How to Buy a Tax Lien Certificate Colorado

Steps

1. Visit your favorite county website to get more information on the process. It varies per county. Some counties don't sell tax lien certificates; instead they sell tax deeds. Visit http://www.naco.org/ to find the county website.
2. Preregister for the tax lien sale of your choice.
3. Find out the available method of payment for the liens.
4. Attend the tax lien sale, and double check the accuracy of the county lists.
5. Be sure to find out the laws and timing of tax lien redemption.

Tips

• Sales are usually once a year. Usually you must attend in person.
• Some states are now holding their tax lien auctions online, such as Arizona.
• Either you bid down the interest rate, bid up the amount, or have a round robin or lottery type of sale. Find out ahead of time what type of sale the county is holding.
• Don't be shy. Speak to as many of the other bidders as you can at the sale to learn more.

Warnings

• Your investment is not liquid.
• Many people buy tax liens and mortgage notes expecting to get a house if the tax is never paid. Rarely does the property go into foreclosure, which doesn t mean the lien is a bad investment, just don t go in thinking you ll get a house from it.

Sources and Citations

• You can view a list of auctions and tax liens free at http://www.lienexchange.com/
• Register for a free account at http://www.taxsalelists.com/

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