Property Tax Liens In Colorado

Property Tax Liens In Colorado

Property Tax Liens In Colorado are actually TAX LIENS. However, you have the option to receive a “treasurer’s deed” after the redemption period.

The state has 64 counties. Each county has a County Treasurer who conducts tax lien sales.

You will earn 9% over the prime interest rate so your interest will fluctuate.

The delinquent property owner has 3 years to redeem after the sale so you could be sitting on the lien for a while.

Their sales are “premium bid”

Should the property owner “redeem” you do NOT get any interest on the “premium” amount. Not do you get the “premium” returned to you.

Prior to bidding, you must calculate how much you will invest in the “premium” to figure out your possible minimum profit.

You do have to register and you must be present at the auction. You will complete a W-9 form as well.

As in all other states, each county differs somewhat as to how they conduct their auction.

Many counties do a round robin type of bidding as others do an open outcry.

After the redemption period of three years, you are eligible to apply for a treasurer’s deed.

The county actually holds your tax lien certificate in Colorado and you are eligible to buy future year delinquent property tax liens on the parcels you hold.

You will return your tax lien certificate to the County Treasurer if successful and could possible be issued the treasurer’s deed.

Some counties also allow for the sale of tax liens left unsold at the public auction. These “county held” certificates are available to anyone wanting to purchase but many times are for property with minimal value.

Again, as in all other states, do your due diligence whether purchasing at public auction or over the counter on the tax liens left unsold.

Some of the larger counties perform their tax sales online and allow for a certain amount of due diligence online as well.