State Foreclosure Law Library

colorado

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Colorado — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Colorado is a tax-lien-certificate state. County treasurers auction a certificate of purchase (CP) on delinquent parcels each November; the CP holder earns statutory interest (currently 9 percentage points over the September 1 federal discount rate) and, after a 3-year redemption period, may apply for a treasurer’s deed. HB24-1056 (effective July 1, 2024) rebuilt the deed end of that process: a CP holder no longer simply gets a deed for the tax debt. Instead the treasurer must run a public auction of a certificate of option for treasurer’s deed under a brand-new Article 11.5 of Title 39, and any overbid (surplus) flows to junior lienors in recording priority and then to the former owner — Colorado’s direct legislative response to tyler-v-hennepin-county (2023). Mortgage foreclosure is non-judicial through the county public trustee (with a court “Rule 120” order), with no post-sale redemption for the homeowner (junior lienors only) and a fair-value deficiency rule.

0. Identity & Classification

  • Recording unit: county (count: 64).
  • Tax sale type: tax lien certificate (certificate of purchase); a treasurer’s deed issues only later, and post-HB24-1056 only after a public auction of a certificate of option for treasurer’s deed (C.R.S. § 39-11.5-115). [Source: leg.colorado.gov HB24-1056 enrolled text]
  • Tax foreclosure process: administrative — the county treasurer conducts the lien sale (Title 39, Art. 11), redemption (Art. 12), and the new deed public-auction process (Art. 11.5); no court action is required to issue the deed, though defects are challenged in district court. [Source: HB24-1056; FindLaw § 39-11-115]
  • Mortgage foreclosure process: non-judicial via the county public trustee, but a court Rule 120 order authorizing sale is required (C.R.S. Title 38, Art. 38). [Source: alllaw.com/Nolo CO foreclosure]
  • Selling authority: county treasurer (tax lien sale, redemption, treasurer’s-deed public auction); public trustee (deed-of-trust foreclosure sale).
  • Statutory home: Title 39, Art. 11 (Sale of Tax Liens), Art. 11.5 (Treasurer’s Deeds — public auction, added by HB24-1056), Art. 12 (Redemption) — https://codes.findlaw.com/co/title-39-taxation/co-rev-st-sect-39-11-115/ ; Title 38, Art. 38 (Foreclosure Sales) — https://www.alllaw.com/articles/nolo/foreclosure/laws-in-colorado.html
  • Tyler v. Hennepin compliance: reformed_post_Tyler — before HB24-1056, a treasurer’s deed transferred the whole parcel to the CP holder for the tax debt and any value beyond the debt was lost to the former owner, the practice Tyler held an unconstitutional taking. HB24-1056 (eff. July 1, 2024) added Article 11.5 so the deed is sold at public auction and any overbid above the minimum bid is paid down a priority waterfall to junior lienors and then to the property owner (C.R.S. § 39-11.5-109(1)). [Source: HB24-1056 enrolled text; Colorado Lawyer “Keeping the Surplus”; Rio Grande County FAQ]

1. Tax Sale Mechanics

  • What is sold: lien certificate (certificate of purchase, “CP”).
  • Bidding method: premium bid (“bonus bid”). The lien is struck to the bidder paying the largest amount in excess of the taxes, interest, advertising, and fees due (C.R.S. § 39-11-115). The premium does not draw interest, is not returned on redemption, and is credited to the county general fund. [Source: FindLaw § 39-11-115; El Paso County Treasurer]
  • Interest / penalty: redemption interest is set annually by the state Bank Commissioner at 9 percentage points above the September 1 federal discount rate, rounded, effective October 1 (C.R.S. § 39-12-103(3)). For 2025 purchases this equaled 14% per annum. [Source: FindLaw/Justia § 39-12-103; El Paso County Treasurer]
  • Minimum bid composition (lien sale): delinquent taxes + delinquent interest
    • advertising + statutory fees (C.R.S. § 39-11-115). [Source: FindLaw § 39-11-115]
  • Sale frequency: annual.
  • Typical month: November. [Source: Garfield County, Eagle County treasurer pages]
  • Venue: both, predominantly online.
  • Platform vendors: RealAuction is used by many counties (e.g., El Paso, Garfield, Eagle). [Source: El Paso County Treasurer; Garfield County]
  • Registration / deposit: bidder registration via the online platform before the sale; deposit terms set per county. (exact deposit % per county — needs_verification.)
  • Subsequent taxes (“subs”): the CP holder is notified (counties report July/August notices) of later delinquent taxes and may pay and endorse them onto the existing certificate; subs earn interest at the same rate as the original CP. [Source: Garfield County treasurer “tax lien sale”]

