Frequently Asked Questions About Tax Lien Sale

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1. What happens if I do not pay my taxes?

2. How long do I have before the property tax is advertised for tax sale?

3. Do I have to pay more if my real property is advertised?

4. Do I lose my property if it goes through the tax sale?

5. When is the last day to pay to keep the property out of the tax sale?

6. How long do I have before the personal property tax is advertised for tax sale?

7. Do I have to pay more if my personal property is advertised?

8. Does Colorado have a "Homestead Exemption" for property taxes?

1. Q: What happens if I do not pay my taxes?
   
   A: The property tax lien will be sold at the annual Tax Lien Sale in October.
   
   Are there additional fees if my property goes to tax sale?
   
   If your property goes to the tax lien sale, you will be charged all delinquent interest at 12% annual rate up to the time of sale, tax lien sale interest from the month of the sale to the payoff( redemption), advertising fees, redemption fees, possibly deed fees and possibly distraint fees if your property is a mobile home.  If your taxes are sold at the tax lien sale and are not paid the following year or years, the subsequent taxes can be added to the certificate of purchase (this is called endorsement) and the pay off amount could involve multiple years. The entire certificate of purchase including all years must be redeemed together. The individual years on a certificate can NOT be paid separately. The tax lien buyer can apply for a Treasurer's deed to the property if the first lien has not been paid after 3 years from the date of the tax lien sale. This deed process can take a minimum of 6 months. The owner may pay the redemption any time up to the transfer of the Treasurer's deed. A Treasurer's deed gives title of the property to the tax lien buyer. However, a Treasurer's deed may still be contested for 7 more years or may be involved in a quiet title suit. Please call our office to obtain further information or see Tax Sale for more information.

2. Q: How long do I have before the property tax is advertised for tax sale?
   
   A: Real estate taxes are advertised for three consecutive weeks beginning in September. The advertising dates vary from year to year and it's best to pay before September 1st to avoid the advertising charge.

3. Q: Do I have to pay more if my property is advertised?
   
   A: Yes, there will be an additional advertising charge per each parcel that is advertised in the newspaper.

4. Q: Do I lose my property if it goes through the tax sale?
   
   A: No, you still have an additional three years before the tax lien sale buyer can apply for a deed to the property. However, the interest rate determined for that year and any additional years will accrue to the date of payment. If your taxes are sold at the tax lien sale and are not paid the following year or years, those taxes can be added to the certificate of purchase (this is called endorsement) and the payoff amount could involve multiple years. The entire certificate of purchase including all years must be redeemed together. The individual years on a certificate can NOT be paid separately. The tax lien buyer can apply for a Treasurer's deed to the property if the first lien has not been paid after 3 years from the date of the tax lien sale. This deed process can take minimum of 6 months and the owner may pay the redemption any time up to the transfer of the Treasurer's deed. A Treasurer's deed gives title of the property to the tax lien buyer.   However, a Treasurer's deed may still be contested for 7 more years or may be involved in a quiet title suit. Please call our office to obtain further information or see Tax Sale for more information.

5. Q: When is the last day to pay to keep the property out of the tax sale?
   
   A: You will need to pay before the start of the auction in October in order to keep it out of the sale. If you pay after that time, additional costs will be added.

6. Q: How long do I have before the personal property tax is advertised for tax sale?
   
   A: Personal property taxes are advertised in September. The advertising dates vary from year to year. It's best to pay before September 1 to avoid advertising charges.

7. Q: Do I have to pay more if my property is advertised?
   
   A: Yes, an additional advertising charge will be added.

8. Q: Does Colorado have a "Homestead Exemption" for property taxes?
   
   A: Colorado's "Homestead Exemption" does not affect property taxes.

Last Modified: Sep 8, 2011 09:55 AM