Realtor | Corey Dwan

Tax Lien Sales

Bashful
Photo courtesy of Bev Alexander

The next tax lien sale will be held on:
Thursday, October 21, 2010, 9:00 A.M.
Blackstock’s Government Building
221 N. Wisconsin
Gunnison, CO 81230

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The Sale
General Information about Tax Lien Sales
The Tax Lien Sale is for the purpose of collecting unpaid taxes and provides the County and other taxing entities a way to operate even though some taxes remain unpaid. It is important to realize that the property is not being sold, just the taxes! This creates a tax lien against the property, which, if remains unpaid for three years can result in the loss of the property. For more information, see the section on Treasurer’s Deeds.
All property tax sales are offered with a “Buyer Beware” warning. There are no guarantees on any of the properties offered. It is the buyer’s responsibility to be aware of the risks involved in purchasing tax liens.

Advertisement of Tax Liens for Sale
The list of tax liens available for purchase is advertised for three consecutive weeks prior to the sale in either the Crested Butte News or the Gunnison Country Times. A list of the tax liens advertised for sale is available from the Treasurer’s office. Just send $2 along with your request to the above address. Don’t forget your mailing address! The Treasurer’s office keeps an updated copy of the advertising list posted in the office through the sale date.

Registration
Registration begins at 8:00 a.m. on the morning of the sale or you may pre-register the day before. You will need to fill out the registration form and a W-9 with your social security number or tax identification number. The registration form must indicate the exact name in which the tax certification is to be issued, the mailing address and your phone number for our records.

The Bidding Process
You must be present to participate in the bidding process. Gunnison County conducts their sale as an open bidding auction with the tax lien sold to the highest bidder. The bidding for each property starts at the total due of unpaid taxes, interest and fees. Any amount paid for property above this total is the “premium” and goes directly to the county general fund. Premiums are not part of the tax lien, do not collect interest, and are not returned to the buyer when and if the taxes are paid. Tax Sale Lien Certificates earn interest at a rate of 9 points above the Federal Discount Rate as of September 1st of the year of sale.
Employees of Gunnison County, members of their immediate family or agents thereof, are not allowed to participate in tax lien sales.

Payment
Payment must be made immediately following the sale. Payment must be in the form of cash, cashier’s check drawn on a Colorado Bank, or personal check.
All sales are final. No changes or refunds are made after the lien is sold. 
In the event the tax lien is declared erroneous, the redemption interest will be based on a reduced statutory rate no less than 8%.
Successful bidders are issue an Original Tax Lien Sale Certificate for each property. Originals are kept in the Treasurer’s office and a copy will be mailed to you approximately two weeks after the sale.

After The Sale
Payment of Subsequent Taxes
If the taxes become delinquent the following year(s), holders of tax lien certificates will be sent a notice in July or August, and will have first option to purchase the current year’s unpaid tax lien at that time. Subsequent taxes earn the same interest rate as the certificate amount and begin accruing interest upon receipt of the payment.

Redemption of Taxes
If the owner of the property redeems their tax lien, (ie., pays their taxes), you will receive a check from the Treasurer’s office which will include the taxes, fees and interest you purchased at the sale, together with interest that has accrued from the day of the sale to the date of redemption. You are not refunded for any premium bids that were paid.
In January you will be sent a 1099 for any interest earned for the year that the Certificate was redeemed. Be sure to let us know if you have a change of address after the sale!

Treasurer’s Deed
Three years after the date of the tax lien sale, the tax sale buyer may apply for a Treasurer's Deed to the property. A deposit of $500 along with the application form is required.

• Treasurer's Deed Application Form (PDF format).
• Treasurer's Deed Application Form (Word format).

It takes approximately five months for the deed application to be processed. During this time, the Treasurer's Office hires a title company for a List of Parties, sends certified mailings to everyone on the list, publishes a notice in the local newspaper, and sets a deed date. If the Tax Lien is not redeemed by 4 pm on the deed date, the property is deeded to the tax sale buyer.