Buying and Selling Arizona Tax Liens

As discussed more fully below, it is easier to buy tax lien investments than to sell them. If you have a tax lien, a portfolio of tax liens, or an interest in a partership or other entity that is invested in tax liens that you would like to sell, we strongly encourage you to contact us at taxliensaz@gmail.com. The more information that you include in your email, such as the county, your bidder number and the property APN number, the more quickly we can get back to you. While we do purchase CP and related investments for our own account, we also facilitate transactions for others.

Buying Arizona Tax Liens

In Arizona, most tax lien investors purchase tax lien investments in one of four ways:

  1. At one of the annual auctions conducted by each county;
  2. Directly from a county in an "over-the-counter" purchase;
  3. Via investing in a partnership or other structure intended to give investors access to tax lien investments;
  4. Via a secondary market purchase from another investor (assignment).

The vast majority of tax lien certificates of purchase are sold at auction (#1 above). CPs available "over-the-counter" are usually the "leftovers" that didn't sell at auctions, sometimes for very good reasons. Although CPs purchased directly from a county earn the maximum rate, which is 16% in Arizona, this return may never be realized due to problems with the lien or the property. Always do your homework!

Buying CPs through partnerships or other structures can be an attractive way of getting exposure, so long as the fees are manageable and fair.

Purchasing CPs in the secondary market would be attractive if more of a secondary market existed. At present time, however, this is not the case. While secondary market transactions do occur, it can often be difficult to match buyers and sellers. Companies like Arizona Tax Lien Services can facilitate this process while providing important ancillary services, like transaction escrow, accrued interest calculation and reporting.

Selling Arizona Tax Liens

As indicated above, it is relatively straightforward to purchase tax lien certificates of purchase in Arizona. It is easier in some counties than others, owing to differences between how and where the auctions are conducted and other factors.

Selling tax lien CPs that you already own is another story. At present time, there is not much of a secondary market for tax lien investments. That can make disposing of them, or interests in partnerships that invest in them, problematic. In order to sell your CPs, you will need to find one or more willing buyers. It can be extremely helpful to engage the services of companies like Arizona Tax Lien Services. AZTLS bids CPs for its own account and for others, and it also brokers CP transactions for others. Our related services, such as accrued interest calculation and reporting, and escrow are helpful before, during and after such transactions.