Colorado is a lien state. The county treasurer conducts tax sales in Colorado. The interest rate is 9% over prime, so it fluctuates with the prime rate. The redemption period is three years. As in Alabama, premium is bid in Colorado without bidding down the interest. Unlike Alabama, you do not get any interest on your premium nor do you get your premium back. The municipality keeps your premium even if the lien is redeemed. This lowers your rate of return. Before you bid at the sale, you must calculate just how much you are willing to spend in premium based on the minimum profit you are willing to accept.
Registration prior to the sale is required, and you must be present at the sale in order to bid. Each buyer must complete a registration form and a W-9 form. Counties differ as to bidding procedures, so check this out beforehand with the county treasurer’s office. Some counties have rotational bidding instead of open bidding. In counties that use open bidding, sometimes only the premium amount is bid. Please keep in mind that if only premium is being bid, you will also have to pay the amount due for the property in addition to whatever your bid is.
If the lien has not been redeemed after three years, the buyer can apply for and receive a treasurer’s deed to the property. Buyers return their certificates to the county treasurer and deposit expense money. After a title search, advertising, and notification of all interested parties, a treasurer’s tax deed is issued if there has been no redemption. Assignment of left over tax liens is available in some, but not all, counties. The larger counties in Colorado do have tax assessment and tax sale information online. Also a few of the counties have tax sales online.
Summary courtesy of
Joanne Musa's
State Guide