What is tax lien foreclosures?

Tax lien foreclosures are a means of collecting unpaid property taxes in California. When a taxpayer fails to pay their property taxes, the county in which the taxpayer owns the property has the authority to place a lien (a type of financial claim) on the property. This lien then allows the county to foreclose on the property, meaning the county can seize and sell the property in order to collect the unpaid taxes. The process for a tax lien foreclosure typically begins with the county issuing a Notice of Default. This notice, which is recorded with the county, lets the taxpayer know that they are at least 90 days behind on their property taxes. The taxpayer then has a specified amount of time to pay the unpaid taxes. If the taxpayer fails to pay the taxes within the specified period of time, the county can then begin the foreclosure process. Once the foreclosure process begins, the county will hold a public auction, during which interested buyers can bid to purchase the property. The minimum bid at the auction is typically the amount of unpaid taxes, plus interest and other fees. The property is then sold to the highest bidder at the auction. The proceeds from the sale of the property then go to the county to cover the unpaid taxes. Tax lien foreclosures are a powerful tool for county governments in California to collect unpaid property taxes, but they can also be a detriment to taxpayers who are unable to pay their taxes or who are unaware of the taxes that they owe. Therefore, it is important to stay informed and up to date on property taxes in order to avoid a tax lien foreclosure.

Related FAQs

What are the impacts of tax abatements on property taxes?
What is the difference between property taxes and income taxes?
How can I apply for a property tax deferral?
How do I resolve property tax disputes?
What is a property tax assessment appeal process?
How can I reduce my property tax bill?
What are the benefits of appeal a property tax assessment?
What is the difference between the assessed value and the actual value?
What is the standard appeal process for challenging a property tax assessment?
What is the difference between a property tax rate and a tax rate?

What is tax lien foreclosures?

Related FAQs

Related Blog Posts