Yesterday Astrozombie asked the following great question:
With Phoenix RE taxes due this month it would be interesting to see how people feel about investing in tax liens. I’m not talking about buying property, but essentially buying the lien from Maricopa county.These are auctioned off and the auction starts at a 16% return. There have to be a lot of houses that will fail to pay taxes this year….
The question that I would ask is where in line does the tax lien fall in getting paid if there is a foreclosure?
My answer would have looked something like, "Uh, uh….," so rather than just stammer foolishly, I turned the question over to L, who unlike me, actually knows about tax liens in Arizona. Here’s what he said:
