How Do Arizona Tax Liens Work?
When an Arizona property owner doesn't pay his or her property taxes, the local county government places a tax lien on the property and then offers the tax lien, in the form of a tax lien certificate, to anyone who wishes to buy it.

In essence, the investor that purchases the tax lien certificate is paying the property taxes owed on the property so that the local county government can continue to function on budget.

When the owner eventually pays his or her property taxes, he or she must also pay a 16% late fee.

Once the property taxes are paid, the local county government will mail the investor, that purchased the tax lien certificate on that property, their initial investment (the property taxes on the property) and 16% interest.

If the property owner does not pay his or her property taxes for three years, the investor that purchased the tax lien certificate on the property has the right to foreclose on the property, have the owner removed and sell the property for a huge profit.

If the property owner does not pay his or her property taxes for five years, the investor that purchased the tax lien certificate on the property can walk into the local county assessor's office and simply have the title of the property transferred to them, have the owner removed and sell the property for a huge profit.