12,740 delinquent tax bills up for auction

Despite a drop in the number of properties involved, the overall value of the 2011 Pinal County tax lien sale has escalated for the fourth consecutive year.

In 2010, the county put 17,004 delinquent tax bills up for auction with a total market value of $13.8 million.

This year the number of properties dropped to 12,704 but the value of those properties increased to $14.1 million.

The county places a lien on property when the property taxes have not been paid for 18 to 24 months, according to Pinal County Treasurer Dolores Doolittle.

The delinquent tax bills are then put up for auction each year, with the winner of the auction being the person who offers to buy the lien for the lowest interest rate.

In the past, the county has had a live auction on each overdue note, with the auctioneer starting at the highest interest rate allowed by the state, 16 percent, and working down.

This year the county has switched to an online bid system that allows bidders to login and place a bid on the lien they want to purchase.

“We require that a person interested in bidding online places a deposit of 10 percent of the amount they wish to spend on tax liens,” Doolittle said.

Once a person purchases a tax lien, they pay the amount of the lien to the county, which then distributes the delinquent taxes to the appropriate taxing districts.

The purchaser is reimbursed the purchase price of the lien and the annual interest rate they set at purchase when the property changes ownership.

If the owner of the property does not pay the lien within three years, the lien holder has the right to foreclose on the property and take possession after taking all the proper steps in the judicial foreclosure process.

Tax liens typically range from $20 to several thousands of dollars in value.

If interested in purchasing Pinal County tax liens visit www.arizonataxsale.com

The tax lien auction will remain open until Feb. 17.