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District 3: Patty Bartlett (Logan), Bob Sagel (Morgan), Linda Statz (Phillips), Wanda Lowery (Sedgwick)

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Presentation on theme: "District 3: Patty Bartlett (Logan), Bob Sagel (Morgan), Linda Statz (Phillips), Wanda Lowery (Sedgwick)"— Presentation transcript:

1 District 3: Patty Bartlett (Logan), Bob Sagel (Morgan), Linda Statz (Phillips), Wanda Lowery (Sedgwick)

2 Definition Redemption of a tax lien is when: The taxpayer did not pay their property taxes The Treasurer sold a lien on the property at tax lien sale The taxpayer redeems by paying the taxes, interest, fees and penalties to remove the tax lien from the property

3 Who has Right to Redeem § (1) Owner including agent, assignee & attorney Any person having legal or equitable claim therein; (i.e. lessee, optionee, easement holder, lienor - including if retained in satisfaction of debt, assignment & agency, assignee of lienor, installment land contract buyer, townhouse owners, party recording lis pendens) Owner of undivided interest - § (2) &

4 Who Cannot Redeem Limited Partner in limited partnership Bank holding only lien on note & deed of trust against sold property Surface owner has no right to redeem severed minerals under his property Does have right of first refusal to purchase the lien prior to tax lien sale - §

5 Redemption Time Frame Mobile home located on property owned by another individual – Minimum of 1 year to redeem Mobile home located on property owned by same individual – Minimum of 3 years to redeem Real Property – Minimum of 3 years to redeem

6 Redemption Time Frame Redemption must be exercised prior to issuance of Treasurer’s Deed or Certificate of Ownership Property owner under legal disability (as defined in (3) C.R.S.) – § – extended to earlier of 9 years after date of recording tax deed or 2 years after disability removed or ceases

7 Redemption Time Frame Tax lien sold to an individual ceases to be a lien 15 years after date of sale, unless an application for Treasurer’s Deed is pending – C.R.S. Tax lien struck off to County ceases to be a lien 30 years after date of sale

8 Redemption Time Frame When a lien has expired, the Treasurer shall immediately issue a Certificate of Cancellation and enter “Cancelled by provision of section , C.R.S.” in tax sale records The Certificate of Cancellation is to be presented to the Clerk and Recorder who shall enter same in the record of land & endorse date of entry & file same

9 Redemption Time Frame When a lien becomes unenforceable pursuant to C.R.S. (bonds or warrants issued for public improvements; i.e. street & alley improvements, special districts for sewers) Treasurer shall immediately issue a Certificate of Cancellation & enter “Cancelled by provision of sections & C.R.S.” & file with Clerk and Recorder

10 Redemption Dates Anytime before execution of deed - § (3) Execution means signing of deed - §

11 Redemption Payment Required to pay entire lien amount; i.e., Amount sold at tax lien sale (not including overbid), Amount of endorsement for each succeeding year or years’ taxes, Interest at the rate the lien was sold for from date of each payment (interest is calculated the first of each month) $7 redemption fee

12 Redemption Payment Statutes do not require certified funds Can make it your office policy Record redemption information on original Tax Lien Certificate & tax sale record Suggest that Treasurer keep all original Certificates in their safe keeping for purpose of endorsements & redemptions

13 Redemption Payment If applicable, include Treasurer’s Fee of $35 for properties with an assessed value of less than $500 and $75 for properties with assessed value of $500 or more (check value at time of sale & request for Deed), and costs of Treasurer’s Deed process including title work, copies, postage

14 Redemption Payment If a Lien Certificate is lost, it requires proof given to and a Certificate issued by Board of County Commissioners & recorded by Clerk in the Recorded Proceedings ( (3) C.R.S.)

15 Redemption Payment Redemptions involving Mobile Homes Notify Department of Revenue so lien may be removed in the State’s record Submit $5.00 fee & copy of Redemption along with their form DR2695 Redemption does not change ownership of parcel being redeemed

16 Projected Redemption A Projected Redemption is prepared for the party desiring to redeem, stating the amount required in any given month

17 Certificate of Redemption Certificate of Redemption is issued to show full amount of Redemption If tax lien is recorded with the Clerk and Recorder, record Certificate of Redemption Treasurer issues check to the tax lien investor Report to the IRS interest totaling $10 or more earned by each investor during the year on form 1099-INT each January

18 Assignment of County & Individually Held Tax Lien Certificates Certificates of Tax Liens are assignable documents & may be assigned on original Tax Lien Certificate or by separate Assignment Assignments should be noted in tax lien records and in computer system

19 Assignment of County & Individually Held Tax Lien Certificates When assigned, assignee assumes position of the tax lien buyer Redemption funds are payable to current holder of tax lien whether original buyer or assignee

20 Assignment of County Held Tax Lien Certificates When assigning a County Held certificate Have individual request assignment in writing Treasurer may assign County held certificates less than $10,000 in taxes ( & C.R.S.) If greater than $10,000 it must be approved by administrator and published

21 Assignment of County Held Tax Lien Certificates Board of County Commissioners may determine amount necessary for assignment of County held tax lien in accordance with § (4)

22 Assignment of County Held Tax Lien Certificates May assign tax lien for nonpayment of irrigation or drainage district tax or assessment by agreement with Board of Directors of district involved C.R.S.

23 Assignment of County Held Tax Lien Certificates If assigned when lien is 15 years old or will become 15 years old within 1 year of assignment, assignee shall be entitled to a Treasurer’s Deed if applies for a Deed within 1 year from date of assignment

24 Assignment of Individually Held Tax Lien Certificates No assignment fee is collected when assignment is from an individual investor


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