I Own an Unpaid Tax Lien, What can I expect?

You now own a Tax Lien Sale Certificate Of Purchase.  What does that mean?  That means you hold a lien for the unpaid taxes on the property NOT the property.  The property owner can payoff the balance of your lien at anytime.  When that happens you will receive payment from the Treasurer's office, via ACH, for the tax amount and accrued interest.   The premium you paid to obtain the lien is non-refundable.  The payment settles the lien and no further action is required.   Your certificate earns interest at the rate specified for the sale that year.  The rate is determined by the State of Colorado in September of each year.
The certificate is valid for 15 years.  After 15 years the certificate expires and will be cancelled.

Endorsement

  • In August of any subsequent year, if the owner has not paid the taxes you will be eligible to pay that year's taxes and add that to your certificate and begin earning interest on the additional tax amount.
  • The Endorsement list is published each August and posted on the Douglas County Treasurer website.
  • Payment are processed on a first come first serve basis, meaning the payment we receive first will be the payment applied-Homeowner, other Investor or you.
  • Interest accrues on a monthly basis.  So any portion of the month results in a full month of interest on your lien at the certificate rate.

Assignment

  • Certificates of Purchase can be assigned from one investor to another.  You will need an original copy of the Certificate of Purchase.  The assignment portion of the Certificate is completed on the form and sent to the Treasurer's Office to transfer the lien from the current holder to the new holder.  This is VERY important if you want the redemption money to go to the correct payee.
  • Certificates may be assigned multiple times.  The assignment must happen on the original certificate each time to affect the transfer.