Falling behind on a mortgage is stressful enough, but did you know you could lose your Arizona home over unpaid property taxes or HOA dues? Many homeowners are shocked to learn that even small unpaid amounts can lead to foreclosure if not handled quickly.
In this guide, we’ll explain how tax lien and HOA lien foreclosures work in Arizona, share real stories, and outline your rights and options.
What is a tax lien foreclosure—and how is it different from mortgage foreclosure?
When you miss mortgage payments, your lender may foreclose. But when you miss property tax payments, the county government can place a tax lien on your home.
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Each year, Arizona counties hold a tax lien certificate sale. According to the Maricopa County Treasurer’s Office, private investors can buy these liens and begin collecting interest until you pay the debt.
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If you do not pay within the redemption period, that investor can initiate foreclosure to take ownership of your property.
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Unlike mortgage foreclosure, which is managed by a lender or trustee, tax lien foreclosure is triggered by unpaid taxes owed to the county.
Even small tax debts can snowball into major consequences if left unresolved.
How do HOA dues turn into foreclosure in Arizona?
If you live in a neighborhood with a homeowners association (HOA), you must pay monthly or yearly dues. When these are not paid, the HOA can place a lien on your property.
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Arizona law allows an HOA to foreclose if you are behind more than $1,200 or 12 months of dues, whichever comes first.
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Once the lien is recorded, the HOA can push the foreclosure process forward, sometimes faster than you expect.
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Filing bankruptcy or attempting to pay late fees may not always stop the process.
This means HOA dues, often only a few hundred dollars a year, can put your entire home at risk if ignored.
Real stories: Homes lost over small debts
Unfortunately, Arizona families have lost their homes over debts that were shockingly small.
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Unpaid HOA dues: A homeowner in Phoenix saw her home auctioned at a trustee’s sale even though she tried to pay back what she owed and filed for bankruptcy. The HOA foreclosure process moved forward anyway.
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Unpaid property taxes: One Arizona family lost their childhood home over just $808 in unpaid taxes. A private investor bought the lien, and when the family couldn’t redeem it, they were forced out.
These examples highlight how quickly things can escalate if tax liens or HOA dues are not addressed right away.
Your rights and redemption options in tax and HOA lien cases
The good news: you often have a chance to act before it’s too late.
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For tax liens: You typically have a redemption period where you can pay back the taxes plus interest to reclaim your home before foreclosure.
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For HOA liens: You may be able to pay off the delinquent dues and legal costs before the foreclosure auction.
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For both: Acting early is critical. Waiting until the auction date is set severely limits your options.
Understanding the deadlines and redemption rights is the difference between keeping your home and losing it.
How to protect your home—and find help
Here are practical steps you can take today:
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Open every letter from your county tax office or HOA immediately.
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Check your balance online for unpaid property taxes in your county.
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Pay dues or taxes as soon as you can, even partial payments can help.
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Ask for a payment plan if you are behind, many HOAs and counties allow them.
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Talk to Hope, The Offer Company’s AI foreclosure assistant, for clear guidance.
Hope can help you understand what kind of lien you’re dealing with and walk you through your next best step.
Common FAQs about tax and HOA lien foreclosures in Arizona
How much HOA debt triggers foreclosure in Arizona?
Once you’re behind more than $1,200 or 12 months of dues, foreclosure can begin.
Can filing bankruptcy stop a tax lien foreclosure?
Not always. Bankruptcy may pause the process, but liens often survive, and foreclosure can still move forward later.
Can I get my home back if a lien was sold to an investor?
Yes, but only during the redemption period by paying back taxes or dues plus interest. If that period ends, the investor may take full ownership.
Take action now
Unpaid taxes and HOA dues may seem small compared to a mortgage, but in Arizona they can take away your home just as quickly.
You don’t have to face this alone. Click here to talk to Hope—she’ll help you understand your situation, explore your rights, and create a plan before it’s too late.
