Step 1: Taxes are billed by your county
In Colorado, property taxes are assessed and collected at the county level. Your county treasurer sends the bill, and if it is not paid, the balance becomes delinquent and begins to accrue interest.
Step 2: The county holds an annual tax lien sale
Each year, typically in the fall, county treasurers hold a tax lien sale. Here is the part most homeowners do not realize: the county is not selling your house. It is selling a tax lien certificate — the right to be repaid the taxes, plus interest, by you.
Key point: An investor who buys the certificate pays your overdue taxes to the county. You keep ownership of your home. What you now owe is the taxes plus interest, which can be paid to redeem the lien.
Step 3: The redemption period
After a lien is sold, Colorado gives homeowners a redemption window — generally a few years — during which you can pay the amount owed plus the state-set interest and clear the lien. As long as you redeem within that period, the lienholder cannot take your property.
Step 4: A treasurer's deed — only if nothing is done
If the lien is never redeemed, the certificate holder can eventually apply for a treasurer's deed, which is the step that can transfer ownership. This is the outcome to avoid — and it is avoidable, because it only happens after the redemption period passes with no action.
What about my equity?
Colorado law has been updated in recent years to strengthen homeowners' rights to any surplus value beyond the taxes owed. The details are technical and situation-specific, so if you have significant equity, it is worth confirming your rights with your county treasurer or an attorney — and acting before deadlines pass.
The takeaway
A tax lien sale is a process with built-in time to respond, not an instant loss. Knowing where you are in that process tells you exactly what your options are.