HB2107 amends Arizona’s property tax lien foreclosure statute to limit when a tax lien purchaser, assignee, or the state may file an action to foreclose a property owner’s right to redeem. Under current law, a foreclosure action may generally be brought beginning three years after the tax lien sale and no later than ten years after the lien was acquired; the bill keeps that framework but adds a new prohibition for property that is the owner’s primary residence. For primary residences, the lien holder may not foreclose the right to redeem through a court action.
The bill also preserves foreclosure rights for non-primary-residence property and for certain assigned subsequent-year certificates of purchase, while clarifying that other holders’ certificates remain in place when one holder forecloses only its own assigned lien interest. It further extends the filing deadline by twelve months if a law or court order temporarily prevents foreclosure actions. The bill applies only to tax liens sold on or after its effective date.
Impact
HB2107 would change Arizona Revised Statutes section 42-18201 by creating a categorical bar on judicial foreclosure of the right to redeem when the real property is the owner’s primary residence, while leaving existing foreclosure remedies intact for other tax lien properties. It would affect tax lien certificate holders, assignees, county treasurers, and property owners, and it would shift collection efforts on primary residences toward non-foreclosure recovery tools such as setoff, wage garnishment, payment plans, or other lawful methods. The bill applies prospectively to tax liens sold after the effective date, so it would not alter liens already sold before then.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the bill text, the measure appears motivated by consumer or homeowner protection concerns, particularly for owner-occupied homes, while still preserving tax collection mechanisms for government and lien purchasers. The overall sentiment cannot be determined from the supplied history, but the proposal is structured as a targeted restriction rather than a broad overhaul of tax lien law.
Contention
The main point of contention is likely the balance between protecting homeowners in their primary residences and preserving the enforcement rights of tax lien investors and the state. Supporters would likely favor the bill as a safeguard against losing an owner-occupied home through tax lien foreclosure, while opponents may argue it weakens the value and enforceability of tax liens and could reduce participation in tax lien sales. A secondary issue is whether alternative collection methods such as setoff, garnishment, or payment plans are adequate substitutes for foreclosure in recovering delinquent taxes.