Looking forward to the coming of the New Year we will be able to get new listings of tax lien certificates on our website for the great state of Arizona.  It is a state that offers 16% interest and has a compounded interest on top of subsequent taxing.  This is great for those of us who want to hang out and accrue interest on our investments.  It has a three year redemption period and will allow you the opportunity to do subsequent taxing. Subsequent taxing is a good thing because you can pay the taxes for the property that you have a tax lien on prior to the next year's tax lien auction.  This will make sure that you are getting in position to gain all three years of taxes providing it hasn't been redeemed on. If you do not pay the subsequent taxes then the tax lien will go up for auction the next year and you will have to purchase the lien from the person who bought it with the interest in order to get all three years so that you may begin the foreclosure process.  Once you have paid the subsequent taxes they will be added to the interest and then the next year will have the interest added to the compounded price of the taxes paid and the interest. For example, if you have paid 1,000 dollars for a tax lien then your interest is 16% making a total of 1,160 for the year.  So if you pay the subsequent taxes for the next year you will receive interest on 1,160 dollars and not just the 1,000 that the taxes are.  This can be great for those that want to invest while waiting and watching their money grow.  It is also a good way to secure your position of tax lien holder by paying the subsequent taxes.  If you pay all three years of taxes then you will be ready to move on to the tax foreclosure process which I will talk about another time.