HB 2878
Initials VP/DD Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: WM DP 9-0-0-0
HB 2878: judicial foreclosure; excess proceeds sale
Sponsor: Representative Liguori, LD 5
Caucus & COW
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
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 property to recover excess proceeds is
reasonable to be included in the action to foreclose the right to redeem. (Sec. 1)
2. Allows certificate purchase holders to request the court to determine if the sale of
property to recover excess proceeds is reasonable. (Sec. 2)
3. Specifies that a request for the court to determine if the sale of property to recover excess
proceeds is reasonable must be done any time before the judgement is effective. (Sec. 2)
4. Outlines that unless stated elsewhere, the sale must be less than 60 days after the date
of judgement. (Sec. 3)
5. Corrects the statutory reference for the minimum and opening bids. (Sec. 4)
6. Clarifies that to the extent a tax lien is not satisfied, that any liens and encumbrances on
the delinquent taxpayer and the delinquent taxpayer's other property are not affected.
(Sec. 4)
7. 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)
8. Makes technical changes. (Sec. 5)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note