Sale Type: | Tax LienA legal claim or right against a property that serves as security for a debt or obligation owed by the property owner. Certificates |
Interest Rate: | 9% |
Bid Method: | Highest Bid |
3 Years | |
Sale Date(s): | October – December |
Statute Section(s): | |
Yes | |
State Website |
Colorado State Overview
Colorado is classified as a tax lien certificateA legal document issued by a government authority when a property owner fails to pay property taxes, granting the certificate holder a lien on the property. state. County tax sales are typically held each year between October and December. The county posts a list of all tax delinquent properties prior to September first of each year. The county sends out certified notification letters to the last recorded address of the property owners as well as all parties with a vested interest in the property being sold. The county also publishes a notice of the impending sale in local newspapers for a period of four consecutive weeks. All affected property owners have the right to redeem their property by making a full payment on their delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property., penalties, and related fees prior to the posted deadline. All properties that are not redeemed will be sold at a public auction held by the respective county. The county treasurer is responsible for conducting and officiating all tax liens sold. The starting bid is the combined total of all delinquent taxes, penalties, and fees.
Tax liens are purchased with a redemption period of three years. The original property owner can redeem their property ownership at any time during the three year redemption period by submitting a full payment of all delinquent taxes, penalties, and any related fees along with the designated interest rate. If the property owner does not redeem the property during the three year redemption period, the buyer may apply for a deed to the property by presenting the tax lien certificate and paying off the property's unpaid tax balance.
Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government.
Colorado uses the “Premium Bid” method. Counties that use this method will have a starting bid that includes all delinquent taxes, penalties, and fees. Bidding starts at the set minimum and is bid up in price until the bidding stops. The highest bidder is awarded the tax lien to the property.
Many counties in Colorado, especially the larger ones (more population like Denver County, El Paso County- Colorado Springs, Adams County- Aurora, Jefferson County- Lakewood, and Larimer County- Fort Collins ) may use realauction.com for online bidding. They have some wonderful educational opportunities to get you familiar with bidding prior to the auction's start. Be sure to take advantage of that!
NOTE: In Colorado, the bidder does NOT receive back any premium bid over the tax lien amount or any interest on that amount.