Arizona Amends Provisions Regarding Foreclosure
By Matthew Dailey, J.D.
The state of Arizona amended its provisions relating to the action to foreclose, the right to redeem as well as subsequent certificates of purchase by assignment. These provisions are effective on July 3, 2015.
Arizona addressed section 42-180 which deals specifically with partial payment of taxes and certificates of purchase. The amended statute now reads that for all certificates of purchase for tax year of 2014 sold during 2016, the county treasurer will accept a partial payment at least 25% of the principal amount plus any interest and fees (with minor exceptions). Partial payments are kept in escrow and disbursed by the treasurer when sufficient to redeem the oldest outstanding certificate of purchase.
Section 42-18121 now says that if someone holding a certificate of purchase after 2014 wishes to pay subsequent taxes then the treasurer has to issue a separate certificate of purchase by assignment. The treasurer will collect a fee of $5.00 for assignment of a certificate of purchase for each subsequent year. Subsequent certificates by assignment carry the same foreclosure right as the original certificate of purchase.
The lien still may be fully redeemed at any time within three years of the date of sale or the delivery of the treasurer’s deed. However, now a lien that has been partially redeemed must be fully redeemed before the delivery of the treasurer’s deed to the purchaser. The treasurer must refund all partial payments to the owner within 30 days after delivering the deed to the purchaser.
Section 42-18154 dealing specifically with the certificate of redemption was amended as well. Now, if a person requests to make a partial payment on a certificate of purchase and the treasurer deems that he or she has the right to do so then the treasurer has to issue a statement of partial payment. It must identify the person, property, the date, the amount and the amount remaining to fully redeem.
The action to foreclose the right to redeem has been amended by the new statute. Section 42-18201 (A) remains the same but (B) states the holder of the certificate by assignment can foreclose after three years, but not later than ten years, of the assignment if the lien is not redeemed. The action to foreclose must be brought in superior court in the property’s county.
Finally, Section 42-18202 now includes the county treasurer not being able to accept partial payments after the date treasurer receives a notice to foreclose the right to redeem.
Matthew Dailey, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Stonehill College and earned his Juris Doctor at the New England School of Law. Mathew is admitted to the Bar in Massachusetts. He can be reached at Matthew@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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