Bob Hullinghorst

BOULDER COUNTY TREASURER

Q: When is the Tax Lien Sale Auction list published?
 A. The delinquent tax lien sale list is published four (4) weeks prior to the tax lien sale for three consecutive weeks. We print the list once and distribute it each week thereafter, so the list will become less accurate as taxes are paid between the publication date and the date of the auction. The delinquent list is published three times in the Longmont Times Call (The designated paper in Boulder County for legal notices). On the last week prior to the auction, the list is published in the Boulder Daily Camera, The Nederland Mountain Ear, The Lafayette News, The Louisville Times, The Lyons Recorder, and The Colorado Daily

Q: Are copies of the list available?
A. Copies of the list will be available in The Treasurer’s Office at 1325 Pearl Street beginning November. (exact date unknown)  We will be happy to mail you a copy for $1.00 to cover the mailing cost. You may send your dollar with your name and address any time during the year and be placed on our tax lien sale mailing list. You may also request to be put on our email list. Just send an email to taxlien@bctaxhelp.com and put “please put me on your tax lien mailing list” or words to that effect in the subject line. Also included your name in the text of the email.

Q: Where is the sale held?
A. The sale is held at the Boulder County Court House at 13th and Pearl Street, in the City of Boulder, on the third floor in the County Commissioners hearing room.

Q: Is parking available?
A. Registered bidders park for free. Park in any of the four downtown city parking lots:  1100 Walnut, 1400 Walnut, 11th and Spruce, or 1500 Pearl. When you register, you will receive an eight hour parking pass.

Q: How do I find out where properties are located?
A. The Boulder County Assessor’s Office has parcel maps available for public use on the second floor of the Boulder County Court House at 13th and Pearl St. You can also look up parcel information using the record number on the Assessor’s Website:
http://map.co.boulder.co.us:8080/basemap/disclaimer.htm
 (The account number is listed in bold on the first line of each listing, begins with an ‘R’ followed by seven digits). Additional information may also be researched at the Clerk & Recorder’s Office - Recording Division located at 1750 33rd St., Boulder, CO  80301 

Q: How do I update my list of properties that will be sold at auction?
A. As property owners pay their delinquent taxes prior to the tax lien sale, their accounts are marked as ‘Paid’ on the Treasurer’s copy of the publication. This updated list is available at the Treasurer’s Office, or online. 

Q: Do I get ownership to the property?
A. NO. You as a tax lien investor have no right, title or interest to the property. You have only purchased a lien against the property based on delinquent taxes.

Q: Do I have any right to go on or inspect the properties I am interested in?
A. No. You are only purchasing a lien. The owner of the property retains all rights of ownership, title and privacy.

Q: Can I just come and observe the Tax Sale?
A. Yes, but please keep in mind that seating is limited and if the room is full, it would be appreciated if you would give up a seat to a registered bidder and observe from the back of the room or outer corridor (speakers are set up outside the hearing room).

Q: How early can I register for the sale?
A. You may pre-register for the sale and have your named entered as a bidder one week prior to the sale. Please keep in mind you will need to pick up your auction number card and the updated day-of-sale auction list the morning of the sale.

Q: What time does registration begin?
A. Registration opens at 7:45 AM December 5th.

Q: What types of funds will be accepted?
A. All deposits must be made in CASH, CERTIFIED CHECK, BANK CASHIER’S CHECK OR WIRED FUNDS. You must wire money the day before the auction so it is received before the auction begins. (Please contact our accounting dept for wiring instructions) Final determination regarding the acceptability of any deposit other than cash will be at the discretion of the Treasurer or his Deputies.

Q: How much money do I have to put on deposit?
A. You must have the funds on deposit to cover your bid. ie: You bid on a $1,000.00 tax lien, you make a $35.00 Premium Bid, you must have $1,035.00 on deposit to succeed as the purchaser of that lien.

Q: What information will I need to have to register?
A. The registration form will include: Name, Address (where you want checks, correspondence mailed), Social Security No. or Tax ID # for reporting to IRS, YOU WILL HAVE TO COMPLETE AND SIGN AN IRS W-9 FORM IN ORDER TO REGISTER.  The names on the Tax Lien Sale Certificates of Purchase will appear exactly as on your registration form. Please verify all spellings and wording on your registration form as checks and deeds will be issued accordingly.

Q: How long will the sale last?
A. The sale will begin as close to 8:30 AM as possible as soon as all bidders are registered and recorded. Depending on the number of items, the auction may last until 5 PM. At that time Treasurer’s staff will determine if the sale will be continued or adjourned to the next business day. In recent years, the sale has not gone past 3:00 PM.

Q: What is the interest rate?
A. The interest rate for the 2008 is 11% per annum.  

