Another way to Invest, although a bit riskier, an investor can do very well with Tax Lien Sales in Pima County, here is an overview on how they work.

Property tax lien sales in Pima County, Arizona, are a process by which the county sells tax liens on properties with delinquent property taxes. Here’s how the process generally works:

1. Delinquency and Lien Creation:

2. When a property owner fails to pay their property taxes, Pima County places a tax lien on the property for the unpaid amount, including interest and penalties.

3. Annual Tax Lien Auction:

4. Pima County holds an annual public auction (usually online) where investors can purchase these tax liens.

5. The auction is typically held in February, and the list of available liens is published in advance.

6. Bidding Process:

7. Investors bid on the interest rate they are willing to accept for the lien, starting at a maximum rate set by Arizona law (often 16%).

8. The winning bidder is the one who accepts the lowest interest rate.

9. After the Sale:

10. The investor pays the delinquent taxes to the county and receives a tax lien certificate.

11. The property owner must pay back the delinquent taxes plus the winning interest rate to redeem the lien.

12. Redemption Period:

13. The property owner has a redemption period (usually three years from the date of the sale) to pay off the lien and reclaim their property.

14. If the owner redeems the lien, the investor receives their investment back plus the interest.

15. Foreclosure:

16. If the property owner does not redeem the lien within the redemption period, the lienholder can initiate foreclosure proceedings to obtain the property.

Key Points:

• The process is governed by Arizona state law and administered by the Pima County Treasurer’s Office.

• Investors do not own the property immediately; they own the right to collect the delinquent taxes plus interest.

• The property owner can redeem the property at any time during the redemption period by paying the full amount owed.