To determine specific auction procedures bidders should check with each county treasurer directly or through their website. Either way, bidders are required to register with the Treasurer to obtain a bid number or open an account and provide a Social Security Number or other form of tax ID for Internal Revenue Service reporting purposes. Other counties such as Pima County and Cochise County hold live auctions. Some counties such as Maricopa County, Pinal County and Apache County hold their auctions online. However, since the early 1990s CD interest rates have been low, and rates achieved by investors have been in the 4%-8% range.Įach county Treasurer handles the tax lien auction a little differently. When a lien is auctioned it is possible for the bidder to achieve that rate too. The interest rate paid to the county on delinquent taxes is 16%. In fact, IRS liens’ priority is based on the order recorded. Many people think that IRS liens have higher priority. The main reason people buy tax liens is for investment – to get a relatively high-interest rate compared to investing in a certificate of deposit.īy law, Arizona property taxes have the highest lien priority. Only 1% – 2% of tax liens sold result in the bidder acquiring the property. Statistically, most tax liens are redeemed by the owner. People buy tax liens for two reasons: first, to obtain ownership of a property through foreclosing the lien or second, to obtain a high rate of interest on the amount invested. In Arizona, if property taxes are not paid, the County Treasurer will sell the delinquent lien at public auction.
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