Legal Question in Real Estate Law in California

Re: property taxes

The only things I can add to Mr. Gibbs' answer are (1) be sure you have applied for and are receiving the homeowners' exemption, if you are entitled to it; that'll save you a bit; and (2) if you bought your home in the early to mid 2000s at a much higher price than it's worth today, you might benefit from asking for a reappraisal at today's fair market value. The fact that you're not mentioning mortgage payments as a problem suggests, however, that you've paid it off and thus had your home for a long time.

Re: property taxes

Contact the taxing agency to ask.

Re: property taxes

As a general rule there is no hardship waiver of property taxes. Taxes, however, unlike your mortgage do not immediately go to foreclosure if they are unpaid. From the date of default on property taxes, it is generally 3 to 5 years before it would go to foreclosure by the county tax assessor. So if you do not pay them, you probably won't lose your house anytime soon, however, you will get hit with a pretty hefty penalty and interest.

That being said, however, your lender on your home CAN declare a default on your mortgage as a result of the taxes not being paid, and can either advance the taxes for you, then require you to repay them to the lender. If you fail to repay them, then they can foreclose much more rapidly than the tax collector. Alternatively, the bank can proceed to foreclosure without even advancing the taxes for you.

My suggestion is to call your lender, ask for their work-out department. Tell the lender you cannot pay your property taxes at this time, but would like to see if they can help. They might be willing to advance the taxes on your behalf, and add it to your loan balance. As an alternative, you might want to look into a reverse mortgage if you are having trouble paying bills. It could generate some cash for you (depending upon the equity in your home) and eliminate your mortgage payment. Consult a loan broker who specializes in reverse mortgages for the advantages and disadvantages of doing so. Good luck.

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