Bill > HB2878

This bill modifies Arizona's judicial foreclosure laws, primarily focusing on the process of selling tax-defaulted properties and distributing sale proceeds. The bill clarifies and expands provisions related to foreclosing the right of redemption for properties with delinquent taxes, allowing property owners or certificate of purchase holders to request an excess proceeds sale if the property's value is likely to exceed the total outstanding tax liens and associated costs by more than $2,500. The bill introduces new requirements for determining the reasonableness of an excess proceeds sale, including mandatory information that must be provided by both the certificate of purchase holder (such as filing costs, interest, and statutory fees) and the property owner (such as an estimated market value). Additionally, the bill streamlines the sale process by establishing specific timelines for sale execution, payment, and proceeds distribution, and provides mechanisms for handling situations where initial bidders fail to complete their purchase. The changes aim to provide more transparency and flexibility in the tax lien foreclosure process, ensuring that property owners have a fair opportunity to recover any excess value beyond the outstanding tax-related obligations while also protecting the interests of tax lien certificate holders.