Step 1: Understand Your Situation – Don’t Panic, Get a Plan

The first notice you receive, often called a “Notice of Power to Sell,” is alarming, but it is not an eviction notice. It’s a legal warning that the clock has started. In California, homeowners have a critical five-year redemption period from the date the property becomes “tax-defaulted” (July 1st after the first missed full-year payment).

Your Most Important Task: Find your exact redemption deadline. This is the date by which you must pay the full amount owed to stop the county from selling your home at auction. Don’t guess—contact your county’s Tax Collector’s office to confirm this date. Knowing your timeline is the first step to taking back control.

Step 2: Know Your Options – The Pathways to Resolution

California law provides several powerful, legitimate pathways to resolve tax delinquency. It’s not about secret loopholes; it’s about knowing which program fits your situation.

• The Installment Plan of Redemption (The “Five-Pay Plan”): This is often the best first step. It allows you to pay off your delinquent taxes over five years. Initiating a plan immediately pauses the county’s power to sell your property. You must make an initial payment (typically 20% of the delinquent amount) and stay current on your future property taxes, but it provides immediate relief and breathing room.
• Penalty Abatement/Cancellation: Were your late payments due to circumstances beyond your control? The law allows for penalties to be waived for “reasonable cause,” such as a serious medical emergency or a documented error by a third party (like a bank). This requires a formal application with strong, verifiable evidence, but can save you thousands.
• Assessment Appeal (Prop 8 Review): Do you believe your property’s assessed value is too high for the current market? You can file an appeal with the county. If successful, this can lower your property’s assessed value, which in turn lowers your current and future tax bills, making them more manageable.

Step 3: Explore Financial Assistance Programs

There are government programs designed to provide direct financial help to homeowners in need.

• California Mortgage Relief Program (HAF): This is a critical resource. The program provides grants (not loans that need to be repaid) of up to $20,000 specifically to cover delinquent property tax payments for homeowners who faced a COVID-19-related financial hardship. You can self-certify the hardship, and income limits are generous.
• Property Tax Postponement (PTP) Program: If you are a senior (62+), blind, or disabled and meet certain income and equity requirements, this state-run program allows you to defer payment of your current-year property taxes. The state pays the taxes for you, placing a lien on the property that only becomes due when you sell the home or no longer live in it.

Step 4: Consider a Direct Sale – Protecting Your Hard-Earned Equity

If the options above aren’t feasible for your situation, waiting for the auction is the worst possible outcome. At a tax auction, your property will be sold to the highest bidder, and you could lose your home and all the equity you’ve built over the years.

There is a better way.

A direct, as-is cash sale to a professional and compassionate buyer like Way Ya Go Development can be the smartest strategic decision.

• Immediate Resolution: We can provide a fair cash offer to purchase your home quickly, often in a matter of days.
• Pay Off the Debt: The proceeds from the sale are used to completely pay off the tax collector, instantly stopping the sale process and ending the accrual of penalties.
• Keep Your Equity: Any money left over after paying the taxes and any other liens goes directly to you. This could be a substantial amount of cash that you would otherwise forfeit at auction.
• No Repairs, No Hassles: We buy your property as-is. You don’t need to worry about repairs, cleaning, or showings.

Step 5: Take Action Now – Contact a Trusted Professional

Time is your most critical asset. The deadlines in the property tax process are absolute. The longer you wait, the more penalties accrue, and the fewer options you have.

Your first step should be to get a confidential, no-obligation consultation to review your unique situation. At Way Ya Go Development, we will listen to your story, help you understand the options detailed in this guide, and outline the best paths forward for you—even if that path doesn’t involve us.

Turn panic into peace of mind. Take the first step today.