How To Avoid Property Tax Foreclosure In California

How To Avoid Property Tax Foreclosure In California 

What happens if I’m late on my property taxes in California?

Avoid Property Tax Foreclosure In California
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If your searching how to avoid property tax foreclosure in California, we’ve provided you with some invaluable information. Property becomes tax delinquent in California. if the tax remains unpaid at 12:01 AM on July 1st. If you’re late, you’ll likely be subject to a fine. The property doesn’t go straight to tax auction. You have 5 years to get current on your property taxes or the county tax collector will have the power to sell that property in order to collect the past due taxes. If your property has a nuisance abatement lien or code violation, you only have 3 years to get current.

The tax collector must attempt to sell the property within 4 years of that property becoming subject to the sale.

Public auctions are the most common way to sell tax delinquent property in California. A tax collector must attempt to personally contact you regarding the sale if the property is your primary residence.

Steps To Avoid Property Tax Foreclosure

  1. You have the right to pay the debt in installments. You can choose to pay the debt in installments to stop the sale as long as you’re able to keep up with the payment. Unfortunately, you cannot get your property back after it is sold at public auction in California. Make sure to fill out the tax agency’s plan forms. You may have to send pay stubs and/or proof of income. Sending documents to show hardship may help your position.
  2. If working out a plan doesn’t work, try getting a loan to pay for the delinquent taxes. There are lenders that have programs specifically for delinquent property taxes.
  3. File for bankruptcy; filing for a Chapter 13 bankruptcy entitles you to a stay, or halt of actions by either a mortgage lender or a county (or other property tax collector).

Property Tax Sales In California

How To Avoid Property Tax Foreclosure In California
There are large penalties for late taxes in CA.

If your property is subject to a tax sale, the tax collector must give you written notice of the sale as well as attempt to personally contact you regarding the sale. The tax collector must attempt to contact you not less than 45 days or no more than 120 days from the sale date. They must also post a notice in a public area or in a newspaper.

Property Tax Postponement

In California, there is a special program for citizens with an annual household income of $35,500 or less and 40% equity to apply for a deferred payment on their principle residence.

Selling A House That Is Late On Taxes

You can sell a house that is late on taxes, but be aware there may be a tax lien on the property that has to get paid. If you’d like a no-obligation, all cash, as is offer on a property in California give us a call, or simply fill in the form below.

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This article is for informational purposes only. This is not legal advice. If you need legal advice, seek a competent local attorney.