UNDERWRITING Q&A: What are the guidelines for insuring following a Sheriff’s Sale in Arizona?

A:  You must review the Order Authorizing the Sale.  The Court’s Order should set forth rights of redemption following the sale.  It is very important that we verify that all applicable redemption periods have expired.  The general rule is that the owner of the property will have a right of redemption for 30 days to six months after the Sheriff’s Sale.  Once the owner’s right of redemption has expired, lienholders on the property will have a right of redemption of an additional five days each in order of their lien priority.  Any delinquent property taxes will have to be brought current.  We will also want to verify that the Order Authorizing the Sale has become final and non-appealable.

Always contact your regional underwriting counsel if you are asked to insure a property that has been the subject of a Sheriff’s Sale.