Tax Lien Sale Procedure

The sale of Montrose County delinquent tax and special assessment tax liens will be held on October 28, 2010. The sale will commence at 10:00 a.m. and will be conducted at Friendship Hall at the Montrose County Fairgrounds, 1001 N. 2nd Street, Montrose Colorado. Turn north on Lot Avenue and go two blocks to Friendship Hall (one block north behind Mc Donald’s at 1035 E Main Street).

Registration begins at 8:00 a.m. on October 28, 2010 at the office of the Montrose County Treasurer at 320 S. 1st St.-Room 106, in the Courthouse. Please keep in mind registration will close at 9:30 a.m.

All bids must be remitted by cash, certified checks, bank cashier’s checks, or personal checks guaranteed by irrevocable letters of credit from the bank on which the check is drawn for first time bidders. The sale will be held as in previous years. The chairs will be numbered from 1 thru 150 and you will be sitting in the chair that corresponds to your bidder number. The bidding will be conducted in a “round robin” bidding process and proceed around the room with each bid. A number will be drawn and the person with that number will start the bidding process. We will then proceed in numerical order with each succeeding bid. If a buyer should pass on his or her turn, that buyer will be required to wait until his or her turn comes around again in order to bid again.

Each buyer will be required to complete a W-9 form (Internal Revenue Service) with name, address, telephone number and social security number or federal tax identification number. Tax Lien Sale Certificates are prepared from this information. After the form has been completed, he will be assigned a bidder number and card.

It is the buyer’s responsibility to know the quality of the property on which they are paying taxes and receiving a lien. Buyers must rely entirely on their own information, judgment and inspection of the property records. Particular attention should be given to the impact of a bankruptcy filing which could place a cloud upon the tax lien sale certificate. The Treasurer will use prudent judgment to the best of her knowledge as to the status of any properties offered. Buyers are responsible to research that the information is correct.

The sequence of the published list will be followed as closely as practical during the Tax Lien Sale. There will be a listing provided to each buyer of property tax liens to be sold available for each bidder.

Each parcel will be offered in compliance with Title 39, Article II, of the Colorado Revised Statutes.

The index number and the amount of each parcel or unit to be sold will be read only once. All successful bids are final (assuming the buyer does not default in payment of same). No changes in, or cancellation of, parcels purchased can be made after the lien is sold.

The sale will be conducted as rapidly as possible, consistent with the objectives of the sale and fairness to all buyers. Due to many complaints from buyers at previous sales we have agreed to NOT ALLOW AGENTS to participate in the sale. The buyers feel it is not fair for the buyers with agents to be able to purchase more parcels than the individual bidder. The sale is scheduled to begin at 10:00 a.m. and will continue until all parcels are sold.

After all real property parcels have been sold, mobile homes with 2009 taxes due in 2010 will be offered for sale. If the certificate is not redeemed within one year from the date of sale, the certificate holder may be issued a Certificate of Ownership. This allows the holder of the certificate to apply for a title if the mobile home is sitting in a mobile home park or on land that is not owned by the owner of the mobile home.

A Tax Lien Sale Summary Report is generated by the Treasurer for each buyer and will be available to you in the Treasurer’s office, Room 106. Attach your payment for the total amount due to your buyer's card and turn it in to one of the employees. Payments must be received in our office by 1:00 p.m.

Tax Lien Sale Certificates of Purchase

A Tax Lien Sale Certificate of Purchase will be issued for each property and will be in the statutory form showing the property description, purchase amount, rate of interest, buyer’s name (s) and the date of the sale. If delinquent taxes occur in the future the certificate holder may endorse the amount of delinquent taxes and lawful charges on his certificate until redemption.

Redemption Interest

Interest begins to accrue in the month the certificate is issued. The interest rate for the Tax Lien Sale Certificates of Purchase for 2009 taxes due in 2010 will be determined on Sept 1, 2010. The rate is established by adding nine percentage points to the federal discount rate, and rounding to the nearest full cent.

Prohibited Buyers

No Montrose County official or employee or immediate family members may purchase a tax lien at this sale. No buyer agents will be permitted at tax lien sale. Only individuals buying tax liens on their own behalf will be allowed to participate.

General Information

It must be understood that the sale and purchase of the tax or special assessment lien at a tax lien sale does not, as it might under simple sales and purchase agreements, convey the right of possession, use improvement or access to said property. The buyer is issued a Tax Lien Sale Certificate of Purchase which is a properly recorded lien and on which he/she is entitled to interest. The lien may be redeemed at any time prior to the issuance of a Treasurer’s Deed.

If the lien remains unredeemed, and becomes eligible for a Treasurer’s Deed, the certificate holder must make application to the Treasurer. The procedural process requirements normally take six months to accomplish. Extenuation of the time period may occur when there are complex problems related to the property. Deed applications may be made after the Tax Sale prior to the third anniversary date of the certificate. When application is made, moneys must be deposited to pay all related deed expenses. The deed application processing costs are recoverable if the property is redeemed; however, no redemption interest is earned on the deed expense deposit. Prior to receiving a Treasurer’s Deed, all subsequent taxes, special assessment liens and current taxes must be paid.

Note

Redemption interest for 2009 Tax Lien Sale Certificates of Purchase will be determined. Portions of a month shall be counted as a whole months pursuant to Colorado Revised Statutes.

Wrongfully Sold Liens

If a lien is wrongfully sold and the County must pay the certificate holder the accrued interest, the rate will be calculated as set forth in Section 39-12-111, Colorado Revised Statutes.

Publication

The delinquent tax lists will be published in the Montrose Daily Press. They will also be available on the Delinquent Tax Sale List page. Click on the Treasurer’s department and proceed from there.

If there are further questions, please call (970)249-3565