Denver County Tax Liens

[Geoff A.]

Hi guys,

I was doing some research on last year's tax lien sales for Denver County in CO. I noticed that last year's auctions showed a premium averaging 10% for each lien sold, regardless of size. What's odd, is that the premium is not repaid if the lien is redeemed. This would put the buyer out of the money should a lien redeem in the first year based on the 10% annual interest rate. I don't understand how that makes any sense for an investor. Please tell me what I've missed.

Here are the rules for the auction. The auctions are conducted online through Real Auctions, I confirmed with them that I am reading the data properly and that premiums were paid. Thanks!