Tax Lien Sale in Weld County Colorado

7 Replies

I’m interested in purchasing my first tax lien property in Weld County Colorado. I reside in Texas. Weld County have a their tax sale 1x per year in October so I’ve been doing my research prior to the sale so I can be prepared. During my research I read about potential pitfalls “Strips, SIDS, Minerals and Contamination”. What do I need to do during my due diligence to ensure I don’t run into this problem. Any other tips and suggestions is appreciated. Thanks in advance.

@Shevaughn Rawlins Use the search feature and read up on a tax lien posts. Know that tax liens are state specific (each state has their own laws) and even county specific about how the laws are executed. Some counties here do it on-line and some you have to attend in person and bid.

Weld county is huge so on one side say near Mead will be way different in value from say a property in Grover.

Are you investing for the interest or in an effort to acquire the property via an eventual tax deed?

Owning the property long-term is one of the best strategies for these tax properties because it takes the resale & title insurance issues off the table.

I always have the best luck calling ahead and asking questions to the county here is my list for your situation:

1) Can I purchase at your tax sale while living in Texas or do I need to be there in person?

2) What are your payment options (cashiers check, cash, personal check, credit card)?

You should now download and install Google Earth on your computer and look at the selection of older photos for the land you want to buy.  Screenshot and make a gallery of photos so you can quickly scroll and pinpoint potential issues.  Mineral rights on property in Colorado require a high amount of research.  Contacting the county assessor and asking if someone else is paying for mineral rights on the land is a good start.

Finally, always assume someone else wants that tax property you are looking at.  Have another one that you would want to bid on in-case the first gets taken.

Good luck, hope you share your results with us, we enjoy the experience!

The tax lien business is really a neat one, if you have the patience for it.  There's a thread with some good info here:  https://www.biggerpockets.com/...

As for your question about some of the pitfalls, it comes down to research.  You can do a GIS map search in most CO counties, then further searches on the county recorder's site on a particular parcel.  There are junk parcels for sure, for one reason or another, that you just wouldn't want to own.  And there are some potentially valuable ones, if you're willing to do the tedious work of going through the delinquent parcels list, and finding them.  Those tend to get bid up at auction, especially in the more populated counties.  Keep in mind though, if you're looking to eventually acquire the property, that most will get redeemed, and that's the end of the story.  You'll hopefully make enough interest on those to cover the premium you paid.

Also, keep in mind, it's about 4 years until you can actually get a Treasurer's Deed in your hand for a parcel.  It'll have a bit of a cloud on its title, for 9 more years, for merchantability, but you can erase this with a quiet title action.  (Or just sell it with a quitclaim deed) All of this takes time, and you just have to budget for it all.  But in the counties that still do live auctions, it's the same people, year after year, so, something keeps us coming back :-)

Good luck!

Originally posted by @Vik V. :

The tax lien business is really a neat one, if you have the patience for it.  There's a thread with some good info here:  https://www.biggerpockets.com/...

As for your question about some of the pitfalls, it comes down to research.  You can do a GIS map search in most CO counties, then further searches on the county recorder's site on a particular parcel.  There are junk parcels for sure, for one reason or another, that you just wouldn't want to own.  And there are some potentially valuable ones, if you're willing to do the tedious work of going through the delinquent parcels list, and finding them.  Those tend to get bid up at auction, especially in the more populated counties.  Keep in mind though, if you're looking to eventually acquire the property, that most will get redeemed, and that's the end of the story.  You'll hopefully make enough interest on those to cover the premium you paid.

Also, keep in mind, it's about 4 years until you can actually get a Treasurer's Deed in your hand for a parcel.  It'll have a bit of a cloud on its title, for 9 more years, for merchantability, but you can erase this with a quiet title action.  (Or just sell it with a quitclaim deed) All of this takes time, and you just have to budget for it all.  But in the counties that still do live auctions, it's the same people, year after year, so, something keeps us coming back :-)

Good luck!

 I am researching Colorado tax sales now. Is the 9 year cloud on the title because of the statute that allows an owner with a disability up to 9 years after the deed was issued to dispute the deed?   Are you aware of any other situations where someone could contest the deed after it was issued (other than a person with a disability). 

Thanks!