Colorado Tax Lien - Public Sale Requirement Question
We are in the process of foreclosing on some vacant land in a small county in the mountains. This is the first one we have started after the new legislation went into effect which requires all a public auction be held prior to the issuance of a treasurer's deed (CO Rev Stat § 39-12-103 (2024)). This county is stating that the starting auction amount can only include the principal amount of the certificates which we have paid over the last 4 years, but cannot include the accrued interest or the auction fee the County charges investors to start the process (which total ~$4,000 in this case).
The treasurer agrees that these amounts ARE included in the amount that the property owner would need to pay to remove the lien, but they are stating that those amounts cannot be included for the purposes of the public auction.
I don't interpret the new (2025) statutory language to exclude accrued interest in the public bid amount. Why would any investor every purchase a tax lien if any 3rd party can just wipe them out by purchasing the same lien without any of the accrued interest or fees 3-years later?
Has anyone else had this experience? Does anyone by chance have links to public auctions that include accrued interest in the starting amount?
Thanks for any advice or feedback you can provide!
Ross
Most Popular Reply
The county is mistaken. Their take is silly as there would be no benefit to holding the certificates, paying subsequent taxes and moving to foreclose.
Refer them to C.R.S. 39-11.5-108 and C.R.S. 39-11.5-109, which are closely related. These statutes clarify: The opening bid is the total of taxes owed, interest accrued to the lienholder, fees, and costs incurred by the Treasurer for processing the deed and conducting the auction, not merely the taxes owed.