GENERAL INFORMATION 

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Tax Lien Sale

Our Tax Lien Sale will be conducted on the internet again this year.  For those of you unfamiliar with internet auctions the Treasurer’s Office will be conducting two seminars prior to the Tax Lien Sale.  Both will be held on October 21st; the first in the lower level training room of the Centennial Building in Cripple Creek (112 North A Street) at 2:30pm, the second seminar will be held at the Woodland Park Council Chambers (220 W. South Ave.) at 6:30pm.  The internet auction service will also have a practice website for you.  We strongly recommend that you attend one of the seminars and/or visit the practice website at  www.sri-onlineauctions.com .  The Treasurer’s Office will have a computer available for public use in the Treasurer’s Office in Cripple Creek.

How it Works:

Every parcel will be offered in compliance with Chapter 39, Article 11, of the Colorado Revised Statutes.  The tax lien sale will be held as an Internet auction administered by SRI Incorporated.  The liens to be auctioned will be published in the Pike’s Peak Courier View newspaper on October 2nd, 9th & 16th; they will be listed on the Treasurer’s website (www.co.teller.co.us) the first week in October. The listing will be on the SRI website beginning October 29 at 8:00am.  The bidding rules will be posted by October 3rd on the Teller county website and the SRI website (www.sri-onlineauctions.com).

www.co.teller.co.us      or      www.sri-onlineauctions.com

Bidding will begin on October 31st at 8:00am MST.  The auction will close in batches of 200 parcels on November 4, 2013 starting at 10:00am, 12:00pm, 2:00pm and the remainder closing at 4:00pm MST.  Invoices are sent for each batch, you may receive multiple invoices.

Technical questions regarding the operation of the auction website should be addressed to SRI through their customer contact.   Questions regarding the tax liens and the sale should be addressed to the Teller County Treasurer’s Office 719-689-2985.

Proxy Bidding - The process of Proxy Bidding includes the system automatically increasing each competitive bid amount by one dollar ($1.00) increments, until you or the competitive bidder has reached the maximum bid placed for that parcel.

Payments:

Payments for the Internet Auction transaction will be processed through a third party payment service that includes an e-check option (flat fee of $4.00) or credit card payment option (2 ½% convenience fee plus a $2.00 charge) on the total transaction.  AT THE CLOSE OF EACH BATCH, YOU WILL RECEIVE, BY EMAIL, A SUMMARY STATEMENT INDICATING THE AMOUNT OF YOUR SUCCESSFUL PURCHACES.  AT THE CONCLUSION OF THE SALE, AND AFTER ALL BATCHES HAVE CLOSED, YOU WILL RECEIVE, AGAIN BY EMAIL A FINAL PAYMENT INVOICE WHICH WILL INCLUDE ALL OF YOUR SUCCESSFUL PURCHACES FROM EACH BATCH.  THIS IS THE ONLY INVOICE YOU WILL RECEIVE!  PLEASE INITIATE YOUR PAYMENT, FROM THIS FINAL INVOICE, WITHIN 24 HOURS OF THE CLOSING OF THE SALE.

 REGISTRATION:

All potential bidders must register with the Auction Provider SRI and be approved by Teller County, including all past Teller County bidders.  Registration will be open from October 14, 2013 through November 1st.  It is very important that the Treasurer’s Office has current information through your registration on the SRI website!

Registration on the internet will include the completion of an IRS required form W-9, an affidavit stating that you are legally eligible to participate as well as a simple registration form to include name, address phone number, email address, etc.  Bidders are responsible for verifying that the information supplied is correct.  

ALL Certificates of Purchase, redemption checks and Treasurer’s Deeds will be issued in the name under which you have registered on the website.

GENERAL INFORMATION

Teller County Elected Officials, Appointed Officials and Employees, including immediate family and agents are prohibited by state statute from participating in the tax lien auction (C.R.S. 39-11-151).  All bidders will be required to electronically sign an Affidavit stating they are qualified to legally participate in the auction.

Bidding will begin with the amount of taxes, interest, fees and auction cost due per C.R.S. 39-11-106.  Any bid above the minimum amount is considered a PREMIUM BID.  You do not receive any interest on the premium bid, nor is it refunded if the property is redeemed.

YOU ARE NOT BUYING THE LAND!  This is merely a lien against the property, but it is first over all other liens.  The owner of the property has the legal right to redeem the tax lien up to the day a Treasurer’s Deed is to be issued.  It must be understood that the sale and purchase of a tax lien does not, as it might under simple sales and purchase agreements, convey the right of possession, use, improvement or access to said property.

It is your responsibility to research the quality and classification (zoning) of the property on which you intend to bid.  Although the Treasurer’s Office makes a significant effort to be aware of potential problem liens and therefore withholds them from sale, ultimately the sale is a “BUYER BEWARE SALE”.  Therefore, it is the recommendation of the Treasurer that you consult with private legal counsel prior to participation in the tax lien sale.

Upon completion of the sale, you will receive from the Teller County Treasurer an itemized list of each parcel purchased and a copy of the Tax Lien Sale Certificate of Purchase.  The Certificate will be issued in statutory form showing the legal description, purchase amount, rate of interest, buyer’s name and the date of sale.  Certificates will only be issued in the name under which the buyer registered.  The original Certificate of Purchase will be held in the Treasurer’s vault for safekeeping.  Leaving your certificates with the Treasurer has the advantage of receiving payment sooner when redemption is made (the original Certificate must be surrendered to receive your payment) and allows for endorsing without having to find your certificate(s), and mailing or bringing them in to the office.

It is your responsibility to advise the Treasurer’s Office of any address change.

DEEDING PROCESS:

In the event the lien remains unredeemed, the certificate holder has the right of paying subsequent years’ delinquent taxes (endorsing) after August 1 of that year.  Three years from the date of the original sale, if the lien remains unredeemed, the certificate holder may apply for a Treasurer’s Deed to the property.  Certificates sold in 2013 are eligible for application of a Treasurer’s Deed in 2016.  The deed process takes six to eight months to complete.  Extension of that time frame may occur if there are complex issues related to the property.  When application is made, a deposit is required to pay all related deed expenses pursuant to law.  The deed deposit is currently $350.00.  Prior to deed application, all subsequent taxes, special assessment liens and current taxes must be paid and endorsed onto the certificate.

All deeds and redemption checks will be written in the name under which you are registered.

REDEMPTION OF LIEN:

If the tax lien is redeemed, you will receive interest at a rate of nine percentage (9%) points above the national bank discount rate as of September 1st of the year of the sale.  Subsequent taxes paid and endorsed to a certificate earn the same interest as that of the original tax lien sale purchase.  Interest is paid on the total taxes, interest and fees when redeemed by the property owner.  Interest is not paid on premium bids or deed deposits.  Approximately 95% of the tax liens in Teller County are redeemed; most of them within the first year.

The interest rate for the 2013 Tax Lien Sale will be 10%

WRONGFULLY SOLD LIEN:

If a lien is wrongfully sold and the County must pay the certificate holder the accrued interest, the rate will be 8% per annum.

ENDORSEMENT OF TAX LIENS:

If the taxes for the following year become delinquent, you will be given the opportunity to pay (endorse) the taxes and add them onto your certificate.  This enables you to pay the delinquent taxes and add them to your existing tax lien certificate of purchase.  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 with your endorsement packet in July.