The tax sale auctions in Colorado are held at the county level and once per year usually in the fall from October through December. As with all states, it is important to understand that Colorado handles their tax auctions slightly differently than other states so be sure to review the state statutes.
Matthew Roth provides a thorough overview in both his interview and the white paper statutory review. Here are the main points from those elements.
- All tax sales are held via online auction and registration requirements are the same for every county.
- The tax lien in the state of Colorado is a superior lien.
- The interest rate of return on the tax lien is nine points above the federal discount rate.
- Colorado is a bid up premium bidding process and the interest is not earned on the overbid amount.
- The winning bidder has rights to pay the subsequent tax amounts and they earn the same interest rate of return.
- The redemption period for tax liens in Colorado is three years from the date of the sale.
- “Any premium amount paid over the face amount of the tax lien is not recoverable.”
- An application for a Treasurer’s Deed can be filed after the redemption period expires and a judicial foreclosure process is not necessary.
The Colorado tax sale process is pretty straightforward but like all states it’s always important to conduct your due diligence research and ensure you have reviewed all the state statutes so seeking professional advice is always recommended. Be sure to review the interview with Matthew Roth and read his condensed white paper.