California Delinquent tax questions..

Jason Miller · 2024-08-12T18:48:41-07:00

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!

Dustin TuckerPro Member

Lender · Savoy, TX · Member since 2020 · 187 posts · 78 votes

2y

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

[email protected]903-647-6036

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
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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2 Reply

Rick H.

Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes

2y

Trying to “take over” a vacant property that appears abandoned is not for the untrained would-be investor. Especially anywhere in California, and particularly Los Angeles county.

Talk to longtime neighbors who might know story and whereabouts of owner, but don’t accept as fact.

I’d start with researching who the record owner is. If you don’t have access to title company services, go to Norwalk recorder’s office and “chain” out the ownership and open mortgages. Check out the property taxes to determine if defaulted and address where bills are sent.

Owner could be alive, living nearby or in a facility (?) or shipped to parts unknown.
Or deceased. I always check probate courts for estate filings and possible Conservatorship of a senior.

Another possibility is that ownership has already changed and title held by entity, just waiting to take next step to rehab, demo, assemble other ownership, etc.

1 Reply

Jason Miller
OP
Contractor · Los Angeles · Member since 2024 · 3 posts · 0 votes
1y
Quote from @Rick H.:

Trying to “take over” a vacant property that appears abandoned is not for the untrained would-be investor. Especially anywhere in California, and particularly Los Angeles county.
Talk to longtime neighbors who might know story and whereabouts of owner, but don’t accept as fact.
I’d start with researching who the record owner is. If you don’t have access to title company services, go to Norwalk recorder’s office and “chain” out the ownership and open mortgages. Check out the property taxes to determine if defaulted and address where bills are sent.

Owner could be alive, living nearby or in a facility (?) or shipped to parts unknown.
Or deceased. I always check probate courts for estate filings and possible Conservatorship of a senior.
Another possibility is that ownership has already changed and title held by entity, just waiting to take next step to rehab, demo, assemble other ownership, etc.

Yeah, I see the hoops I have to jump through to find anything.
As much as I've found is the owner passed away and one of the children(maybe only child) inherited the property and built a trust for it but, doesn't live in town and the house hasn't been lived in over 10 years.
I may have found contact info for the trustee but, not sure the best course of communication to inquire about the house without coming off as aggressive
0 Reply

Mike Osterman

Specialist · Novato, CA · Member since 2012 · 190 posts · 57 votes

1y

This is where I spend most of my time.

You want frustrating? Find and owner who doesn't care. I've got a few. The others are MIA and I'm out door knocking neighbors (Three this week!)

Most of my leads....lead to mental health issues.

You're going to turn over lots of stones. But...you'll find gold. I'm selling four houses from one estate. Squatters, guns and shenanigans ( Fake Will) are afoot!

I send letters to almost anyone I can find who is related and those are not. You'll get calls from all kinds of people who think they may have some money coming.

My favorite call is when a seller says "How did you find me?"

Good luck and prepare for the long haul.

1 Reply

Jason Miller
OP
Contractor · Los Angeles · Member since 2024 · 3 posts · 0 votes
1y
Quote from @Mike Osterman:

This is where I spend most of my time.
You want frustrating? Find and owner who doesn't care. I've got a few. The others are MIA and I'm out door knocking neighbors (Three this week!)
Most of my leads....lead to mental health issues.
You're going to turn over lots of stones. But...you'll find gold. I'm selling four houses from one estate. Squatters, guns and shenanigans ( Fake Will) are afoot!
I send letters to almost anyone I can find who is related and those are not. You'll get calls from all kinds of people who think they may have some money coming.
My favorite call is when a seller says "How did you find me?"
Good luck and prepare for the long haul.

That side of RE sounds like it could be a fun venture for me as, I like to search for gold where others can't quite see it. Or moreso, where others don't have the patience.. lol
I'm sure it can be a pain tho but, that's great you can make headway with it!
What's your best way you reach out to owners? Just a call or letters work better? Would love any pointers!
Thanks!
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California Delinquent tax questions..

California Delinquent tax questions..

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