Douglas County CO - Tax Lien Sales

Douglas County CO - Tax Lien Sales

Too good to be true - then it probably is!

Suddenly there has been several people inquiring about getting a home using a tax lien sale.
This may be since today we saw a "infomercial" on one of the main network channel advertising how you could get a home for pennies on a dollar. I don't know about you, but it sure sounded "fishy", we felt that the only person getting rich is the person selling their system to purhcase the tax liens!
So, here is some information on our local county tax lien sale, Douglas County CO. Since each county can have their own rules, please check with your county in question if you want more information. This information should be FREE from the county.

Douglas County Colorado: Tax Lien Sale Information

The Tax Lien Sale occurs once a year, usually in mid-November. If you want to purchase a tax lien you have to pre-register and be present (our your representative) at the day of the sale. You will have to pay by personal check or by certified funds at the end of the sale. You can purchase as many tax liens as you would like, that is, if you are the HIGHEST BIDDER. This is an AUCTION, so the tax lien goes to the highest bidder.

Tax liens sale DOES NOT make you the owner of the property! You will become a lien holder. Think of the tax lien as an investment. You buy it and hold it until somebody; the owner, a senior lien holder etc. redeems the lien. You will receive interest on the lien, which is predetermined. Last year it was 15%.

Tax Liens are not a get rich quick or get a house for next to nothing type of an investment.

There are several potential risks on purchasing a tax lien. Here are just a couple of them:

You need to decide the investment potential of the particular tax lien you are interested in purchasing. Many liens are paid back (redeemed) within 6 months from the sale of the tax lien, which means the accumulated interest is minimal.

Bankruptcies - the owner could file a bankruptcy making your investment go down the drain.

Senior lien holder can buy your lien out at any time.

The following year another "investor" could buy a junior tax lien on the same property.

There may be any other liens on the property.

GETTING THE HOME - BECOMING THE OWNER - happens app. 2% of the time
In Douglas County only app. 2% of the tax liens turn into Treasurer's Deeds , meaning the lien holder gets the home. In order to apply for the Treasurer's Deed you need to have had the tax lien for 3 years. Once 3 yrs has past and you apply to get the Treasurer's Deed the owner and any other senior lien holders are notified, several times and the information is posted in a newspaper. The owner or any seniro lien holders can then redeem the lien from you - or buy it back if you will.

These are just some basics about Tax Lien sales in Douglas County Colorado.

For more information, you can contact us 303.710.2609 or send us an e-mail homes@kennaandco.com

Final note: Purchasing a tax lien does note make you the owner of the property. It can be a good investment. but is not a instant get rich scheme.

Brian and Rita Burke
Kenna and Co. - Real Estate Solutions
www.KennaRealEstate.com