Buying real estate can be a smart way to build wealth, especially if you're looking at tax delinquent properties in Colorado. These properties often sell for less than market value, giving investors a chance to make a strong return. In this guide, you'll learn how to find these deals, understand how the process works, and learn what to watch out for along the way.
What Are Tax Delinquent Properties?
When an owner doesn't pay their property taxes, the local government may take action. Over time, the unpaid taxes can lead to the property being placed on a tax delinquent properties for sale list in Colorado. This means the property might be sold to recover those unpaid taxes.
To collect the money, counties can either sell a tax lien or sell the property outright through a tax deed sale. These sales give investors a way to either earn interest on the lien or buy the property itself.
Tax Lien Sales vs. Tax Deed Sales
Understanding the difference between a tax lien sale and a tax deed sale is important.
- Tax Lien Sale: You pay the overdue taxes and get a lien on the property. If the owner pays you back with interest, you earn money. If not, you may have the right to foreclose and take ownership.
- Tax Deed Sale: You buy the property itself, usually through an auction. These deals may require more money upfront, but you get full ownership right away.
Each option has risks and benefits. Lien sales are less costly at first but may take longer to pay off. Deed sales give faster results, but you’ll want to research the property carefully.
Where to Find These Properties
County Treasurer Websites
One great place to start is local county treasurer websites across Colorado. These official sites regularly publish lists of tax delinquent properties for sale in their area. You'll often find information on upcoming tax lien or deed sales, including property details, auction dates, and registration steps.
Each county runs its own site, so the layout and info may vary. To find what you need, search online for the treasurer’s office in the county you're interested in.
Staying up to date with county websites ensures you get accurate, timely details straight from the source.
DealMachine
You can also use real estate data software like DealMachine to help with your search. DealMachine brings together property, ownership, and decision-maker information in one place. It can help you:
- Research property ownership
- Find properties that will meet your buy box
- Build custom property lists based on tax delinquency or other filters
- Contact property owners more easily
DealMachine is useful if you want to go beyond public listings and look for leads before they become widely available.
Check out the full demo on how to use DealMachine below.
What to Know Before You Buy
Buying a tax delinquent property is not like buying a regular home. You need to do your homework:
- Inspect the Property: If possible, drive by the location to check its condition.
- Check the Title: Some property liens or legal issues may still be attached.
- Understand the Neighborhood: Is it a growing area? Will the property gain value?
Work with real estate professionals or attorneys if you're unsure about anything. A small fee for expert advice could save you thousands later.
Getting Ready for a Sale
Counties often hold public auctions for tax lien or deed sales. To take part, you may need to:
- Register in advance
- Pay a deposit or bring certified funds
- Know how the bidding works
During the auction, be cautious. It’s easy to get caught up in the excitement and overbid. Set a firm budget and stick to it.
Financing Options
Many investors pay with cash, but that’s not your only choice. You can:
Be sure to include other costs in your budget like repairs, title searches, or legal fees.
Watch Out for Legal Issues
Tax delinquent properties can come with legal problems. Some may have unpaid utility bills or old mortgages that don’t go away after the sale.
Before making a purchase, check for:
- Other liens
- Claims from former owners
- Legal action on the property
It's smart to have an attorney review everything before you sign.
FAQ: Tax Delinquent Properties in Colorado
How do I get a tax delinquent properties for sale list in Colorado?
Start with county treasurer websites or visit local offices. You can also search real estate data software like DealMachine.
Are tax delinquent properties in Colorado a good investment?
Yes they can be if you do your research. Many properties sell below market value, but risks like hidden liens or repair costs can reduce profits.
Can I inspect a property before buying it?
You usually can’t enter the home if it is up for auction, but you can drive by and view the outside. Use this time to assess the condition and neighborhood.
What’s better: tax lien or tax deed sales?
It depends on your goals. Tax lien sales are lower risk and may earn interest, while deed sales offer full ownership but carry more upfront cost and responsibility.
