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"How can I sell my tax lien investments?" This is one of many questions we hear a lot. Tax liens can be sound investments, but contrary to much of the hype out there, they do have risks. One risk is liquidity risk. As a tax lien investor, you have little control over when you receive your principal and interest, and the secondary market is spotty, at best. Consequently, you may not be able to liquidate your holdings when you want or at the price that you want. Getting you a fair price for your tax lien investments in the secondary market is one of many services provided by Arizona Tax Lien Services. Although Arizona Tax Lien Services specializes in select counties within Arizona, we do principal and broker transactions involving tax liens from other counties and states.

Welcome to Arizona Tax Lien Services.  AZTLS's mission is to help investors benefit from the lessons that we have learned while investing our own money in Arizona tax liens.

There is confusing and incomplete information about tax liens on the Internet, and there are many sites that want to sell you information that is actually available free of charge.  We want to give you an overview of tax liens and tax lien investing and share with you resources that we have found helpful to us. Many investors pay hefty fees to attend seminars or buy "how to" books, but you will find that most of what you need can be found easily and without expense.

Arizona Tax Lien Services offers a comprehensive range of services, both for experienced investors and for those that are new to tax lien investing. The following is only a partial list. We welcome your calls and emails.

Tax Lien Services Offered

Our services include, but are not limited to, the following areas relating to tax liens in Arizona, with special emphasis on tax lien certficates of purchase ("CPs") issued by Maricopa County, Pima County, Yavapai County, Coconino County and Gila County:

Some Tax Lien Risks to Consider

In addition to liquidity risk, investing in tax liens involves a number of other risks. Foremost among the risks is that of not getting what you expect. Like the market for foreclosures, the market for tax lien certificates has been tainted by opportunists looking to make money off of well-intentioned, but somewhat naive potential investors. The internet, infomercials, various "seminars" and print media are full of misinformation regarding tax lien investing. Before spending a penny on anything relating to tax liens, be sure that the source is experienced, knowledgeable and ethical. Also, be sure that what you are paying for is not available free of charge elsewhere!

One website promises 16% returns and tries to sell you lists of liens for sale by county. In Arizona, the three ways that most people buy tax lien investments is at the annual auctions, directly from the counties in "over the counter" transactions, or via assigments from other investors. Using Maricopa County as an example, the average rates for CPs sold at auction in 2006-2009 were, respectively, 6.046%, 7.578%, 7.642% and 8.66%. These numbers are a far cry from 16%. When buying CPs over-the-counter directly from the counties, your investment should earn the state's statutory 16% rate of (simple) interest, but that presumes that the investment ever pays off! A lot of the CPs that are available directly from the counties are problematic situations that investors in the auctions did not want - usually for good reasons. You may find yourself owning tax lien certifates of purchase ("CPs") that are worthless or not economical to prosecute via foreclosure. And again, you should not pay third parties for lists that can be obtained directly from the counties for less money, or for free!

Another rogue website and seminar promoter claims that tax lien investments are backed by the government when almost all are NOT. As discussed in more detail elsewhere, tax lien investments represent unpaid taxes, interest and penalties for property taxes owed TO Arizona state (or another state), but not BY the state. The person who owes the back taxes is whoever the owner of the property is. Fortunately, the money owed is secured by a high-priority lien on the property, but rarely is the amount owed backed by any government entity. You must look to the property owner and to the value of the property when assessing the quality of your CP investment.

The fact that the quality of a tax lien CP investment is so tied to the value of the property securing it introduces other risks. Some, but not all, of these risks, include environmental risks and risks that the property is worth less than the lien secured by it, particularly when extensive renovations are required. If a property owner does not pay the back taxes, a tax lien investor can protect its interest, after a period of time not less than three years from the date the CP was auctioned, by pursuing a foreclosure lawsuit. This introduces another family of risks, including risks relating to service of process, protections afforded to certain types of property owners and procedural risks.

When you are in doubt about any aspect of tax lien investing, AZTLS strongly encourages that you consult with your attorney, accountant, goverment offices, qualified professionals or other relevant resources. The law surrounding tax liens is evolving regularly. As a starting point, you should read the relevant parts of the Arizona Revised Statutues, which can be found online at:

http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp

Title 42 is especially relevant. Of course, there is a considerable body of case law on the subject, as well. Again, proceed with caution and consult experts when you are in doubt.

Do not underestimate or gloss over the risks invovled in property tax lien investing. Do not part with your money when excellent, accurate resources are available to you conveniently and economically. Above all, rest assured that Arizona Property Tax Lien Services is here to help!