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Consequences of Unpaid Property Taxes in Los Angeles County

Consequences of Unpaid Property Taxes in Los Angeles County

I'm Attorney Omar Zambrano, and I'm here to discuss a critical issue that affects many property owners in Los Angeles County: the consequences of unpaid property taxes.

As a legal professional with years of experience in property law, I understand the complexities and potential pitfalls surrounding this topic. If you're facing difficulties with property taxes, remember that you don't have to navigate this challenging situation alone. I offer a free consultation at 626-338-5505 to help you understand your options.

Late payment penalties

The first consequence of unpaid property taxes is the imposition of penalties. In Los Angeles County, if you do not pay your property taxes by the due date, a 10% penalty is added to the unpaid amount. If the taxes remain unpaid by the start of the next fiscal year (July 1st), an additional penalty of 1.5% per month begins to accrue on the unpaid balance, including the initial 10% penalty.

Tax liens

If the property taxes remain unpaid for a certain period, the county will place a tax lien on the property. A tax lien is a legal claim against a property for unpaid taxes. It gives the county the right to receive payment for the debt from the proceeds if the property is sold. The lien remains in place until the taxes, along with any penalties and interest, are paid in full.

Tax auctions

If the taxes, penalties, and interest remain unpaid, the county can eventually sell the property at a tax auction to recover the unpaid taxes. In Los Angeles County, this can occur if the property taxes are unpaid for five years. The property is sold to the highest bidder at the auction and the proceeds are used to pay off the unpaid taxes.

Loss of property

The most severe consequence of unpaid property taxes is the loss of the property. If the property is sold at a tax auction, the original owner loses all rights to the property. The new owner receives a tax deed to the property and can take possession of it.

Impact on credit score

Unpaid property taxes can also negatively impact the property owner's credit score. If the county records a tax lien against the property, this information can be picked up by credit reporting agencies and can significantly lower the property owner's credit score.

Conclusion

Failing to pay property taxes in Los Angeles County can have severe consequences, including penalties, tax liens, tax auctions, loss of property, and a negative impact on credit score. As a property owner, it's crucial to understand these potential outcomes and take proactive steps to avoid them. If you're facing issues with unpaid property taxes, don't hesitate to reach out for a free consultation at 626-338-5505. As an experienced attorney, I can provide you with the guidance and support you need to navigate this complex situation.

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