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: the owner may pay the delinquent taxes any time before the lien is sold, avoiding the sale. [Source: Title 39 Art. 10/11 framework]
  • Post-sale period: redemption may be made at any time before the execution of a treasurer’s deed (C.R.S. § 39-12-103(3)); functionally a 3-year window because the CP holder cannot even apply for a deed/public auction until 3 years after the sale. [Source: Justia/FindLaw § 39-12-103; El Paso County Treasurer (3 years); Routt County]
  • Who may redeem: the owner or the owner’s agent, assignee, or attorney; any person having a legal or equitable claim in the property; and a holder of a tax sale certificate (C.R.S. § 39-12-103). [Source: Justia § 39-12-103 (2016/2022 text)]
  • Amount formula: the taxes, delinquent interest, and costs for which the lien was sold, plus redemption interest from the date of sale at the § 39-12-103(3) rate (9% over discount rate). The premium paid at the lien sale is not repaid (it went to the county general fund). [Source: § 39-12-103; § 39-11-115]
  • Premium to certificate holder: none beyond statutory redemption interest; the CP holder’s upside is the interest rate, not the auction premium.
  • Procedure: redeem through the county treasurer, who holds the funds for the CP holder and issues a certificate of redemption. [Source: § 39-12-103]
  • Extinguishment: redemption is cut off by execution/delivery of the treasurer’s deed following the Article 11.5 public-auction process. [Source: § 39-12-103; HB24-1056 § 39-11.5-115/-116]
  • Special tolling: persons under disability (minors / incompetents) get an extended redemption window under C.R.S. § 39-12-104; federal redemption rights are expressly preserved by HB24-1056 (C.R.S. § 39-11.5-114). [Source: Justia § 39-12-104; HB24-1056 § 39-11.5-114]

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

(A) Tax treasurer’s-deed surplus — new Article 11.5 (HB24-1056, eff. 7/1/2024).

  • Belongs to: priority_waterfall — junior lienors first, then the former property owner.
  • Mechanism: after the 3-year redemption period a “lawful holder” applies for a public auction of a certificate of option for treasurer’s deed (C.R.S. § 39-11.5-102). The treasurer sets a minimum bid = the amount owed the lawful holder plus the treasurer’s Article 11.5 fees and costs, and may only accept bids greater than that sum (C.R.S. § 39-11.5-108(3)(a)). The amount the winning bid exceeds the minimum is the “overbid.” [Source: HB24-1056 §§ 39-11.5-101, -102, -108]
  • Claim waterfall (C.R.S. § 39-11.5-109(1)):
    1. junior lienors in order of recording priority (as of the recording date of the application) who filed a notice of intent to redeem, up to each lien’s unpaid amount + fees/costs;
    2. any remaining overbid is paid to the property owner. A lienholder recorded after the application, or who failed to timely file a notice of intent to redeem, has no claim to the overbid. [Source: HB24-1056 § 39-11.5-109]
  • Filing venue: the county treasurer’s office (claims and notices of intent to redeem). [Source: HB24-1056 §§ 39-11.5-109, -111, -113]
  • Claim deadline: the treasurer mails the owner an overbid notice within 30 days of the auction and holds unclaimed overbid in escrow for 6 months from the auction date; thereafter it is unclaimed property transferred to the State Treasurer (Administrator) under the Revised Uniform Unclaimed Property Act (Title 38, Art. 13) (C.R.S. § 39-11.5-109(2)–(3)). [Source: HB24-1056 § 39-11.5-109]
  • Escheat: funds unclaimed at 6 months go to the Colorado State Treasurer’s unclaimed-property program (not a hard escheat — reclaimable under the Unclaimed Property Act). [Source: HB24-1056 § 39-11.5-109(3)(b); Title 38 Art. 13]
  • Documentation required: proof of ownership / interest; lienors must file a notice of intent to redeem with supporting lien documentation (§§ 39-11.5-111, -113). [Source: HB24-1056]
  • Third-party recovery (tax-surplus finders):
    • fee_cap_pct: none allowed during the treasurer’s custody — an agreement to pay compensation to recover the owner’s overbid from the treasurer is NOT enforceable (C.R.S. § 39-11.5-109(2)(c)).
    • licensing_required: n/a — recovery agreements are simply void/unenforceable while the treasurer holds the funds.
    • assignment_of_claim_allowed: the statute targets compensation agreements; it does not on its face bar assignment, but a finder cannot enforce a fee. (assignability of the bare claim — needs_verification.)
    • cooling_off / disclosure: n/a in the treasurer-custody window (agreements void).
    • prohibited_practices: inducing or attempting to induce another person to enter such a recovery agreement is a Class 2 misdemeanor (§ 39-11.5-109(2)(c)).
    • citation: C.R.S. § 39-11.5-109(2)(c). [Source: HB24-1056 enrolled text]
  • Notice to former owner required? Yes — website posting + mailed notice to the owner’s best/known address within 30 days, with reasonable efforts to locate a current address if the overbid is ≥ $25 (§ 39-11.5-109(2)). [Source: HB24-1056]

(B) Mortgage / deed-of-trust foreclosure overbid — C.R.S. § 38-38-111.

