Tax Foreclosure in LA: How to Prevent a Tax Default Sale
How Tax Default Sales Work in Los Angeles County
In California, when property taxes go unpaid, the property becomes "tax-defaulted." The process is governed by the California Revenue and Taxation Code. Los Angeles County has one of the longest timelines in the country before a property is actually sold, which gives homeowners significant time to act — but only if they do not wait until it is too late.
The Timeline
July 1 — Tax Default: Property becomes tax-defaulted if property taxes remain unpaid at 12:01 AM on July 1 of the fiscal year following the year the taxes were due. At this point, a 1.5% monthly penalty begins to accrue.
Years 1-5 (Residential) or 1-3 (Commercial) — Redemption Period: The tax default opens a waiting period during which the property owner can redeem (pay) the delinquent taxes, penalties, and costs at any time. For residential property, this period is five years. For non-residential commercial property, it is three years.
Power to Sell: After the five-year (or three-year) period expires, the Los Angeles County Treasurer and Tax Collector (TTC) has the power to sell the property. The TTC must attempt to sell the property within four years of it becoming subject to sale.
Notice: Before the sale, the TTC sends notification by registered mail to the owner of record and any other party of interest, informing them of the intent to sell. The sale cannot occur sooner than 45 days after this notification.
Public Auction: Tax-defaulted properties are sold at public auction, typically conducted online through a platform like Bid4Assets. The sale extinguishes all existing liens and encumbrances on the property.
After the Sale: The TTC files reports with the County Recorder, County Assessor, and the State Controller to transfer title and distribute proceeds.
Important: No Right of Redemption After Sale
Unlike some other states, California does not provide a right of redemption after the tax sale. Once the property is sold at auction, the former owner loses all rights. This makes it critical to act during the redemption period.
Programs and Resources That Can Help
LA County Treasurer and Tax Collector (TTC)
The TTC offers installment plans for delinquent taxes and can provide information about your property's status.
- Phone: (213) 974-2111
- Website: ttc.lacounty.gov
Five-Year Payment Plan
California Revenue and Taxation Code Section 4216 allows property owners with tax-defaulted property to enter into a five-year installment plan to pay off delinquent taxes. Contact the TTC to set up a plan.
California Property Tax Postponement Program
Administered by the State Controller's Office, this program allows homeowners who are at least 62 years old, blind, or disabled to defer current-year property taxes on their primary residence. Requirements include at least 40% equity in the property and annual household income of $51,762 or less (threshold adjusted periodically).
- Phone: (800) 952-5661
- Email: postponement@sco.ca.gov
- Website: sco.ca.gov
LA County Department of Consumer and Business Affairs (DCBA)
DCBA's Foreclosure Prevention Program provides free services to property owners, including one-on-one foreclosure counseling, financial coaching and budgeting, and help navigating assistance programs.
- Website: dcba.lacounty.gov/foreclosure-prevention
Legal Aid Foundation of Los Angeles (LAFLA)
Provides free legal assistance to low-income LA County residents.
- Phone: (800) 399-4529
- Website: lafla.org
Neighborhood Legal Services of Los Angeles County
Free legal help for low-income residents in the San Fernando, San Gabriel, and Antelope Valleys.
- Phone: (800) 433-6251
LA County Mortgage Relief Program 2.0
Administered through Neighborhood Housing Services, this program provides up to $30,000 for eligible property owners to cover missed mortgage payments. Eligibility includes owner-occupied properties and income up to 80% of Area Median Income.
Homeowner's Property Tax Exemption
All California homeowners are entitled to a Homeowner's Exemption of $7,000 off the assessed value of their primary residence. Apply through the LA County Assessor's Office.
Emergency Steps If You Are Facing a Tax Default Sale
- Check your property's tax status immediately at ttc.lacounty.gov. Determine whether your property is tax-defaulted and how many years of delinquent taxes are outstanding.
- Contact the TTC at (213) 974-2111 to discuss payment plan options, including the five-year installment plan under Revenue and Taxation Code Section 4216.
- If you are 62 or older, blind, or disabled, apply for the Property Tax Postponement Program through the State Controller at (800) 952-5661.
- Make sure you have the Homeowner's Exemption. Apply through the LA County Assessor at (213) 974-3211.
- Contact DCBA's Foreclosure Prevention Program for free counseling.
- Call LAFLA at (800) 399-4529 for free legal assistance.
- Remember: There is no redemption after the sale in California. Act before the auction date.
- Visit auctionblock.org/get-help for additional resources and guidance.
Know Your Rights
- You have the right to redeem your property at any time during the redemption period (five years for residential property) by paying all delinquent taxes, penalties, and costs.
- You have the right to enter into a five-year installment payment plan for delinquent taxes.
- You have the right to receive notice by registered mail before your property is sold.
- You have the right to at least 45 days between notification and the sale.
- You have the right to contest your property's assessed value through the Assessment Appeals Board.
Disclaimer
This guide is provided for informational purposes only and does not constitute legal advice. AuctionBlock.org is a mission-driven company that has not yet served its first family. Tax default sale laws, exemption thresholds, and program eligibility change frequently. Verify all deadlines and eligibility requirements directly with the agencies listed above. If your property is at risk of a tax default sale, consult a licensed attorney in California.
Need help? Visit auctionblock.org/get-help to connect with resources in your area.