81399672
Premium
join:2006-05-17
Los Angeles, CA
| How many tax defaults can u have before u lose your house?
One of my neighbor just defaulted on second tax bill, the first one was from last year and second is from this year. How long before he loses his house? Is their any common rule or does this depends on state by state?
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i am not a lawyer but I do play one on tv |
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McSummation
Mmmm, Zeebas Are Tastee.
Premium,MVM
join:2003-08-13
Round Rock, TX | After the mortgage failed to pay my county taxes the second year in a row, I got a "first notice of foreclosure" from the sheriff.
I'm in Texas, your mileage may vary. |
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81399672
Premium
join:2006-05-17
Los Angeles, CA
| said by McSummation  :After the mortgage failed to pay my county taxes the second year in a row, I got a "first notice of foreclosure" from the sheriff. I'm in Texas, your mileage may vary. In california homeowner pays it him self. However that is still interesting
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i am not a lawyer but I do play one on tv |
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coxta
Ultramundane
Premium
join:2000-07-15
LALALALALALA
 ·Pacific Bell - SBC
| reply to 81399672
In California the homeowner can pay the taxes, or if they have PMI (private mortgage insurance), whomever holds the insurance pays the taxes, since they are collected monthly from the homeowner. It's not unheard of for the insurance company to neglect to pay property taxes. The homeowner should always follow up.
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cum hoc ergo propter hoc |
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81399672
Premium
join:2006-05-17
Los Angeles, CA | pmi has nothing to do witn property tax |
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drslash
Goya Asma
Premium
join:2002-02-18
Marion, IA
| True. But as part of the agreements or PMI contract the money to pay the taxes are put in escrow monthly. The mortgage company or insurance company then disperses the escrowed money to the taxing authority.
As far as your original question, I would guess that in California that your neighbor has more time to get caught up on the taxes. In my state, the house can go to a tax sale after 4 or 5 months of delinquency.
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ghostpainter
I Write for the Apocalypse
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join:2002-05-25
Rancho Cucamonga, CA
clubs:
| reply to 81399672
Most people I know who live in homes pay quarterly tax bills, unless they are under HUD like I am with this double wide I live in, then we pay once per year.
So presuming that he is on quarterly, is he paying two or three quarters then missing one? And if he is on HUD, and missing payments, a lot of times they will attach a Lien to the house for each non payment....Then when the home is sold, all of the liens have to be paid before the home can be sold.
There are Home Owner policies that cover non payment of taxes....a lot of questions need to be asked of your friend before a correct answer can be provided.
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81399672
Premium
join:2006-05-17
Los Angeles, CA | I know he pays 2 installments and i would surprised if it was under HUD, not my friend just my neighbor and i just happened to notice it when i was surfing the web and was bored
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i am not a lawyer but I do play one on tv |
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tacoma
Bleeding Dodger Blue
Premium
join:2001-05-18
Riverside, CA
| reply to 81399672
As per www.boe.ca.gov
»www.boe.ca.gov/proptaxes/pdf/pub29.pdf
If taxes are not paid by the delinquent date, there is a 10 percent penalty. If you receive
a notice of impending default, and the taxes remain unpaid on the date the notice says
they’re due, the property is declared tax-defaulted. Monthly penalties of 1.5 percent are
added to the unpaid taxes. The property owner has the right to redeem the property by
paying the taxes, penalties, and costs within five years of the date the property becomes
tax-defaulted. If the property is not redeemed within five years, the property may be
sold at public auction or acquired by a public agency. |
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dogma
Premium
join:2002-08-15
Boulder City, NV
| reply to 81399672
Missed tax payments can result in additional interest, penalties, collection costs and legal fees if they are not paid on time. If the property is in one of the special financing districts, such as Mello-Roos, every effort to pay the bill on time should be made to avoid any "accelerated" foreclosure action.