  • Distribution: after a public-trustee sale, overbid is applied first to any deficiency owed the foreclosing lender, then to junior lienors who filed a notice of intent to redeem (to their lien amount), then the remainder to the former owner/grantor. [Source: Arapahoe County Public Trustee overbid page]
  • Claim deadline: the public trustee holds unclaimed overbid in escrow for 6 months from the sale, then transfers it to the State Treasurer under the Revised Uniform Unclaimed Property Act. [Source: § 38-38-111; Arapahoe County]
  • Third-party recovery (foreclosure-overbid finders) — § 38-38-111:
    • An agreement to pay compensation to recover the owner’s overbid from the public trustee is not enforceable, and inducing such an agreement is a misdemeanor (up to 6 months jail and/or up to $10,000 fine).
    • A finder’s-fee agreement is void during the public trustee’s custody of the funds and during the first 2 years of the State Treasurer’s custody.
    • After those windows, finder’s fees are capped at 20% (roughly 2½–3 years after sale) and 30% for amounts held by the State Treasurer 3 years or more; recovery agreements must be written, signed, and describe the property, sale date, and services. [Source: § 38-38-111 (HB16-1090); Arapahoe County Public Trustee]
  • Notice to former owner required? Yes — the public trustee notifies the borrower that funds unclaimed within 6 months go to the State Treasurer. [Source: § 38-38-111; Arapahoe County]

4. Mortgage Foreclosure

  • Process: non-judicial through the county public trustee, with a required court Rule 120 order authorizing the sale (C.R.C.P. 120; Title 38, Art. 38). [Source: alllaw.com/Nolo]
  • Timeline: lender records a Notice of Election and Demand with the public trustee → trustee sets a sale and publishes; a Rule 120 “reasonable probability of default” hearing is held before sale. (precise statutory day counts for notice of sale — needs_verification.) [Source: Nolo CO foreclosure]
  • Reinstatement / cure right: yes — the borrower (and certain junior lienors) may file a notice of intent to cure ≥ 15 calendar days before the sale and pay the cure amount by noon the day before sale (C.R.S. § 38-38-104). [Source: Nolo CO foreclosure]
  • Redemption after sale: none for the homeowner. Only junior lienors who filed a notice of intent to redeem may redeem after the sale (C.R.S. § 38-38-302), generally within statutory day-windows after the sale. (Colorado abolished the owner’s post-sale redemption in the 2006–2008 foreclosure reforms.) Exception: an HOA foreclosure leaves the owner a 180-day redemption. [Source: Nolo CO foreclosure (§ 38-38-302; HOA 180 days)]
  • Deficiency judgment: allowed — the lender may sue for a deficiency (statute of limitations ~6 years). The foreclosing holder must bid at least its good-faith estimate of fair market value (net of senior liens, taxes, and costs); a low bid does not void the sale but is a defense that reduces any deficiency (C.R.S. § 38-38-106). [Source: Justia/Nolo § 38-38-106]
  • Surplus distribution: per C.R.S. § 38-38-111 (Module 3B).
  • Sale officer: public trustee (county official appointed by the Governor in most counties).

