Understanding the Tax Lien Sale Process in Colorado

What Is a Tax Lien Sale?

A tax lien sale occurs when a property owner fails to pay their property taxes. The county then sells a lien on the property to investors, allowing the government to recover the unpaid taxes. The investor pays the delinquent taxes and, in return, earns interest until the lien is redeemed by the property owner. If the lien is not redeemed, the investor may eventually apply for a Treasurer’s Deed, although this is rare—less than 1% of liens result in deed transfers in most counties.

See the County Closure list on the COCRS website.

• Annual Events: Tax lien sales are held once a year, typically in the fall. Each county sets its own date, often between October and November.
• Online Auctions: Many counties, including El Paso and Mesa, conduct their sales online through platforms like RealAuction, SRI, or GovEase.
• Interest Rates: The interest rate is set annually, typically nine points above the federal discount rate. For 2025, rates range from 14% to 15% depending on the county.
• Buyer Beware: Investors purchase the tax lien, not the property. Due diligence is crucial—counties do not guarantee the quality or buildability of the property.

How to Participate

1. Register: Investors must register with the county or the auction platform.
2. Research: Review the list of delinquent properties, which is published in local newspapers and on county websites.
3. Bid: Participate in the auction by bidding on the tax liens.
4. Redeem or Acquire: If the property owner pays the taxes, you receive your investment plus interest. If not, you may apply for a deed after a statutory period.

Stay Updated with COCRS

To keep track of county schedules and closures, visit the Consolidated County Record Systems (COCRS) website. They maintain a continually updated list of County Closures and tax sale schedules.

This resource is especially helpful during the fall season when counties update their systems and prepare for tax lien sales.