Tax Liens (Denver: sale, mortgage, loan)

[MinderB]

My husband and I are planning on relocating from the Seattle area to Denver in the next year and a half or so, and were interested in taking over some tax liens. Has anyone done much in this area, and how difficult is it to do?

Thanks in advance for any help or info!

[ColoWeb]

What do exactly do you mean by "in taking over some tax liens" ?

[steveindenver]

When someone does not pay (insert tax here, generally property tax) the municipality to which the taxes are owed can put a lien against it. This lien must then be paid before the title can change hands.

As a result in very rare cases you run into situations where someone might own the property outright but is unwilling or unable to satisfy the taxes and as such the city takes the property from the owner and sells it, usually at a substantial discount.

Generally though this only happens to property that is or should be abandonded, almost always in bad neighborhoods.

Now and then you run into people on late night television attempting to pitch the idea that if you pay them 500 bucks for a seminar they will give you the inside scoop on such "deals." The reality is this information is in almost every state public and easy to find and for the aformentioned reason regarding the condition almost certainly never worth it.

[ColoWeb]

Thanks Steve, While I knew what a lien was I never knew that other people can "take over it" as the OP said. Good to know - thanks again.

[jazzlover]

steveindenver has most of it wrong for Colorado property tax liens. First, the lien attaches to the property when the taxes are levied. If they are not paid timely (by April 30th if paid in one installment, and June 30th if paid in two installments), then the taxes become delinquent. Delinquent taxes are then advertised by the county treasurer, and a tax lien sale is held--usually sometime in November of each year. The tax lien certificates are sold at the sale, which is usually held as an auction, with the highest bidder receiving the certificate. If the property owner pays his taxes after the lien is sold, the certificate holder receives principal and interest for the time he or she has held the certificate (but does not receive back any premium that was paid at the auction). If the next year's taxes are not paid the property owner, the certificate holder can "endorse" on the certificate--that is, pay that year's taxes, adding that amount to the principal of the certificate. After 3 years (the original sale plus two endorsements), the lien holder may apply for a treasurer's deed on the property. If the property owner does not redeem with the redemption period for the treasurer's deed process, the lien holder will receive title to the property. Probably less than 1% of the properties sold at tax lien sale ever go to deed. The main reason for this is that the Treasurer's tax lien is basically senior to all other property liens, except an IRS lien. So, a mortgage holder (bank, etc.) will almost always pay the property tax lien, rather than lose their security on their loan.

If you want a more detailed description of the process, call any Colorado County Treasurer and they can fill you in.

[steveindenver]

Yeah ... so ... what I wrote.

[kenadams]

I am trying to compile a volume trend of Liens on commercial property in the Denver Metro area. does anyone know where I might get all of that information from?