Q: Can a tax lien foreclosure affect credit score? Tax liens aren’t reported but what about tax lien foreclosures?

A: This is an important question regarding tax lien foreclosures and their potential impact on credit scores. While I can provide some general information, please note that for specific legal advice about your situation, you should consult with a qualified attorney in Arizona who specializes in foreclosure and tax law. Here's what I can tell you:

1. Tax liens and credit reporting:

As you mentioned, tax liens are no longer reported on credit reports. This change took effect in 2018 when the three major credit bureaus (Equifax, Experian, and TransUnion) removed all tax liens from consumer credit reports.

2. Tax lien foreclosures:

While the tax lien itself isn't reported, a tax lien foreclosure could potentially impact your credit in indirect ways:

a. If the foreclosure results in a deficiency judgment against you, that judgment could be reported on your credit report.

b. The loss of property through foreclosure might be reflected in public records, which some lenders may review as part of a comprehensive credit check.

3. Joint ownership implications:

Being a joint owner means you could be held responsible for the property taxes, even if you haven't been actively involved with the property.

4. Potential actions:

Given your situation, here are some steps you might consider:

a. Don't ignore the lawsuit. Ignoring it could result in a default judgment against you, which could have more severe consequences.

b. Consult with a local attorney who specializes in property tax and foreclosure law. They can review the specifics of your case and advise on the best course of action.

c. Investigate the possibility of disclaiming your interest in the property, if that's an option in Arizona.

d. If possible, try to negotiate with the tax authority or the entity pursuing the foreclosure to see if there's a way to resolve the issue without a full foreclosure proceeding.

5. Credit score considerations:

While protecting your credit score is important, it's also crucial to address the legal implications of the lawsuit. In some cases, taking action to resolve the issue might be better for your long-term financial health than trying to avoid any potential credit impact.

Remember, credit scores are complex and based on many factors. While this situation could potentially affect your credit, addressing it proactively is likely to be better than ignoring it.

Given the complexity of your situation and the potential legal and financial implications, I strongly recommend consulting with a local attorney who can provide personalized advice based on Arizona law and the specifics of your case.