Property tax foreclosure in California

The property tax process in California, step by step

1. Taxes become delinquent

   December 10 and April 10

   The first installment of your property tax bill is delinquent after 5 p.m. on December 10, and the second after 5 p.m. on April 10. A 10 percent penalty is added to each late installment, and after the second installment is late the county can add a cost charge of up to $55.

   Cal. Rev. & Tax. Code §§ 2617, 2618, 2621

2. The home becomes tax-defaulted

   July 1 after the tax year

   Taxes still unpaid at 12:01 a.m. on July 1 are declared in default by law. From then on, redemption penalties of 1.5 percent per month are added, plus a $15 redemption fee. You still own the home and can pay off the full amount at any time before the sale.

   Cal. Rev. & Tax. Code §§ 3436, 4102, 4103

3. Ask about an installment plan

   Before the county gets the power to sell

   You can choose to pay defaulted taxes in installments if you start before 5 p.m. on the last business day before the tax collector gets the power to sell. The county may charge a set-up fee. If you miss a required payment, the plan ends and you may not be allowed to start a new one, so ask the tax collector for the exact terms in writing.

   Cal. Rev. & Tax. Code § 4217

4. Power to sell after five years

   5 years after default

   Five years after a home becomes tax-defaulted, the tax collector has the power to sell it and must try to sell it. The period is three years for nonresidential commercial property, and it can be paused for homes damaged in a declared disaster and not yet repaired.

   Cal. Rev. & Tax. Code § 3691

5. Notices before the auction

   45 to 120 days before the sale

   The tax collector must send you a notice by certified mail 45 to 120 days before the sale with the date, the amount needed to redeem, and your right to claim excess proceeds. The notice is also published for three weeks. If the home is your primary residence, the county must try to contact you in person 10 to 120 days before the sale.

   Cal. Rev. & Tax. Code §§ 3701, 3702, 3704.7

6. Last day to redeem and the tax deed

   Close of business, last business day before the sale

   Your right to redeem ends at the close of business on the last business day before the auction starts, and a payment sent by mail must arrive before then. If the home sells, the buyer gets a tax deed that wipes out most liens, including mortgages. If you still live there, get legal help right away.

   Cal. Rev. & Tax. Code §§ 3707, 3712

7. Claim the excess proceeds

   Within 1 year after the tax deed is recorded

   If the sale brings in more than $150 over the taxes and costs, the county must mail notice of your right to claim it within 90 days after the sale. File your claim with the county so it is postmarked within one year after the tax deed is recorded. Lienholders of record are paid first, then former owners, and money no one claims in time can go to the county general fund.

   Cal. Rev. & Tax. Code §§ 4674, 4675, 4676

Common questions in California