Colorado Counties
State Auction Process in Colorado
Colorado is a tax lien state. Colorado is a tax lien state. This means that if a property owner fails to pay their property taxes, the county can place a tax lien on the property. The tax lien gives the county the right to collect the taxes, plus interest and fees, from the property owner.
When property owners fail to pay their property taxes, a tax lien is placed on the property by the county treasurer. Each year, the county treasurer holds a tax lien sale to sell the delinquent tax liens to investors. The sale is typically conducted as a public auction, either in-person or online. The auction process for tax liens in Colorado is conducted by the county treasurer’s office. The auctions are typically held on the first Tuesday of each month at 10:00 a.m. at the county courthouse.
To participate in an auction, you must register with the county treasurer’s office. You can register online or by mail. Once you are registered, you will be able to bid on tax liens at the next auction. Interested investors bid on the tax liens, starting with the amount of the delinquent taxes owed. Bids are placed in competitive increments, and the highest bidder wins the tax lien.
The winning bidder receives a tax lien certificate for the property, which represents their claim on the unpaid taxes. The certificate includes the amount of the lien, the property details, and the interest rate. After the tax lien sale, the property owner enters a redemption period, during which they have the opportunity to pay off the delinquent taxes plus interest to redeem the property. The redemption period in Colorado is three years.
To redeem your Colorado property following the tax lien sale, you must pay:
-the amount of the delinquent taxes
-the amount of the delinquent interest
-costs, like newspaper advertising fees
-redemption interest from the date of sale, and
-all taxes accruing on the home after the sale, which the purchaser paid, and that are endorsed on the certificate of purchase, plus redemption interest.
During the redemption period, if the property owner fails to redeem the tax lien, the investor may pay subsequent property taxes on the property. These subsequent tax payments accrue additional interest. The interest rate on tax liens in Colorado is determined through a competitive bidding process at the tax lien sale. The interest rate can range from 9% to 15% per year, depending on the winning bids.
If the property owner does not redeem the tax lien within the redemption period, the investor may initiate a foreclosure process to acquire the property. Foreclosure procedures vary depending on the county in Colorado.
When property owners fail to pay their property taxes, a tax lien is placed on the property by the county treasurer. Each year, the county treasurer holds a tax lien sale to sell the delinquent tax liens to investors. The sale is typically conducted as a public auction, either in-person or online. The auction process for tax liens in Colorado is conducted by the county treasurer’s office. The auctions are typically held on the first Tuesday of each month at 10:00 a.m. at the county courthouse.
To participate in an auction, you must register with the county treasurer’s office. You can register online or by mail. Once you are registered, you will be able to bid on tax liens at the next auction. Interested investors bid on the tax liens, starting with the amount of the delinquent taxes owed. Bids are placed in competitive increments, and the highest bidder wins the tax lien.
The winning bidder receives a tax lien certificate for the property, which represents their claim on the unpaid taxes. The certificate includes the amount of the lien, the property details, and the interest rate. After the tax lien sale, the property owner enters a redemption period, during which they have the opportunity to pay off the delinquent taxes plus interest to redeem the property. The redemption period in Colorado is three years.
To redeem your Colorado property following the tax lien sale, you must pay:
-the amount of the delinquent taxes
-the amount of the delinquent interest
-costs, like newspaper advertising fees
-redemption interest from the date of sale, and
-all taxes accruing on the home after the sale, which the purchaser paid, and that are endorsed on the certificate of purchase, plus redemption interest.
During the redemption period, if the property owner fails to redeem the tax lien, the investor may pay subsequent property taxes on the property. These subsequent tax payments accrue additional interest. The interest rate on tax liens in Colorado is determined through a competitive bidding process at the tax lien sale. The interest rate can range from 9% to 15% per year, depending on the winning bids.
If the property owner does not redeem the tax lien within the redemption period, the investor may initiate a foreclosure process to acquire the property. Foreclosure procedures vary depending on the county in Colorado.
