Can I Sell My House If I'm Behind on Property Taxes in Arizona?

Selling When You're Behind on Property Taxes in Arizona

Yes, you can sell your house if you're behind on property taxes. The taxes get paid at closing. Here's what you need to know.

How Arizona Property Taxes Work

Taxes due in two installments (October and March)

First half due October 1, delinquent November 1

Second half due March 1, delinquent May 1

Interest accrues on late payments (16% per year)

After 3 years, county may sell at tax lien auction

What Happens When You're Behind

Year 1: Penalties and Interest

16% annual interest begins

Penalties added

Letters from county

Year 2: More Penalties

Interest continues accumulating

Liens remain on property

More aggressive notices

Year 3+: Tax Lien Sale

County sells tax lien to investor

Investor can eventually foreclose

You risk losing property

Selling With Delinquent Taxes

The Good News

Delinquent taxes are paid from sale proceeds at closing. You don't need to come up with the money first.

The Process

1. Title company orders tax certificate 2. All owed taxes calculated (including penalties/interest) 3. Taxes paid at closing from your proceeds 4. Clear title transfers to buyer

The Math

Example:

Sale price: $300,000

Mortgage owed: $200,000

Back taxes owed: $8,000

Net to you: $92,000

What If Taxes Exceed Equity?

If you owe more in taxes and mortgage than the house is worth:

Short sale may be possible

Negotiate with lien holders

Cash buyers experienced with these situations

May need to bring money to closing

Selling to a Cash Buyer

We buy houses with:

Delinquent property taxes

Tax liens

Multiple years of back taxes

Other liens alongside taxes

Benefits:

Fast closing before more penalties

We handle title issues

No judgment, just solutions

Arizona Tax Sale Timeline

| Month | Status | |-------|--------| | October | First half taxes due | | November | First half delinquent, 16% interest starts | | March | Second half taxes due | | May | Second half delinquent | | February (Year 4) | Tax lien sale |

The key: Sell before the county auctions your tax lien.

Preventing Tax Sales

If you're struggling:

Contact county treasurer for payment plans

Some counties offer hardship exemptions

Seniors may qualify for deferrals

Sell before you lose the property

Get Your Cash Offer

Behind on property taxes? We can help. Get a fair cash offer and we'll handle the back taxes at closing.