5. Sale Procedure Playbooks

  • Treasurer tax-lien sale → treasurer’s-deed public auction — ordered steps → see treasurer-sale
    1. Treasurer publishes the delinquent list and holds the November lien sale (online via RealAuction in many counties).
    2. Premium bid — CP struck to the bidder paying the largest premium; premium credited to the county general fund (§ 39-11-115).
    3. CP holder may endorse subsequent taxes (“subs”) at the CP rate.
    4. Owner may redeem through the treasurer any time before the deed issues, paying tax + costs + 9%-over-discount interest (§ 39-12-103).
    5. After 3 years, a “lawful holder” files an Application for Public Auction of a Certificate of Option for Treasurer’s Deed (§ 39-11.5-102); treasurer reviews and records it (§ 39-11.5-103).
    6. Treasurer mails/posts/publishes notice to interested parties (§ 39-11.5-104) and holds the public auction within ~125 days of recording (§ 39-11.5-105).
    7. Minimum bid = amount owed lawful holder + treasurer’s costs; only higher bids accepted (§ 39-11.5-108). Overbid paid to junior lienors then the owner (§ 39-11.5-109).
    8. Treasurer issues the certificate of option to the winner, who presents it for the treasurer’s deed (§§ 39-11.5-115, -116). [Source: HB24-1056 enrolled text; El Paso/Rio Grande County FAQs]
  • Public-trustee (mortgage) sale — ordered steps → see sheriff-sale
    1. Default → lender records Notice of Election and Demand; public trustee sets sale, publishes, mails notices.
    2. Lender obtains Rule 120 order (reasonable probability of default).
    3. Borrower may file notice of intent to cure ≥ 15 days before sale; cure by noon the day before (§ 38-38-104).
    4. Public trustee auctions; lender must bid ≥ fair value (§ 38-38-106).
    5. No owner redemption; junior lienors may redeem (§ 38-38-302).
    6. Overbid distributed per § 38-38-111; unclaimed → State Treasurer at 6 mo. [Source: Nolo CO foreclosure; § 38-38-104, -106, -111, -302]
  • Notice requirements: treasurer’s-deed notice mailed/posted/published per §§ 39-11.5-104 and historically § 39-11-128 (3–5 months pre-deed certified-mail notice to owners/occupants/recorded interests on diligent inquiry); public-trustee notice published + mailed per Title 38, Art. 38. [Source: § 39-11-128; HB24-1056]
  • Upset bid / confirmation: none — no judicial confirmation of the treasurer’s public auction or the public-trustee sale; the public trustee issues a confirmation deed after the redemption period.
  • Payment terms: treasurer’s-deed auction — cash, cashier’s/bank check, or EFT per the treasurer’s bidding rules (§ 39-11.5-108(4)); a non-paying bidder forfeits to the next highest bidder and may be barred up to 5 years (§ 39-11.5-110). [Source: HB24-1056]
  • Deed issued: treasurer’s deed (tax) / public trustee’s confirmation deed (mortgage) — conveyed without warranty.

6. Due Process & Notice → see due-process-notice

  • Standard: notice “reasonably calculated” to reach the owner (mullane-v-central-hanover), actual mailed notice to record interest-holders (mennonite-v-adams), and additional reasonable steps when mail is returned (jones-v-flowers).
  • Colorado application — § 39-11-128 “diligent inquiry”: before a treasurer’s deed, the treasurer must serve notice (personal or certified mail) on persons in possession, the person taxed, and recorded-interest holders, on diligent inquiry, 3–5 months before the deed. A deed issued without diligent inquiry is voidable and may be set aside. [Source: Justia § 39-11-128]
  • Klingsheim v. Cordell (2016 CO 18): the Colorado Supreme Court held a treasurer owes a duty of further diligent inquiry only when the facts known show the taxpayer could not have received the mailed notice (e.g., it was returned undelivered). Where certified mail was sent to the address the owners themselves designated and was not returned (signed for by a same-surname relative nearby), no further inquiry was required and notice satisfied due process. [Source: Justia 14SC931; case-law.vlex]
  • Cordell v. Klingsheim (2018 COA 80): on remand, the Court of Appeals addressed whether due process requires a separate mailed tax-sale notice to each record owner when the owners are spouses at the same address. [Source: CourtListener; FindLaw] (precise post-remand holding on the separate-notice question — needs_verification: opinion text not fully retrieved.)
  • Consequence of defective notice: voidable — the treasurer’s deed may be set aside; not automatically void.
  • Leading cases: klingsheim-v-cordell-2016, cordell-v-klingsheim-2018, tyler-v-hennepin-county, mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers.

