preforeclosure questions

I am trying to find out if my situation is something that an Arizona real estate investor would consider of interest. I own a house that is about 60 days past due and I am no longer going to be living in it. :frowning: My ex-husbands friends live in it and they are not paying their due $$ to me for the mortgage. Getting them out of the house will be my first challenge, but I am trying to look further beyond that aspect.

Now to make things tricky - due to a bad divorce and a failed business there is a tax lien on file with the county clerk’s office. At this point my object is likely to sell the house and see what has to be done in relation to the tax lien (i.e. offer in compromise, etc). I am under no illusion about the complexity of that issue, but just don’t want the house to go into a foreclosure situation.

Any suggestions of my best alternative?

Tax lien will come first before the foreclosure.

Hi - What type of tax lien? IRS or State? If state. the lien shouldn’t be too much but would need to be paid off first from the sale proceeds.

Also, where is your property located? I might be interested. A friend of mine is in a similar situation. Since the house was in her name only - but her ex was living there, she went and changed the locks. Unfortunately, he got a key and moved back in. She got legal advice and got an injuction, changed the locks and he is out again. Her house is now for sale.

I’m in Arizona and work closely with a Phoenix investor/realtor. Please give specifics with exact amounts so we know the facts and can make some recommendations.

Da Wiz

I how much are the monthly payments?

The total payments are about $1340 - way more than they really should be because my ex had the house refinanced 2 months before I left him.

I am working with someone right now who is doing research on the liens…supposed to find out more shortly.

Hi - Good luck - it will work out … don’t worry. :slight_smile: My friend in the same situation got it all straightened out (it took some work) and is now in TX with her family. We’ve got her home on the market now and it looks great. I hope she sells it soon. She’s already got her eye on a new place.

Question about your tax lien. How many years has it not been paid? In az once a home goes 3 years without paying and someone files for a ded, the homeowner does not have chance to get the house back once its filed. If I’m wron g about this, someone can correct me. So if your husband didnt pay the taxes for 2004, you have another 2 years to go. This means that if you go into foreclosure in another month. Most lenders wait 90 days before they file public notice. Not sure about az foreclosure law, yo will have to check into that. Florida waits usually 90 days for a lis pendens to be filed. Then around 6 months before it goes to auction. Generally from what I understand, the county will not discount liens, they want all their money. But I can let those more qualified to answer about az foreclosures. Hope this helped

On the AZ tax liens - they go for 10 years, but you can foreclose after 3. I’m pretty sure the homeowner can pay the back taxes at the point they learn of the foreclosure - because I heard people getting their investment, interest, fees, and attorney’s fees for forclosure. I have never foreclosed on anyone.

Here’s the AZ Foreclosure info for homes delinquent in their loan payments … not TAXES:

Have both Judicial & Non-Judicial

Process Period
102 days

Sale Publication
41 days

Redemption Period


Comments: Judicial Foreclosures are not common

Both court and out-of-court foreclosures occur in Arizona. The typical timeline for an out-of-court foreclosure is about four months.

Pre-foreclosure Period

Court foreclosures begin when the lender files for foreclosure in court and records a notice of the pending lawsuit (Lis Pendens). The court filing includes the debt and default amount. The borrower and any junior lien holders are notified either in person or by publication. If the borrower does not respond to the court action, the court can rule against them and set the amount owed to the lender. The county clerk then directs the county sheriff to conduct a sale of the property to recover the amount owed.

An out-of-court foreclosure sale may occur if a clause in the trust deed permits the lender to sell the property if a borrower defaults. To start the foreclosure, the trustee records a notice of sale, and the sale occurs at least three months after the notice is recorded. Until 5:00 p.m. the day before the sale, the borrower or any junior lien holders may stop the foreclosure by paying the default amount, fees, and costs.

Notice of Sale / Auction

For court foreclosures, the sheriff conducts the sheriff’s sale about 45 days after the county clerk directs the sale. It is a public auction, and anyone may bid. The bid price must be paid to the sheriff by 5:00 p.m. the day after the sheriff’s sale. After the sale, a certificate of sale is issued. If the property is not abandoned, the redemption period is six months from the sale date. If the borrower does not redeem, any secondary lenders may do so within a specified time. To redeem the property, the total amount owed plus fees and costs must be paid. If no one redeems the property, the sheriff transfers ownership to the winning bidder.

For out-of-court trustee sales, the notice of sale contains a property description, and the date, time and place of the sale. The notice is recorded, and the trustee mails the notice to all affected parties at least three months before the sale date. The notice appears in a local newspaper once a week for four weeks, with the last notice published no less than 10 days before the sale date. At least 20 days before the sale, the notice is posted on the property and the county courthouse. Starting the day before the sale and up to the sale, the trustee must provide the opening bid of the sale to anyone who asks or the sale may have to be postponed.

The trustee or the trustee’s agent conducts the sale at the property, the courthouse, or the trustee’s office.All bidders must provide a refundable $1,000 deposit in order to bid; the trustee keeps the deposit of the winning bidder. The sale can be postponed up to 90 days by announcement at the originally scheduled sale. The winning bidder has until 5:00 p.m. the next day to pay the full bid price, after which the trustee transfer ownership of the property within seven days. The proceeds of the sale are paid to the primary lender, then to any secondary lenders. There is no right of redemption for the borrower after an out-of-court foreclosure sale.

Although it says you need a $1,000 check - Trustees are requiring a $10,000 check.

If your husband was able to refinance the house, it sounds like he still has some title to it. I would check with a lawyer because if he does have part of the title then he could prevent the sale unless court ordered. I may have missed something in your post but I’d first make sure that you have full ownership of the property.