Q: How is interest calculated?
A. Interest is calculated monthly on the first day of the month., If your lien is paid by the owner on the first day or last day of a month, you earn interest for the entire month. Since payments will not be accepted until December 6th after the tax lien sale, you will earn at least one month interest for December.

Q: Will there be an Auctioneer?
A. Yes, Boulder County Treasurer has engaged a professional auctioneer for the sale.

Q: Does auction sale process list follow the list published in the newspaper?
A. Yes, the list is published in alphabetical order by owner name. The auction will proceed in alphabetical order. Any property taxes that have been paid before the auction date will not be available. The sale will be conducted from the day-of-sale auction list.

Q: How is the bidding done? (Rotation vs. Open)
A. Bidding is on an open and competitive basis. Every registered bidder with funds on deposit may bid on any tax lien item. Each item will be identified by a staff member. The auctioneer will then start the bidding process for the premium bid amount only. The final amount of the successful premium bid and the successful bidder number will be repeated by the auctioneer. Keep in mind, the auctioneer calls only the premium amount. You must also pay the outstanding tax amount listed on the day of auction sale list. All premiums are in whole dollar amounts and increases are at the discretion of the auctioneer.

Q: What is a Premium?
A. Premium bids are the amounts over and above the taxes, interest and fees listed on the day of sale list.

Q: Is interest calculated on my premium bid?
A. No. You do not earn any interest on a premium bid. Your premium bid is the amount over and above the delinquent taxes you are willing to pay to buy that tax lien.

Q: Do I get my premium bid back?
A. No, as stated previously, you do not get your premium back. This is the amount you are paying to purchase the tax lien.

Q: What was the % of premium bids from prior sales?
A. For the last five years premium bids have ranged from 0-12%. Last year’s average was 8.1%. Historically in Boulder County, the vast majority of tax liens have sold for a premium bid.

Q: How are premium bid monies used by county government?
A. Money collected as premium bids goes directly to the County General Fund and is not earmarked for any specific department or program. No premium bid funds are retained by the Treasurer’s Office.

Q: Can I lose money investing in tax lien sales?
A. Yes. You could lose money if the interest earned does not equal or exceed the premium bid amount you paid. Should the property go all the way through the deed process and you get title to the land, the market value of that parcel may not be worth what you have invested in it. This is a buyer beware process, and you need to make informed bids.

Q: Why are several items grouped together on the day of sale auction list?
A. By statute, the Treasurer may combine properties that are under the same ownership and sell those items as a group. If you purchase a group of items, you will still receive individual tax lien certificates of purchase for each item. These items do not have to be redeemed as a group by the property owner. This practice is used solely to expedite the sale.

Q: In terms of other encumbrances, what position are the tax liens?
A. Tax liens are a first, prior and perpetual lien against the property, meaning taxes are in a first position over mortgages, mechanic liens, and judgments. The only lien that would be ahead of a tax lien you purchase this year is a prior year’s tax lien.

Q: What if I purchase a lien for more money than I have on deposit? How will I be notified I am out of funds during the sale?
A. If you win a lien on an item, and you do not have sufficient funds to cover it, your buyer number will be printed on a board in the front of the room. You must go directly to the conference room, located across the hall from the hearing room, and put additional money in your account. The item that you bid on is on hold and can not be credited to your purchases until this additional deposit is made. If your number is on the board, you may not bid on additional items until you have replenished your funds. If you do not deposit the required funds, the item will auctioned at the end of the sale.

Q: Can I make additional deposits during the sale?
A. Yes, you can make additional deposits anytime throughout the sale.

Q: When can I get an up-date of my purchases and account balance?
A. A buyer balance sheet is available anytime in the conference room. This sheet will tell you what you have on deposit, what you have purchased and your account balance.

Q: How fast will the sale go?
A. The sale will proceed at a deliberate and steady pace. If at any time you feel you are getting lost or can not keep up with the pace of the sale, please contact the Treasurer or a staff member and we will try to make adjustments.

Q: What if I am the successful bidder on a lien in error?
A. The tax lien sale is final. It is your responsibility to know what lien is being auctioned and how much you have bid. Once a lien is sold to you, unless you do not have funds on deposit to cover the purchase, we can not reverse the sale.

Q: When can I get my refund of my deposit?
A. NO REFUNDS WILL BE ISSUED ON THE DAY OF THE SALE. You may pick up your refund in the Treasurers Office (1st floor, Boulder County Courthouse, 13th and Pearl St.) AFTER 12 noon on the following Tuesday, December 9^th, 2008.  If you choose not to pick up your refunds, checks will be mailed by request on Wednesday, December 10^th, 2008.  If you wired your deposit, your refund will be wired on Tuesday, December 9^th, 2008.

