stressed out at the thought of having to go through such a difficult process. From our first meeting with Diane Drain it was clear that we would not have to go through this [...]
I will be forever grateful to Diane and Jay for giving us our life back!
I will be forever grateful to Diane and Jay for giving us our life back! P.E. I cannot adequately describe how much we appreciate the help Diane and Jay provided us. We were in serious financial trouble, which created an incredible amount of stress that was beginning [...]
Rated high among her peers
"Rated high among her peers" Anonymous Ms. Drain helped make a very difficult time more bearable. She treated us with the utmost respect and caring while pushing us to get together the paperwork needed to get us to the best possible end result. It was very obvious [...]
Diane and Jay were both very helpful and promptly answered questions that came up
"Diane and Jay were both very helpful and promptly answered questions that came up" N.F. Diane and Jay were both very helpful and promptly answered questions that came up either via return phone call, email or both. They both were very knowledgeable about the whole process and [...]
She knows the ins and outs
"She knows the ins and outs" M.D. I’ve been in the legal field for over 25 years (as a legal secretary and paralegal) and Diane is a top notch attorney. She knows the ins and outs of this area of law and does a really great job of explaining [...]
From our initial consultation, we were impressed by Diane’s legal knowledge and compassionate nature
“From our initial consultation, we were impressed by Diane's legal knowledge and compassionate nature,” C.R. My elderly parents were experiencing financial difficulty due to dealings with an unscrupulous timeshare company. Their only option was to file bankruptcy. While searching for a bankruptcy attorney, we came across the [...]
You made us feel as though we were your friend; for that we are grateful
You made us feel as though we were your friend; for that we are grateful.. I & A.F. We want to thank you for taking our bankruptcy case. It was a time in our life when we were emotionally, and financially distressed. You put our minds, and [...]
Diane and Jay were always very positive and consistently receptive in answering and returning phone calls and emails in a timely manner
Diane and Jay were always very positive and consistently receptive in answering and returning phone calls and emails in a timely manner. In summary, they are a class act and able to take a very challenging and difficult process and make it as humane and positive as anyone could. I [...]
If there is more than 5 stars, I would Jump to give the highest
"If there is more than 5 stars, I would Jump to give the highest." P.G. If there is more than 5 stars, I would Jump to give the highest possible rating to attorney Diane Drain. Before I called Diane, we did our own research, read everything on their web [...]
Experienced and excellent. 5.0 stars
"Experienced and excellent. 5.0 stars" M.R. Diane did a tremendous job preparing me for my bankruptcy. She educated me thoroughly about the process and stressed the importance of following all the steps as concisely as possible. Her rates are very reasonable, and I cannot recommend her highly [...]
avoid bankruptcy mills
"Avoid bankruptcy mills" D. & B. We were extremely pleased with the quality and level of support you and Jay provided. We had shopped around a bit before contacting you and once we did the comparison with other attorneys and bankruptcy “mills” was extremely and significantly positive. [...]
We were put at ease throughout the process
"We were put at ease throughout the process" S.L. Diane and Jay made sure we were put at ease throughout the process.
Communication is key when entering into a bankruptcy
“Communication is key when entering into a bankruptcy” K.H. I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the [...]
Discharge in Bankruptcy – the basics
Reprint from the United States Bankruptcy Court The bankruptcy discharge varies depending on the type of case a debtor files: Chapter 7, 11, 12, or [...]
Beyond the Bankruptcy Paperwork: It’s Not Just Filling Out Forms, and Understanding The Attorney’s Role
Many people, including inexperienced attorneys, think that bankruptcy is simple. To quote a first-year law student on their first day in bankruptcy class, "It is [...]
A Cautionary Tale for Arizona Homeowners
After 100 Years of Protecting Homeowners, Arizona's Law Changes to Give Creditors New Rights to Take Your Home Depending on the [...]
The Lowdown on Business Bankruptcy: What You Need to Know
Bankruptcy is a complex process that can have significant implications for your business and personal finances. Before considering business bankruptcy as an option for [...]





