🏠 If You’re Behind on Property Taxes, You Still Have Options
If you have equity, you usually have multiple ways to resolve delinquent property taxes before it escalates. Our role is to help you choose the best strategy—based on your equity, timeline, and goals.
🗓️ The California Timeline (What Typically Happens)
1) 📬 Property Tax Bill Issued
Most secured property taxes in California are paid in two installments.
2) ⚠️ 1st Installment Delinquent (Commonly after Dec 10)
If the first installment is not paid by the delinquent date, a penalty is added (commonly 10%).
3) ⚠️ 2nd Installment Delinquent (Commonly after Apr 10)
If the second installment is not paid by the delinquent date, another penalty is added (commonly 10%, plus costs in some counties).
4) 🚨 Tax Default (Typically when unpaid as of June 30 → Default on July 1)
If any secured taxes remain unpaid as of June 30, the property typically becomes tax-defaulted on July 1, and additional charges begin.
✅ Common additional charges after default can include:
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💸 Monthly penalties/interest (often 1.5% per month, which equals 18% annually)
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🧾 Redemption fee (county-specific)
5) ⏳ “Power to Sell” Risk (Long-Running Delinquencies)
If taxes remain unpaid for years, the property can become subject to the tax collector’s power to sell, which can lead to a public auction tax sale if not resolved.
🧭 Our Solutions (Pick the Strategy That Protects Your Equity)
💰 Option A: Cash Offer Sale (Fast Resolution)
✅ Best when: you need speed, certainty, and a clean exit
How it helps:
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⏱️ Fast closing timeline
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🧾 Taxes and liens can typically be paid from escrow proceeds
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🛠️ Often “as-is” (no repairs)
🏡 Option B: Traditional Sale (Maximize Price)
✅ Best when: you have time to market and want the highest net
How it helps:
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📈 Exposure to the open market can increase sale price
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🧾 Delinquent taxes are typically paid at closing through escrow
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🧠 Strategy-driven pricing + marketing to protect your net
🏦 Option C: Short-Term Loan (Bridge to Sale or Refinance)
✅ Best when: you have strong equity, and just need time
How it helps:
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🧯 Stops the situation from escalating while you execute a plan
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🏁 Can buy time for a higher-priced traditional sale or refinance
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🔄 Often used as a temporary bridge
🏠 Option D: Second Mortgage / Home Equity Strategy
✅ Best when: you have equity and want to keep the home
How it helps:
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🧾 Pays off delinquent taxes to bring the property current
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🧠 Can be paired with longer-term financial planning
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🔒 May help preserve ownership (subject to qualification)
🔍 Our Process (Simple + Transparent)
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🧾 Tax & Equity Review (we identify your payoff risk and your equity position)
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🧭 Strategy Call (Cash Offer vs Traditional Sale vs Loan options)
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📑 Action Plan (timeline, next steps, and the cleanest path forward)
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✅ Execute (close, cure, or restructure—based on what you choose)
📞 Get a No-Obligation Tax Delinquency Strategy Review
Every situation is different. Equity, timelines, and county rules matter.