Q: What is a tax lien sale certificate of purchase?
A. A tax lien sale certificate of purchase will be issued for each lien to the successful bidder. This statutory form will show the legal description, purchase amount, buyers name (as entered from the registration card), interest rate, date of sale, owner of record and mailing address as of advertising. If the taxes are not paid in following years, you may elect to extend your lien by paying the taxes on those years. This is called an endorsement. There is space on the certificate to record endorsements.

Q: Will I get the original tax lien sale certificates of purchase?
A. No, Boulder County Treasurer retains all Tax Lien Sale Certificates of Purchase for safekeeping. Copies of each certificate will be mailed to you with your refund check, if applicable, within a week following the sale.

Q: Will a print out be available of what I purchased?
A. Yes, if you choose to come in and pick up your refund check you will be asked to sign for the refund and on that sheet is a complete list of all purchases you made at the sale. We can also send a copy of this list upon your request.

Q: May I sell the tax lien sale certificates of purchase to another party?
A. Yes, tax lien certificates are assignable to another party. On the back side of each original certificate of purchase there is a place for the assignment of your interest. Because the Treasurers office holds your certificates you will need to contact the Treasurers office to assign your certificate (s). All certificates must be notarized and have everyone whose name appears on the certificates signature. Each certificate that has been assigned must be recorded with the Boulder County Clerk and Recorder (There is a charge for recording each certificate). Also, the Treasurers office will need the party to whom you are assigning your certificate to complete a W-9 reporting form.

Q: What is an endorsement of subsequent taxes?
A. Each year following the purchase of your original certificate, if the property owner has not paid their current year taxes in the timely manner required by statute you have the option of adding that next years delinquent taxes to your certificate.

Q: Do I have to pay subsequent taxes each year?
A. No, you as the tax sale purchaser may determine whether or not you want to pay any additional taxes by endorsement.

Q: Will I be notified of subsequent endorsement amounts I need to pay?
A. Yes, the Treasurer’s office will send you a notice of any certificates that may be endorsed and the amounts for each of those certificates.

Q: Do I have to pay a premium on endorsement amounts?
A. No, once you have purchased the original tax lien, the endorsement amount is the next year’s delinquent tax plus interest due at time of delinquency and endorsement fee (currently $5.00).

Q: When can I pay subsequent taxes?
A. Subsequent delinquent taxes may be endorsed anytime after July 1st of any given year. 

Q: What interest rate will I earn on endorsement amounts?
A. The interest rate is set at the original sale and remains the same for the life of the lien.

Q: Do property owners contact me to cure tax lien?
A. No, all tax lien sale redemptions must be made through the Treasurer’s office.

Q: How soon can tax liens be paid off by the property owners?
A. The Treasurer’s office will begin accepting redemptions from property owners for the 2008 sale on Thursday, December 11, 2008.

Q: What % of the tax liens get paid off within the first year?
A. Due to the high number of factors that could be figured into a statistic like this it is difficult to give an average figure.

Q: How many properties go all the way to a Treasurer’s Deed?
A. Less then one half of one percent go to tax deed.

Q: When can I apply for a Treasurer’s Deed?
A. Three years from the date of the original tax lien sale you can request the Treasurer’s office to start the deed procedures.

Q: What kind of title does a Treasurers Deed give?
A. A Treasurer’s Deed transfers ownership free and clear of all liens. This title is not a warrantable title for up to nine years from the date of deed.

Q: What happens to a tax lien if the property owner files bankruptcy?
A. When a bankruptcy is filed and it affects property in Boulder County, the Treasurers office receives notice and files a proof of claim with the Bankruptcy Court. Our proof of claim includes the tax lien sale interest rate. To date we have not been denied our full claim on tax sale liens. Your tax lien continues to earn interest, but, the bankruptcy does prevent the issuing of a Treasurer’s Deed until the bankruptcy has been dismissed. In the unlikely event, that the bankruptcy court does not comply with our request, the Boulder County Treasurer will take all available action to cure your lien.

Q: Do you pay interest in annual payments?
A. No, interest is only paid when the tax lien is redeemed.

Q: What will be reported to the IRS?
A. In 1994 the law was changed to require County Treasurers to report interest earned by investors on tax lien sales. Once a year our office reports on 1099 interest earning statements to the IRS. The amount reported is the total interest paid from each redeemed certificate during that year. A 1099 statement will be sent to each buyer in January. The interest is reported from redemption date, not check date. (ie: a certificate is redeemed on December 29, 2008 and your check is issued on January 2, 2009, the interest will be reported with your 2008 statement.)

A. Sorry, we’re getting into deep water here. The Treasurer’s Office is prohibited by law from giving legal or tax advice. You will need to contact your accountant or a member of the Internal Revenue Service.

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