The 2009 Tax Lien Sale is scheduled for Wednesday, November 4, 2009. The interest rate for the 2008 taxes being sold at the 2009 is 10 percent. For additional questions, please call the Treasurer's office at 970-328-8860.
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Eagle County Treasurer Annual Tax Lien Sale
The following information is offered to answer your questions regarding the sale. If you have any additional questions please call us at 970-328-8860.
Date and Time
Tax lien sales take place each November. The 2009 tax lien sale is scheduled for Wednesday, November 4, 2009. Registration begins at 8 a.m.
Location
Eagle County Building, 500 Broadway, Eagle CO
Registration will take place beginning at 8 a.m. on the main floor in the Treasurer’s Office. The tax lien sale will take place on the third floor in the Eagle County Board Room. Locate a map and directions.
Advertisement of Sale
The list of taxes available to purchase is advertised for three consecutive weeks prior to the sale in the Eagle Valley Enterprise and will also be available on our website. A condensed list is issued the day of the sale. If you would like to receive a list of the taxes to be sold, prior to the day of the sale, please send a written request with your mailing address along with $2 to the Eagle County Treasurer, PO Box 479, Eagle CO 81631.
Registration
On the morning of the sale, you will need to fill out paperwork indicating the precise name in which the certificate is to be issued, the mailing address and phone number for our records. We will also need you to fill out a W-9 form for tax purposes; giving us the social security number of the individual investor or the Employer Identification number of corporations or companies purchasing tax liens. All information must be complete for you to participate in the sale. Only one bidder number will be issued per social security number/Employer Identification number. If you wish, you can print the attached registration form and W-9 form, fill them out ahead of time and bring them with you to registration the day of the sale.
The Bidding Process
You must be present to participate in the bidding process. Eagle County holds a round robin sale with premium bids accepted on tax amounts $7,500 and over. Remember, premium bids will not be refunded to you at the time the taxes are redeemed.
Rate of Return
The interest rate offered at each year’s tax sale is nine points above the discount rate set on September 1. The interest rate you receive on your certificate will remain the same for as long as you hold the certificate. The certificate rate for the 2008 certificates being sold at the 2009 tax lien sale is 10%.
What are You Purchasing?
You are purchasing the taxes due on property. This does not give you ownership or legal rights to the property in any way. Most people participate in the sale because the interest rates are much better than those offered in savings accounts or CD’s. Less than 1% of all tax liens actually end up going to deed. Individuals wishing to obtain property may wish to contact the Public Trustee regarding foreclosure sales.
Liens not Sold at the Sale
Any taxes not sold at the sale are held by the county and are, in some cases, available to purchase through the Treasurer’s Office. These generally involve properties of low value such as unbuildable strips of land or open space.
After the Sale
You will need to go to the Treasurer’s Office to pay for your purchases. Personal checks, cash, cashier’s check and certified checks are accepted. All payments must be made payable to Eagle County Treasurer, two-party checks will not be accepted. All funds are deposted that afternoon, so be sure you have appropriate funds in your account to cover your check. We will print out a receipt showing you the account numbers you purchased, and how much you paid for them. Approximately two weeks later you will receive a copy of your Certificates of Purchase.
If the taxes for the following year become delinquent, you will be given the opportunity in August to endorse the taxes onto the certificates you hold. This enables you to pay the delinquent taxes and add them to your existing tax lien certificate of purchase without attending the tax lien sale. You will receive the same interest rate on the subsequent taxes as you did on the original tax sale purchase. If your certificates are eligible for endorsement, you will be notified by mail in August.
When the taxes are redeemed, you will receive a check or notification. The Treasurer’s Office prefers to keep all original Certificate of Purchases, however if the Certificate of Purchase is in your possession, you will need to return it to our office. Upon receipt of the Certificate, you will receive a check, which will include the amount of tax you purchased plus the interest that has accrued from the day of sale to the date of redemption. You are not refunded for any premium bids that were paid.
The redemption period is three years from the year of the original tax sale. Certificates sold in 2009 are eligible for application of a Treasurer’s Deed in 2012. It is not required that three consecutive years of taxes be due. It is only required that the original lien remain unpaid for the three year redemption period.
In January, you will receive a 1099 showing the interest you earned for the year on your Certificates of Purchase that were redeemed. We are required to report interest paid to our investors to the Internal Revenue Service on an annual basis. Please be sure to let us know if you have a change in address so that we can get your 1099 form and your redemption checks to the correct address.
State Statutes Regarding Tax Lien Sales
Copies of the Colorado State Statutes are available online or at your local library. We are unable to provide copies of the statutes at this time.
Foreclosures
Property available for sale through foreclosure is handled by the Public Trustee. Inquiries should be made to the office of the Public Trustee at 970-328-8870.
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Tax Lien and Foreclosure Information Seminar
The Eagle County Treasurer and Public Trustee Office's are conducting a seminar for investors to learn more about the Tax Lien Sale process and Foreclosure Sales. The seminar is scheduled to take place on Tuesday, November 3, 2009 at 6 p.m. in the Eagle County Board Room on the third floor of the Eagle County Building.