From what I have seen, the State is not very interested in Foreclosing and taking property, as they can ONLY recover the taxes owed. Once the [unpaid] tax bill/interest/penalties adds up over some years, they may sell the tax liability (I think that would be it) to a third party. This way, the taxes are paid, and now the "third party" can take lien holder actions, including foreclosure.
At 2 missed payments, it's not really such a big deal, unless it a Mello-Roos like situation. |
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Lovehound
join:2005-08-18
Northridge, CA
| reply to ghostpainter
said by ghostpainter :Most people I know who live in homes pay quarterly tax bills... Taxes in Los Angeles County are due and payable twice a year, IIRC it's December 10th and April 10th. However, some people are on "learner permits" (a joke) and have impound accounts where an intermediary pays their taxes and they presumably make monthly payments to the intermediary which include interest, principle, property taxes and often home owner's insurance.
The going setup is to pay 20 percent down and nobody will ask you for an impound account. Then you can be a grown up and pay your property taxes and insurance yourself, and pay the penalty if you forget. |
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supertbone
join:2002-04-04
Pleasant Grove, UT
2 edits | reply to 81399672
Having worked for the Tax Services arm of a major home lender I can honestly say that it will take at least 5 years in CA. They are granted a 5 year redemption period in CA. Texas tax collectors are considerably quicker to seize the home. I don't remember how fast but with in the time frames you mentioned, it seems likely.
If his home is mortgaged, I am surprised his mortgage company has not stepped in. If he has an escrowed tax payment, the mortgage company (or tax servicer for the mortgage company) is indemnified for it and if he looses his home then he has recourse to sue them. If his property taxes were not impounded (not escrowed) the mortgage companies usually step in and pay the taxes to avoid the property loss (to protect the investor), force impound the mortgage, and recover the back taxes from the borrower.
Of course if he is not mortgaged then you might have a new neighbor. |
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81399672
Premium
join:2006-05-17
Los Angeles, CA
| he is mortgaged, everyone here are. No one here has escrow account, it's not the way most people buy houses here(if you worked in tax service you probably know that). Well 5 years is a long time of defaulting
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i am not a lawyer but I do play one on tv |
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No_Strings
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join:2001-11-22
The OC
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| said by 81399672 :he is mortgaged, everyone here are. No one here has escrow account, it's not the way most people buy houses here(if you worked in tax service you probably know that). Define "here." No one? I have a tax escrow account. I'd prefer to pay the taxes in a lump when due, but my lender wanted to do it this way. Since you know everything, you probably knew that. |
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81399672
Premium
join:2006-05-17
Los Angeles, CA | When i say "here" i am saying majority of people in southern caifornia
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i am not a lawyer but I do play one on tv |
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tacoma
Bleeding Dodger Blue
Premium
join:2001-05-18
Riverside, CA | I have a tax escrow account as well. |
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81399672
Premium
join:2006-05-17
Los Angeles, CA
| said by tacoma :I have a tax escrow account as well. how many years ago did you get your loan?
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i am not a lawyer but I do play one on tv |
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dogma
Premium
join:2002-08-15
Boulder City, NV
| I too have a tax escrow account. My loan was refi'd to a 10-year fixed in 2003, then re-written down in 2004. At the time of the first refi, it was a 31% LTV. The lender did not require an impound.
Tax escrow was an option. From my "past" experiences, I elected to take the option.
said by 81399672 :he is mortgaged, everyone here are. No one here has escrow account, it's not the way most people buy houses here(if you worked in tax service you probably know that). Well 5 years is a long time of defaulting Why are you so concerned about your "neighbors" tax situation? |
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81399672
Premium
join:2006-05-17
Los Angeles, CA | Foreclusure houses get sold much cheaper, and i know this one is in really good shape so would want to buy it
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i am not a lawyer but I do play one on tv |
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tacoma
Bleeding Dodger Blue
Premium
join:2001-05-18
Riverside, CA
| reply to 81399672
said by 81399672 :said by tacoma :I have a tax escrow account as well. how many years ago did you get your loan? '03
Tell your 'neighbor' to pay their tax bill. |
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