Bauza Holdings, L.L.C. v. Primeco, Inc
In Bauza Holdings, L.L.C. v. Primeco, Inc., 199 Ariz. 338, 18 P.3d 132 (App. 2001), one tax lien investor sought to foreclose the right of another tax lien investor through judicial foreclosure. Id. at 339, P1, 18 P.3d at 133.
Both investors were private purchasers of tax lien certificates and each held certificates for three nonconsecutive years of delinquent taxes. Id. at 340, P6, 18 P.3d at 134.
Reasoning that A.R.S. 42-17153(B)(3) (1999), amended by 2001 Ariz. Sess. Laws, ch. 242, 1, establishes parity, not priorities, between tax lienholders, we required the foreclosing lienholder to redeem or compromise competing liens to receive free and clear title to the property. Id. at 343, PP19-23, 18 P.3d at 137.
In Bauza, the Court interpreted the first clause, in conjunction with 42-18204(B), applicable to judicial foreclosures of redemption rights, as establishing parity among private tax lienholders.
Section 42-18204(B) provides: "After entering judgment the parties whose rights to redeem the tax lien are thereby foreclosed have no further legal or equitable right, title or interest in the property subject to the right of appeal and stay of execution as in other civil actions."