Property Tax Delinquency in California?

California can sell your property if you are delinquent for five years on paying your property taxes.

It is your responsibility as a homeowner to stay current with paying your property taxes generally with two payment installments a year. These taxes paid are used by the government for public services, schools, road maintenance and improvements, parks, etc…
When a homeowner becomes delinquent on their property tax bill, the overdue amount will become a lien against the title of the property. This usually happens after you have not made any payment installments for five years. If the state of California places a lien against your property, it grants the state the authority to sell your property at a tax auction to recover what is owed in back property taxes.
Your home could be sold through a tax sale. Property tax sales of homes usually happen five years after the property is delinquent and has tax defaulted. (Cal. Rev. & Tax. Code § 3362).
Public auctions are held to sell most tax-defaulted homes. In some cases, they are sold through a sealed bid sale. Some are also sold through negotiations to a public agency or nonprofit groups.

Property Tax Sale notification in California

It is the Law in California, that a tax collector must provide you with a written notice. They must also attempt to contact you personally, if possible, before intending to sell your home at a tax auction sale.

Type of Notice Before a Tax Sale in California

California law states a tax collector must provide notice of the proposed sale by certified mail. It should not be less than 45 days and more than 120 days before the auction sale date to your last known mailing address on file. This law code is (Cal. Rev. & Tax. Code § 3701). Tax auctions notices must also be published in the newspaper. If the newspaper is not an option, then the notice should be posted in three public places. This law code is (Cal. Rev. & Tax. Code § 3702).

Property Tax Delinquency in California?

Tax Collector Usually Must Also Try to Contact You Personally

If the home is your primary residence, the tax collector must make a reasonable effort to personally contact you (the owner-occupant) not more than 120 days nor less than ten days before the sale. If the collector can't contact you, the collector must try to serve you a written notice not less than five days before the sale. (Cal. Rev. & Tax. Code § 3704.7).

Redemption process prior to a California Tax Sale

Many states allow taxpayers who are delinquent to pay off the amounts of taxes that they are delinquent. (some either before or after a tax auction sale). This allows the homeowner to keep their home. This process is known as "redeeming" their property.
California allows a five-year redemption period before your property is sold at a tax sale auction. The state law, the tax collector typically cannot sell your property until five years after the property that is delinquent defaults on the property taxes owed. This law code is (Cal. Rev. & Tax. Code § 3691). If you can pay off the delinquent amounts owed during this time, this will stop a tax sale.
It is important to know that you do not get a legal right to redeem the home after the sale. The right to redeem your delinquent property expires at the close of business hours of the last business day before the sale auction date.

Paying Your Taxes in Installments

Installments for delinquent amounts may be an option at any time up until 5:00 p.m. on the last business day before the sale auction date when the tax collector has the authority to sell the property. This law code is (Cal. Rev. & Tax. Code § 4217). If there is an installment agreement in place, the collector cannot move forward with the sale. This code is (Cal. Rev. & Tax. Code § 4218).
This law code (Cal. Rev. & Tax. Code § 3693.1, § 3707) does give you a right to redeem if your home does not sell or the buyer who bid to purchase it at the sale does not go through with buying it. You at that point still have the right to redeem your property.

How Much You'll Have to Pay to Redeem Your California Home

To redeem the home, you'll have to pay:

• You must pay the total amount of all past-due taxes.
• You must pay delinquent penalties and costs.
• You must pay redemption fees and penalties (Cal. Rev. & Tax. Code § 4102, § 4112).

The winning bid at the Auction must be at the minimum as much as the amount it would cost for you to redeem the home, it must also be sufficient to cover costs, which include:

• the amount that is owed of the defaulted taxes.
• the amount that is delinquent in penalties and costs
• All of redemption penalties, and redemption fees. (Cal. Rev. & Tax. Code § 3698.5).

Paying Your Taxes in Installments

Your Rights to Challenge the Validity of the Sale of your property. Once a tax sale has occurred, you may have a right to get your home back. You must convince the board of supervisors in charge to rescind the sale. You must show proof that the sale of your property was invalid. For example, you can prove you had paid the redemption amount prior to the sale deadline but the tax collector still sold your property at auction. You may be able to contest the illegalities of the sale procedure.
The process for requesting a rescission can be complicated. There is a deadline you must meet to ask for a rescission by a specific deadline, this deadline is usually a year after the tax deed has been executed. This law code is (Cal. Rev. & Tax. Code § 3725). It is exceedingly difficult to get your home back through this method. It rarely happens. In most cases you will need an attorney who specializes in the field of Law.

Tax Lien Certificate Sales in California

The state of California law also gives counties the ability to sell tax lien certificates. This is an option rather than selling tax-defaulted home at auction. This resolution is authorized by the county board of supervisors. (Cal. Rev. & Tax. Code § 4511, § 4521). Tax lien certificates give the purchaser the right to collect the tax debt. Most California counties usually do not sell tax lien certificates.