Notice of Tax Default? Here’s What to Do Next
It can be scary and stressful to receive a notice of tax default. Here’s what to do next …
First of all, yes, this is serious. But understand that you have options. And we’re here to help.
California has a five-year “waiting period” between Notice of Tax Default and Notice of Tax Sale. This sounds reassuring, but you never should wait the entire five years before dealing with it.
The longer you wait, the more penalties and fees add up. And that just increases what you owe to get out of default. It increases your stress level, too.
So, you want to take care of this as soon as possible. We get it … if you had the cash to pay the property taxes, you wouldn’t have received the Notice of Tax Default in the first place. But you can’t just ignore the problem. It won’t go away until you pay what you owe.
What Do You Owe?
You’ll need to contact the Tax Collector in your county to get an accurate accounting of what you owe. In Fresno County, for example, the amount needed to clear the tax default is the total of the following:
- Total amount of unpaid taxes
- 10% penalty on each unpaid installment
- $10 fee for each late or unpaid second installment
- 1.5% monthly penalties on the unpaid tax
- $15 redemption fees
- Any additional fees if the Tax Collector has begun the sale process
Make a Plan to Get the Money
Once you know how much money you need, you can consider your options and make a plan to get the money.
Consider these options:
- Sell your car, boat, RV, etc.
- Borrow from a relative
- Cash out or “borrow” from your retirement accounts
- Sell your house
Installment Plan Option
Requesting an installment plan of redemption is another option. However, there are some strict requirements you must agree to. Most notably, you will be required to pay current year taxes (including penalties and fees) in full. You will pay an initial setup fee. And you’ll have to pay 20% of the defaulted amount each year. Also, the 1.5% monthly penalties continue to add up on the unpaid taxes.
Seek Professional Help
Do not succumb to analysis paralysis. The clock is ticking and every day you delay is costing you more money as your penalties add up.
Seek professional help from someone who has helped others go through this process. We have been trusted to help many people just like you. And we’re here to help you, too.
Call (559) 321-0905 today to see how we can best help you.
