AZ SB1426

Amends Arizona's tax lien foreclosure process to require public auction of properties instead of direct deed transfer to the judgment creditor after foreclosure of redemption rights.

Establishes that property sales must occur within six months after entry of a judgment foreclosing the right to redeem, with a minimum bid set at the property's limited cash value for the first auction and taxes, penalties, interest and costs for any second auction.

Requires the county treasurer to mail notice to the former property owner and recorded lienholders after sale, providing information about the purchase price, debts owed, and the right to claim surplus monies within six months.

Creates procedures for distributing surplus proceeds from property sales, allowing unclaimed surplus to be treated as unclaimed property after five years and permitting third parties to charge fees (up to $500) for identifying rightful owners.

Allows third parties to charge finder's fees of up to $500 or 30 percent of amounts claimed (with higher amounts requiring notarized contracts) for helping locate owners of surplus proceeds, provided disclosure of fees is made in writing.