Sell a house with a tax lien in Colorado Springs, CO: county tax lien certificates, IRS and Colorado Department of Revenue liens, how each is cleared at closing, and what a cash sale nets you. Written offer within 24 hours of our visit.
"Tax lien" covers three different things on an El Paso County house, and each clears differently. A county tax lien certificate was sold to an investor at the Treasurer's fall sale for unpaid property taxes, and it is redeemed at closing. A federal tax lien was recorded by the IRS against you personally and attaches to the house along with everything else you own. A Colorado Department of Revenue lien works the same way for state taxes. The federal and state liens follow you, but they can be paid from the sale or, if there is not enough equity, discharged from the property so the sale can close.
Colorado Springs Cash Buyers buys houses with tax liens of every kind across Colorado Springs, Fountain, Monument and the rest of El Paso and Teller counties. We buy as-is and work with the title company and, when needed, the IRS lien unit to clear the title for closing. This page explains how each lien is handled, what paperwork the government requires, how long it takes, and what you can expect to net.
County property tax liens
When property taxes go unpaid, the El Paso County Treasurer sells the lien each fall and the buyer holds a certificate earning redemption interest, 13 percent for the 2026 sale and 14 percent for 2025. The owner redeems by paying the Treasurer the taxes, interest and any later taxes the investor paid. After August 1 of the third calendar year following the sale the investor may apply for a treasurer's deed and the county auctions the right to it. In a sale, the title company requests the redemption figure from the Treasurer, pays it from the purchase price, and the certificate is released. It is routine and adds a few days at most.
Federal tax liens on a Colorado Springs home
An IRS Notice of Federal Tax Lien recorded with the El Paso County Clerk and Recorder attaches to the house. There are two ways to sell. If the price covers the mortgage, closing costs and the full IRS balance, the title company simply pays the IRS from the proceeds and the lien is released. If it does not, you apply for a Certificate of Discharge of Property from Federal Tax Lien, which releases the house from the lien in exchange for whatever net proceeds exist after senior liens and costs. The application requires a contract, a title report and a settlement statement, and the IRS asks for it at least 45 days before the closing date. These files do not scare us off; the key is to start the application the day the contract is signed and to set the closing date realistically.
Colorado state tax liens and other government liens
The Colorado Department of Revenue records liens for unpaid income or sales tax, and they are handled much like federal liens: paid from proceeds when there is equity, or released from the property by agreement when there is not. Child support arrears can create a lien through Colorado Child Support Services. City of Colorado Springs code enforcement assessments and Colorado Springs Utilities balances can appear on the tax roll or as recorded liens. The title company's search catches all of these, and we price the house knowing that each one must be settled from the price or released before we can own the house free of them.
What you net when liens are involved
Your proceeds are the price minus the mortgage payoff, all liens paid at closing, and any delinquent taxes. We pay the customary closing costs and there is no commission. When liens exceed the equity, a discharge or a negotiated payoff is what makes the sale possible, and in those cases the sale may net you little, but it stops the interest and penalties from growing and removes the house as a collection target. We will show you the projected settlement statement before you commit so there are no surprises at the table.
Why owners with tax liens choose a cash sale
A financed buyer's lender will not close on a house with an unresolved federal lien, and a listing agent will struggle to market a Shooks Run bungalow with a title report full of recorded notices. A cash buyer who has handled discharges before, and who is not depending on an appraisal or underwriting, can hold the contract open through the IRS review and close when the certificate arrives. There are no showings during that time and no risk that a retail buyer walks when the title commitment comes back. The condition of the house is priced once; the liens are paperwork.
Timeline
County tax liens: a few days for the redemption figure, closing in about a week. Federal or state liens with enough equity to pay in full: the same, plus the payoff letter from the agency. Federal liens needing a discharge: plan for six to eight weeks from contract to closing. Tell us the address, which liens you know of, and whether any mortgage is also behind. We visit within a day or two and give you a written offer within 24 hours of the visit, with the timeline spelled out.
Selling to us vs. a traditional listing in Colorado Springs, CO
| Comparison | Traditional agent | For sale by owner | Colorado Springs Cash Buyers |
|---|---|---|---|
| Cash offer | Rarely | Rarely | Yes |
| Sell as-is | Repairs expected | Repairs expected | Yes |
| Time to a contract | roughly two months in Colorado Springs now | Often longer | 24 hours after the visit |
| Agent commission | About 6% | Buyer's agent usually paid | None |
| Closing costs | Paid by seller | Paid by seller | Customary costs paid by us |
| Showings | Yes | Yes | One visit |
| Financing fall-through | Possible | Possible | None, we fund it |
| Price cut after inspection | Common | Common | No inspection period |
| Closing date | Lender's schedule | Buyer's schedule | Yours |
We buy houses in Colorado Springs for any reason, any condition, or any challenge
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