Foreclosure in Colorado
Colorado is a nonjudicial foreclosure state, meaning that the lender does not have to go to court to foreclose on your home. The foreclosure process moves quickly and is often completed in 4 months through a public trustee.
Non-Judicial Foreclosure Process in Colorado
Quick Facts
In Colorado, the non-judicial foreclosure process is available when a deed of trust includes a power of sale clause. Many Colorado deeds of trust have a provision that requires the lender to send a notice, commonly called a “breach letter,” informing you that the loan is in default before the lender can accelerate the loan. The breach letter gives you a chance to cure the default and avoid foreclosure. Here is an overview of the non-judicial foreclosure process:
1. Notice of Election and Demand (NED): The lender files a Notice of Election and Demand (NED) with the public trustee, initiating the foreclosure process. The NED contains information about the default, the amount owed, and the intent to proceed with foreclosure.
2. Recording the NED: The public trustee records the NED with the county clerk and recorder, officially establishing the foreclosure process.
3. Foreclosure Sale Date: The public trustee sets a foreclosure sale date, which must be at least 110 calendar days but no more than 125 calendar days from the recording of the NED. This provides a notice period to the property owner.
4. Publication of Combined Notice: The public trustee publishes a Combined Notice of Foreclosure and Sale in a local newspaper for five times over four consecutive weeks. This publication period ends 45 to 60 calendar days before the first scheduled sale date. The notice provides information about the property, the foreclosure sale, and the redemption period.
5. Notice of Intent to Cure: The property owner has the right to file a Notice of Intent to Cure, indicating their intention to bring the loan current and stop the foreclosure process. The Notice of Intent to Cure can be filed anytime up to 15 calendar days before the first scheduled sale date.
6. Cure Statement: The public trustee requests a cure statement from the holder of the evidence of debt (usually the lender). The cure statement outlines the amount necessary to cure the default. The public trustee must receive the cure statement within 10 business days of the request, but no later than the eighth calendar day before the sale.
7. Foreclosure Auction: If the property owner does not file a Notice of Intent to Cure or if the cure statement is unsatisfactory, the property proceeds to the foreclosure auction. The property is sold at public auction to the highest bidder.
8. New Owner: The highest bidder at the foreclosure auction becomes the new owner of the property, subject to any existing liens or encumbrances.
1. Notice of Election and Demand (NED): The lender files a Notice of Election and Demand (NED) with the public trustee, initiating the foreclosure process. The NED contains information about the default, the amount owed, and the intent to proceed with foreclosure.
2. Recording the NED: The public trustee records the NED with the county clerk and recorder, officially establishing the foreclosure process.
3. Foreclosure Sale Date: The public trustee sets a foreclosure sale date, which must be at least 110 calendar days but no more than 125 calendar days from the recording of the NED. This provides a notice period to the property owner.
4. Publication of Combined Notice: The public trustee publishes a Combined Notice of Foreclosure and Sale in a local newspaper for five times over four consecutive weeks. This publication period ends 45 to 60 calendar days before the first scheduled sale date. The notice provides information about the property, the foreclosure sale, and the redemption period.
5. Notice of Intent to Cure: The property owner has the right to file a Notice of Intent to Cure, indicating their intention to bring the loan current and stop the foreclosure process. The Notice of Intent to Cure can be filed anytime up to 15 calendar days before the first scheduled sale date.
6. Cure Statement: The public trustee requests a cure statement from the holder of the evidence of debt (usually the lender). The cure statement outlines the amount necessary to cure the default. The public trustee must receive the cure statement within 10 business days of the request, but no later than the eighth calendar day before the sale.
7. Foreclosure Auction: If the property owner does not file a Notice of Intent to Cure or if the cure statement is unsatisfactory, the property proceeds to the foreclosure auction. The property is sold at public auction to the highest bidder.
8. New Owner: The highest bidder at the foreclosure auction becomes the new owner of the property, subject to any existing liens or encumbrances.
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically four months
– Right of Redemption: Yes
– Deficiency Judgments Allowed: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically four months
– Right of Redemption: Yes
– Deficiency Judgments Allowed: Yes