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  • Pre-Sale Procedures of the Tax Lien Sale

     

    Advertisement of Sale

    The list of tax liens available to purchase is advertised in a local newspaper for three consecutive weeks before the sale. The list is also available on the treasurer's website in a format that can be downloaded into a spreadsheet for analysis. A "condensed list" is posted online at the beginning of the tax sale. This is the advertised list, minus the tax liens that have been paid since the list was published.

    What you are buying

    The asset you are purchasing is the tax lien, not the property.

    This does not give you ownership or legal rights to the property in any way. Every parcel will be offered in compliance with Chapter 39, Article 11, of the Colorado Revised Statutes. View exit disclaimer policy page for links to third-party websites. Each parcel will be subject to online bidding and will be sold to the person who pays the highest amount, in excess of said taxes, penalty, interest and costs.

    Most people participate in the tax lien sale because the interest rates are better than those offered for savings accounts or Certificates of Deposit. Jefferson County has never deeded a house or building of substantial value for unpaid taxes. Individuals wishing to obtain property may wish to contact the Public Trustee regarding foreclosure sales.

     Caveat Emptor(Buyer Beware):

    • It is the bidders' responsibility to know what they are bidding on.
    • The tax schedule number and total tax lien dollar amount of each parcel will be displayed. All successful bids are final.
    • The certificate to be issued on a successful bid will be in the statutory form, showing the lawful rate of interest for the life of the certificate, the legal description, purchase amount, buyer's name (as entered on the registration form) and the date of the sale.Certificates will not be issued in a name other than the name or names on the IRS W9 form which is filled out in the registration process. MAKE SURE THAT YOU ENTER YOUR INFORMATION EXACTLY AS THE CERTIFICATE IS TO BE ISSUED ONTHE WEB SITE
    • Interest begins in October at the rate set after September 1st per annum. All county redemption's are made per CRS 39-12-111(2) (a) (b) but will be no lower than 8 percent per annum.

    Rate of Return

    The interest rate offered at each year's tax sale is nine points above the federal discount rate set on September 1 per Colorado State Statue 39-12-103(3). The interest rate you receive on your certificate will remain the same through the duration you hold that certificate. The interest rate in 2013 will be 10%.

    The Sale 

    • The tax lien sale auction is held each year in October. The sale this year will be held Oct 22-24, 2014.
    • To purchase the tax lien certificate, the successful bidder must often pay a premium price above the amount of the delinquent taxes. The premium is not paid back.
    • Interest is earned on the face amount of the certificate, which doesn’t include any bidding premium paid, from the date of the sale to the date that the property owner redeems the certificate by paying the delinquent taxes, interest and costs.
    • The property owner may redeem the property from the tax lien certificate holder at any time, from the day of the sale to the day a tax deed would be issued.
    • If the property owner does not redeem the property (pay the delinquent taxes), the tax lien certificate holder can pay the required costs and fees and apply for a Treasurer’s deed after three years.
    • Per Colorado State Statute 39-11-151, county officials and employees may not acquire land by tax sale.

     

    Register for the tax lien sale

    Last Updated: 8-19-2014