What Happens if I Fall Behind on my Property Taxes in Colorado?
The tax office in Colorado typically will sell the property that is in tax foreclosure within 4 years of when the tax liens are first placed.
If you have been looking online, trying to figure out how to avoid property tax foreclosure in Colorado, then you should listen up and take notes because we are going to outline the entire process here for your convenience.
If you haven’t paid your taxes by July 1st in Colorado, then you’ll be subject to a tax fine.
They don’t put it up for auction until 5 years has passed, and if at that time you are still not current on your payments then the county tax collector will have the power to sell that property in order to collect the past due balance that is owed by the homeowner.
If your home has any liens or code violations, then you only have just 3 years to become current on your balance.
Publicly held auctions at the local court house are the most widely used method for selling tax delinquent homes fast in Colorado. A tax collector is required to make an attempt to personally contact the owner of the property regarding the sale if it is registered as your primary residence.
If you were wondering what is a foreclosure or what is a notice of default in Colorado, then these aforementioned articles should help you understand those processes, and you may even find that you are able to stop the foreclosure process altogether with the right people and resources.
Steps To Avoid Property Tax Foreclosure in Colorado
- Get on a payment plan – As long as you can afford to make the monthly installment payments, then you can pay down your balance over time and avoid foreclosure. This is usually the smartest option, as it lessens the financial burden and fiscal responsibility of the homeowner.
- Send In Your Documents – Unfortunately, you cannot get your home back after it has been sold at public auction in Colorado. Ensure that you are filling out all of the agency’s forms correctly, and are sending in your paystubs and other proof of income, as this will strengthen your case.
- Pay the Tax Debt with Financing – If all else fails, see if you can get a lower interest loan from a local lending institution that will allow you to pay off your tax debt and then pay back the loan over time.
- File for bankruptcy – filing for a Chapter 13 bankruptcy entitles you to a stay, or halt of actions by either a lending institution or a local county (or other property tax collector).
Property Tax Sales In Colorado
If your home does get auctioned, the county tax officer must give you written notice of the sale, and contact you no less than 45 – 120 days from the sale date. The sale of the property must also be listed in local newspapers by law, to allow for maximum protection for the consumer who may end up purchasing the property, should it actually go to auction.
Property Tax Postponement
In Colorado, there are special assistance programs in place that allow citizens with an annual household income of less than $35,000 and 40% equity to apply for a deferred payment on their primary residence.
Most Colorado homeowners aren’t aware of this highly beneficial program, and many fail to take advantage of it even though it would drastically help their current situation.
Selling A House That Is Late On Taxes
You can sell a home on the local market that is late on taxes, but be aware there may be a tax lien on the property that has to get paid prior to the closing of the sale. If you’d like a no-obligation, all cash, as is offer on a property then give us a call today at (719) 286-0053 to avoid property tax foreclosure in Colorado.
