Detailed Answer
1. Understand Arizona’s Tax Lien and Redemption Period
When property taxes go unpaid, Arizona counties record a lien on the property. A.R.S. § 42-18301 sets the lien date as January 1 of the tax year. The county may then sell a tax lien certificate at a public auction. Property owners have a three-year redemption period to pay the delinquent taxes, interest and fees. If the owner fails to redeem within three years, the certificate holder can apply for a tax deed under A.R.S. § 42-18302.
2. Enter a Hardship Payment Agreement
Arizona law allows owners facing financial hardship to request an installment payment plan. Under Title 42, Chapter 18, Article 7, property owners may apply to the county treasurer for a payment agreement. A.R.S. § 42-18601 et seq. Approval will halt foreclosure proceedings as long as you comply with the agreed schedule.
3. Redeem the Property Before the Sale
You can stop a pending tax sale by paying all delinquent taxes, penalties, interest and sale costs to the county treasurer before the auction date. Always obtain a written receipt and confirm that the county records your redemption payment promptly.
4. Negotiate with Certificate Holders
After a certificate sale, the holder may agree to accept a lump-sum payment or a new payment plan. Negotiations can delay a tax deed application and extend time to secure funding.
5. Seek Judicial Relief
In rare cases, courts may set aside a tax sale or extend the redemption period for reasons such as fraud or lack of proper notice. You must file a lawsuit within statutory deadlines. Consult an attorney to evaluate potential equitable relief.
Helpful Hints
- Track all deadlines, including sale and redemption dates.
- Contact your county treasurer early to explore options.
- Keep detailed records of payments, notices and agreements.
- Check if you qualify for surplus fund recovery after a sale.
- Consider a bridge loan or line of credit to cover taxes.
Disclaimer: This article provides general information about Arizona law. It is not legal advice. Consult a qualified attorney regarding your specific situation.