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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2780: judicial foreclosure; excess proceeds sale
Sponsor: Representative Liguori, LD 5
Committee on Ways & Means
Overview
Allows for the purchaser or their heir or any assignees of a tax lien to include a request to determine if the sale of property to recover excess proceeds is reasonable in an action to foreclose the right to redeem.
History
The action to foreclose the right to redeem is to be filed in the superior court of the county in which the real the property is located with the county treasurer named as a party to the action. If any law or court order prohibits the action to foreclose the right to redeem the limitation, between three and ten years after a tax lien is sold, would be extended by 12 months after the termination of the law or court order (A.R.S. § 42-18201).
Provisions
1. Allows a request to determine if the sale of the property to recover excess proceeds is a reasonable amount to be included in the action to foreclose the right to redeem. (Sec. 1)
2. Allows a certificate of purchase holder to request the court to determine if the sale of the property to recover excess proceeds is reasonable. (Sec. 2)
3. Specifies that a request to determine if the sale of the property to recover excess proceeds must be done any time before the court's judgment is effective. (Sec. 2)
4. Outlines that unless stated elsewhere in statute, the sale must be less than 60 days after the date of judgment. (Sec. 3)
5. Expands the minimum bid for the notice of sale by including the costs related to filing the claim to foreclose the right to redeem which are:
a. the costs related to filing the claim to foreclose the right to redeem, including estimated attorney fees and costs to be incurred through the date of the excess proceeds' sale, if ordered.
b. the amount for which the real property tax lien was sold, with interest at a rate of 16% per annum.
c. the amount of any statutory fees the certificate of purchase holder paid in connection with the certificate of purchase, except the processing fee with an interest rate of 16% per annum from the date of the tax lien sale through the date of the excess proceeds sale, if ordered.
d. the estimated cost of the sale of property. (Sec. 4)
6. Specifies that any party that is entitled to any amount of proceeds from the sale can start a civil action against the qualified entity for its failure to properly make distributions. (Sec. 6)
7. Makes technical and conforming changes. (Sec. 4,5)
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11. Initials VP/CS HB 2780
12. 2/5/2026 Page 0 Ways & Means
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