The seminar is free of charge. If you wish to attend please RSVP to the Eagle County Treasurer’s Office by Monday, November 2, 2009 at 970-328-8860 or email treasurer@eaglecounty.us.
Tax Sale Proceedings
The following pertains to Eagle County’s Tax Sale only
Registration
Registration begins at 8 a.m. A Social Security Number or a Federal I.D number is required on the day of the sale. Without this information, registration will not be possible. You are only allowed one bidder number per Social Security Number.
Order of Sale
Strike-Offs, Real Estate/Special Assessments and then Mobile Homes.
Rotation Bidding
Rotation bidding will be done by seating order to allow participants the most equal bidding opportunities. We will draw to see which corner to start in once everyone is seated. We will issue one bidding number per person. Each account must have a representative present at the sale. For items more than $500 and under $7,500, the bidder must accept the bid or lose their turn. If the bidder declines, the item is then offered to the next person in rotation. Items $500 and less will awarded to investors who have had their name added to the list made available to all bidders during registration.
Strike-offs
Anyone with a legal interest in a particular parcel(s), and wanting a lien stricken off to him/her, must sign a declaration of legal (vested) interest, present documentary proof, and deposit an amount to cover these liens. We announce strike-offs at the beginning of the Tax Lien Sale. If other buyers do not object to the strike-off request, the sale of these liens will be considered final. Those purchasing strike-offs will not be eligible to purchase any other tax liens.
Open Space Parcels
Open space parcels will be identified as such during the sale, if this information is available to the Treasurer. Open space parcels have restricted uses. Please investigate these properties before purchasing the taxes. We will make no refunds after the sale.
Premium Bids
The liens will be offered for the amount advertised. Premium bids are bids made in excess of the lien amount. Premium bids may be made on parcels listed at $7,500 or more. We will not accept premium bids on parcels listed at less than $7,500. All premium bids are made at the investor's expense. Premium bids are not paid back to the investor, and no interest is earned on premium bids. The minimum premium bid is $50 with minimum raises of $20. Please note the cutoff amount for premium bids can change from year to year, depending on the amount of properites going to tax sale.
Tax Lien Sale Certificates of Purchase
All original certificates of purchase will be held in safekeeping in the vaults of the Eagle County Treasurer unless otherwise instructed by a formal written request. A safekeeping receipt and complete report of all tax lien sale purchases will be forwarded to the investor.
Subsequent Year's Taxes
After August 1 of each year, all tax lien sale certificate holders have first option to purchase any subsequent year’s taxes that remain unpaid. These tax liens will be endorsed onto the original certificate at the same rate of return.
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General Tax Sale Information
What is a Tax Sale?
Each year unpaid taxes on real estate, mobile homes and special assessment properties are sold to investors who attend the sale at the time determined by the County Treasurer.
Investing in tax liens through purchase at the tax lien sale is just that, an investment. You purchase the tax lien, NOT the property. Very few deed transfers occur as a result of a tax lien sale.
Why is the Tax Sale Held?
Tax sales are established by State Statute and held to enable the various authorities and the county government to continue to operate though some taxes are unpaid.
When are Tax Sales Held?
The tax sale date is subject to State Statute and is held after the delinquent tax listing is published in a local paper for three weeks.
Where is the Tax Sale Held?
Investors should check with individual counties for information on when and where their sales will be held.
Who can Become an Investor?
Any person who has monies to invest and is not an employee of the County or a relative of any county employee. Monies can be tied up for an indefinite period of time
Interest Rate
Each year the Colorado Banking Commission determines the rate of return. The annual percentage rate is set at nine points above the Federal discount rate for September 1 of that year.
Property Listing / Publication
A current property list will be available for real estate and special assessment parcels. Special assessment liens will be sold with corresponding real estate liens, if both are delinquent. The real estate parcels will be listed in the exact order of the sale and will include tax schedule number, owner’s name, legal description and the total amount due.
Element of Risk
It is important to remember the element of risk involved in the purchase of tax liens. The purchase of tax sale liens of properties under the control of Federal Deposit Insurance Corporation (FDIC) and Resolution Trust Corporation (RTC) and those affected by the Drug Enforcement Administration (DEA) could possibly result in the loss of interest. Identifying any potential problems in this area is impossible for the Treasurer’s Office. Please conduct your own investigation to reduce the possibility of loss of interest to you.
Parcels are subject to federal, state and local government regulations including, but not limited to, land use and environmental regulations.
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Delinquent Tax List
The list of delinquent taxes that are available to purchase at the Tax Lien Sale are advertised for three consecutive weeks prior to the sale in the Eagle Valley Enterprise. Please click here to view the list of delinquent taxes for Mobile Homes and Real Property, these lists will be updated weekly with any accounts that have been paid. If you have any questions please contact the Eagle County Treasurer's Office at 970-328-8860.
Colorado County Tax Lien Sales Dates
View the 2009 Colorado County Tax Lien Sale dates.
