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Updated 3 months ago on . Most recent reply

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Jason Miller
  • Contractor
  • Los Angeles
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California Delinquent tax questions..

Jason Miller
  • Contractor
  • Los Angeles
Posted

Hello community!

I have been working in this neighborhood for a while fixing up the historic homes and noticed another one of the houses needing work. After stopping by to see and knocking on the door, no answer to get in contact of the owner, I looked up to find the home is now 4  years delinquent on taxes.

The house is needing much work unfortunately and with taxes being delinquent, the owner may not have the funds to rectify any of the situation. 

Though in CA, 5 years delinquency on property taxes, the city can file a lien and auction off the house.

If I pay those taxes, what's the process of if I wanted to take possession of the property after the 5 years delinquent taxes? As I have not set foot in that house nor tried to make any action to live and repair the property per adverse possession. Do I have grounds to put a lien myself or levy the property from the owner? Seeing this as an opportunity to have property at a massive discount in Los Angeles without needing to put $150k+ down would be great!

Mind you, I'm just looking to see what is possible as if there is someone living in the home, that would be a slimy move to take the property without communication. But, if they have given up on the home, is another story.

I plan to stop by the house again soon and leave a note and try to find contact info to talk with them to get their story.

From what I have gathered, the original owner passed away and one of their children obtained the estate of the home a while ago but, may be living in Orange County. Cannot confirm as of yet.

Not sure the best route, thinking I should consult with a RE lawyer, and talk to the city tax office if I can 't get a hold of the owner before the property goes into the 5 year delinquency.

Thanks!

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
64,203
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Quote from @Dustin Tucker:

Hello Jason,

Your best bet is going to be to track down the owner, or the owner's heirs.  There is no set time for the county to foreclose on the property via a tax sale, according to this article purchasers of the tax lien certificate have to wait 5 years, as the owner has a redemption period after the tax sale, so you could be waiting a while, and if I'm not mistaken, you have to pay the taxes each year until the 5 year period is over, then you have to file for a deed or file a lawsuit to quiet title.

https://smartasset.com/mortgage/how-to-buy-tax-liens-in-cali...

Hope this helps,

Dustin


this is not correct..  there are NO tax liens in CA  its a tax deed state.. After 5 years of non payment the property will get listed on the annual County tax sale list.. Bid 4 Assets handles most CA county tax sales.. the money is due the state not the county.. If you win the bid you pay for it and within 60 days you will get a Tax deed from the county tax collector to record.. there is NO right of redemption in CA.. UNless the entity or person can prove that insufficient notifications was done to the public.. IE  they must publish for 21 consecutive days prior to auction. Anything less ( and I saw it happen once) and the sale is voidable if you bring a legal action. 

the 5 years is generally what title companies want to see before they will issue title insurance. 

thats how Tax sales work in CA.. We have bought hundreds of parcels at tax sale in CA over the decades. 
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