Tax Lien Sale Procedures
Pre-Sale Information
Post- Sale Information
Pre-Sale Information
General Information
The parcel you are purchasing is the tax lien, not the property.
Every parcel will be offered in compliance with Chapter 39, Article 11, of the Colorado Revised Statutes. Each parcel will be subject to online bidding and will be sold to the person who bids the highest amount, in excess of said taxes, penalty, interest, and costs.
This method of auctioning will provide all bidders with an opportunity to compete for each parcel. The County Treasurer may change the method of sale at his discretion prior to the commencement of the sale.
Advertisement of Sale
The list of tax liens available to purchase is advertised in the local newspaper, The Pueblo Chieftain, for three consecutive Saturdays beginning September 25, 2010. This list will also be available on the Treasurer’s web site (www.co.pueblo.co.us/treasurer). In addition to the original advertised list, a “condensed list” is posted on the Internet site that will be periodically updated to reflect payments that have been made after the original list was published.
TopSeminar Information
The Pueblo County Treasurer and the internet auction provider will conduct two Internet Auction Tax Lien Sale seminars which will be scheduled at a later date, but will be held at the Pueblo County Courthouse, 215 W. Tenth Street, Pueblo, Colorado, Commissioner’s Chambers, 1st Floor
Prohibited Buyers
No Pueblo County Official or employee may purchase a tax lien at the auction. This also applies to the immediate family or agent of a Pueblo County Official or employee.
TopRegistration
Registration will begin on October 1, 2010 through October 8, 2010, and can be completed at the office of the Pueblo County Treasurer, 215 W. Tenth Street, Room 110, Pueblo, CO 81003. The forms are available on line at http://www.co.pueblo.co.us/treasurer. Completed forms may be delivered, mailed or faxed to the Treasurer’s office at (719)-583-6526. All completed forms must be received by October 8, 2010 at 4:30 p.m. You must be approved by the County Treasurer before you will be accepted to bid on the authorized auction site. Bidders are responsible to ensure that the information is correct. Registration forms will be used to issue the certificate(s) of purchase, redemption check(s), and Treasurer’s deed(s). Certificates will not be issued in any other name(s) than provided on the registration form. Each buyer will be required to complete a form with name(s), social security number, address, telephone number, e-mail address, account and routing numbers in which all purchases shall be paid by automatic withdrawal from the bidder’s checking or savings account at the close of the auction . After the form has been completed the bidder will be assigned a bidder number and will be accepted to register on the authorized auction site. No registrations will be accepted after October 8, 2010 at 4:30 p.m.
TopInterest Rate
The interest rate offered at each year’s tax sale is nine points above the Federal discount rate set on September 1st per Colorado State Statute 39-12-103 (3). The interest rate you receive on your certificate will remain the same for as long as you hold that certificate. The interest rate for 2009 certificates sold in 2010 is %. Simple interest is calculated on a monthly basis and portions of a month shall be counted as whole months.
TopWhat You Will Be Purchasing
You are purchasing only the tax lien on the property. This does not give you ownership or legal rights to the property in any way. All buyers are encouraged to research all relevant state statutes relating to the tax liens in article 11 of title 39, Colorado Revised Statutes and elsewhere. Most people participate in the tax lien sale because the interest rates are much better than those offered for savings accounts or Certificates of Deposit.
TopThe Sale
The tax lien sale will be held as an on line public auction October 18 – 20, 2010.
The auction site (sri-auctionsonline) opens on October 18, 2010 at 8:00 a.m. Auction items commence closing every hour in batches of approximately 400 per batch beginning at 8:00 a.m. October 20, 2010 and continue to approximately 3:00 p.m.
The bidding sequence will be in item number order.
TopCaveat Emptor (Buyer Beware)
It is the bidder’s responsibility to know what they are bidding on. Particular attention should be given to the impact of a bankruptcy filing, subsequent to the purchase of a tax lien, which could have an affect on the tax lien sale certificate. The recommendation of the Treasurer is that you consult with private legal counsel prior to participation in the tax lien sale.
The item number and total tax lien dollar amount of each parcel will be displayed. All successful bids are final. No changes in, or cancellation of a purchased parcel will be made after a bid has been made on a parcel or the item has closed.
The certificate to be issued on a successful bid will be in the statutory form, showing the lawful rate of interest for the life of the certificate, the legal description, purchase amount, and the buyer’s name (as entered on the registration form), and the date of the sale. Certificates will not be issued in a name other than the name or names shown on the registration form. All certificates may be endorsed each year until redeemed. Interest begins in October at the rate set after September 1st per annum.
Post- Sale Information
Record of Purchase
Upon completion of the Tax Lien Sale, you will receive from the Pueblo County Treasurer an itemized list of each parcel purchased. Tax lien certificates will be kept in safekeeping at the office of the Pueblo County Treasurer. Leaving your certificates with the County Treasurer has the advantage of receiving payment sooner when redemption is made and allows for the endorsing without having to find your certificates and mailing or bringing them in.
TopRedemption
When the owner redeems the taxes you will receive notification by the County Treasurer and a check for the total redemption amount owed to you. If the certificate is in our safekeeping, we will process the redemption and send your payment to you.
Upon receipt of the certificate, you will receive a check, which will include the amount of tax you purchased plus the interest that has accrued from the day of sale to the date of redemption. You are not refunded for any premium amount or bidding fee.
The redemption period is three years from the year of the original tax sale. Certificates sold in 2010 are eligible for application of a treasurer’s deed in 2013.
In January of each year you will receive a profit report (1099 INT) for any certificates you were paid for during the year. It will give the amount of interest paid to you during this period. This report is sent to you for your records and for income tax purposes. We are required to report interest paid to our investors to the IRS on an annual basis.
TopEndorsement of Tax Liens
If the taxes for the following year become delinquent, you will be given the opportunity to pay the taxes and add them onto the certificate(s). This enables you to pay the delinquent taxes and add them to your existing tax lien certificate of purchase without participating in the tax lien sale. You will receive the same interest rate on the subsequent taxes as you did on the original tax sale purchase. Endorsements are processed in August. If your certificates are eligible for endorsement you will be notified by mail.
Liens not sold at the sale
Any tax liens not sold at the sale are held by the county and will be available to purchase, by assignment, through the Treasurer’s office beginning November 1, 2010. See “Assignment Of Certificates”
TopAssignment Of County Held Certificates
You will be required to pay all taxes, fees, costs and interest due. This process will transfer the certificate of purchase from the County of Pueblo to the name designated by you. Tax lien certificates will be kept in safekeeping at our office. Leaving your certificates with the County Treasurer has the advantage of receiving payment sooner when redemption is made and allows for the endorsing without having to find your certificates and mailing or bringing them in.
If the taxes for the following year become delinquent, you will be given the opportunity to pay the taxes and add them onto the certificate(s). This enables you to pay the delinquent taxes and add them to your existing tax lien certificate of purchase without participating in the tax lien sale. You will receive the same interest rate on the subsequent taxes as you did on the original tax sale purchase. Endorsements are processed in August. If your certificates are eligible for endorsement you will be notified by mail.
A listing of all available county held certificates of purchase for assignment is available for a fee, $35 for a diskette or a printout for $250.
Please direct further questions; to the Tax Lien Sale and Redemption Department at (719) 583-6682, (719) 583-6683, or (719) 583-6532.
Web site: http://www.co.pueblo.co.us/treasurer
E-mail: Darlene Bonfiglio