How Colorado Tax Liens Work
Colorado is a tax lien state, meaning when property owners fail to pay their property taxes, the county sells tax lien certificates to investors rather than the property itself. As an investor in Colorado tax liens, you pay the delinquent taxes and earn 9% annual interest when the property owner redeems.
Colorado Redemption Period
Property owners in Colorado have 36 months to redeem their tax lien by paying the delinquent taxes plus 9% interest. If the owner doesn't redeem within this period, you may be able to foreclose and potentially acquire the property.
Calculating Your Colorado Tax Lien ROI
Use the calculator above to estimate your potential returns on Colorado tax lien investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: Colorado's statutory 9% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property