7. Title & Marketability

  • Deed warranty level: treasurer’s deed / public-trustee deed convey without warranty (the interest foreclosed only).
  • Marketable immediately? No — treasurer’s-deed grantees typically must quiet title before the parcel is readily insurable/marketable. (insurer practice — needs_verification.)
  • Quiet title required? Practically yes for tax-deed parcels.
  • SOL to challenge the deed: challenges to a treasurer’s deed are limited by C.R.S. § 39-12-101 et seq. and the diligent-inquiry/voidable framework of Klingsheim. (exact statutory limitation period to attack a treasurer’s deed — needs_verification.)
  • Title insurance availability: generally limited until quiet-title for tax-deed parcels; standard for public-trustee deeds after the redemption period.
  • Common defects: defective § 39-11-128 notice / inadequate diligent inquiry, unidentified recorded interests, redemption disputes, and (pre-7/1/2024) the now-cured Tyler surplus-forfeiture problem.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
klingsheim-v-cordell-2016 (2016 CO 18, 379 P.3d 270, Colo. Sup. Ct.; docket 14SC931)2016due_process / sale_procedureA treasurer owes further diligent inquiry under § 39-11-128 only when facts known show the taxpayer could not have received the mailed notice (e.g., returned mail); certified mail to the owner-designated address that is not returned satisfies due process — the treasurer need not ensure actual receipt.https://law.justia.com/cases/colorado/supreme-court/2016/14sc931.html
cordell-v-klingsheim-2018 (2018 COA 80, 434 P.3d 741, Colo. App.; docket 17CA0233)2018due_process / sale_procedureOn remand, the Court of Appeals addressed whether due process requires a separate mailed tax-sale notice to each record owner who are spouses sharing one address.https://www.courtlistener.com/opinion/4507143/cordell-v-klingsheim/
tyler-v-hennepin-county (598 U.S. 631, U.S. Sup. Ct.)2023surplus / due_processRetaining surplus equity beyond the tax debt is an unconstitutional taking — the decision that drove Colorado’s HB24-1056 Article 11.5 overbid reform.https://cl.cobar.org/features/keeping-the-surplus/

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — a bankruptcy petition stays the Article 11.5 public auction; HB24-1056 § 39-11.5-106 directs the treasurer to take no action at the scheduled auction and to continue/withdraw it per the bankruptcy rules. [Source: HB24-1056 § 39-11.5-106]
  • federal-tax-lien-redemption — federal redemption rights are expressly preserved by C.R.S. § 39-11.5-114; the IRS retains its 120-day post-sale redemption under 26 U.S.C. § 7425 where a federal lien is junior. [Source: HB24-1056 § 39-11.5-114]
  • heirs-property — co-owners / those with a legal or equitable claim may redeem under § 39-12-103; no partial redemption of less than the whole property is allowed in the Article 11.5 lawful-holder redemption (§ 39-11.5-111(10)). [Source: § 39-12-103; HB24-1056 § 39-11.5-111]
  • hoa-super-priority — an HOA foreclosure leaves the former owner a 180-day redemption (unlike a lender foreclosure, where the owner has none). [Source: Nolo CO foreclosure]
  • minors-and-incompetents-tolling — persons under legal disability get an extended redemption period under C.R.S. § 39-12-104. [Source: Justia § 39-12-104]
  • void-vs-voidable — a treasurer’s deed issued without diligent inquiry is voidable and set aside by a court, not automatically void (Klingsheim). [Source: Justia § 39-11-128; Klingsheim v. Cordell]

10. Operations

  • Where records live: county Treasurer (tax liens, CPs, redemptions, treasurer’s-deed auctions, overbid escrow), county Clerk & Recorder (deeds, deeds of trust, notices), county Public Trustee (foreclosure files, overbid), district court (Rule 120; deed challenges), Colorado State Treasurer (unclaimed property / escheated overbid).
  • Public portals: county treasurer tax-lien sale sites (El Paso: treasurer.elpasoco.com; Garfield: garfieldcountyco.gov; Eagle, Jefferson, Routt); RealAuction county auction sites; treasury.colorado.gov (unclaimed property); coloradojudicial.gov (opinions); leg.colorado.gov (statutes/bills).
  • Typical costs: treasurer’s-deed application fees run into four figures (El Paso County lists $1,300 per certificate); recording and publication fees; public-auction costs added to the minimum bid. [Source: El Paso County Treasurer]
  • Typical timelines: lien sale November; 3-year redemption before deed application; public auction ≤ 125 days after the application is recorded; overbid escrow 6 months then unclaimed property; mortgage cure ≥ 15 days before sale; no owner post-sale redemption (HOA = 180 days).
  • Key agencies: County Treasurers, County Public Trustees, County Clerk & Recorders, Colorado State Treasurer (Unclaimed Property), Colorado district courts.
  • Useful forms: certificate of purchase; certificate of redemption; Application for Public Auction of a Certificate of Option for Treasurer’s Deed (§ 39-11.5-102); notice of intent to redeem (§§ 39-11.5-111, -113); notice of intent to cure (§ 38-38-104); notice of intent to redeem for junior lienors (§ 38-38-302).

11. Meta

Legal information, not legal advice. This page summarizes Colorado statutes and case law as of the last_verified date and may be incomplete or out of date. Verify against the cited primary sources and consult a licensed Colorado attorney before acting.

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