Bill > HB2780

This bill modifies Arizona's judicial foreclosure process for tax liens, primarily by allowing for the sale of properties where the sale price is expected to exceed the amount owed on the tax lien, a process referred to as an "excess proceeds sale." Specifically, it enables a certificate of purchase holder, who has acquired a tax lien on a property, to request that the court determine if an excess proceeds sale is reasonable, and it clarifies that such a sale is considered reasonable if the property is likely to sell for more than $2,500 above the total of the amounts owed, including the original tax lien amount with interest, associated fees, and other recorded liens. The bill also adjusts the minimum bid at public auctions for these foreclosed properties to reflect the court-determined amount for an excess proceeds sale, and it outlines the procedures for distributing any proceeds exceeding the amounts owed to the certificate of purchase holder and other lienholders, with any remaining funds going to the original property owner. Additionally, it makes minor changes to the timing and notification requirements for these sales and clarifies that a sale extinguishes subordinate liens and encumbrances held by the state, except for certain assessments and property tax liens.