Delinquent on Your Mortgage or Property Taxes in California? What to Do Before Fees, Default or Foreclosure Get Worse
This guide is for California homeowners who are behind on a mortgage payment, property taxes, escrow shortage, supplemental tax bill, reverse mortgage obligation or tax-defaulted bill. It separates mortgage delinquency from county property-tax delinquency, shows the real California dates, explains servicer options, and gives you a practical action plan before penalties, foreclosure notices or tax sale risk grow.
First answer: what kind of delinquency do you actually have?
Do not treat every letter as the same emergency. A missed mortgage payment, missed property tax installment, escrow shortage, supplemental tax bill and tax-defaulted notice are different problems with different offices.
Fast action board
- 1Mortgage payment late? Call your mortgage servicer immediately and ask for loss mitigation, repayment, forbearance, deferral or loan modification options.
- 2County property tax unpaid? Search your county Treasurer-Tax Collector account by APN/parcel number and verify which installment, year and penalty are unpaid.
- 3Escrow problem? Compare county tax payment history with your mortgage escrow statement. Send a written request to your servicer if escrow failed to pay.
- 4Supplemental tax bill? Do not assume your lender paid it. California county guidance commonly says supplemental tax bills are mailed to the owner and may not go to the lender.
- 5Tax-defaulted notice? Call the county Tax Collector’s redemption/default section. Ask for payoff, installment plan of redemption, sale-risk date and current-tax requirements.
Official help shortcuts
Use this checklist before you call anyone
Have facts ready. It turns a stressful call into a specific request instead of a long transfer loop.
Documents to pull
Mortgage statement, late notice, Notice of Default if any, county tax bill, APN/parcel number, escrow statement, supplemental tax bill, payment receipts and hardship proof.
Numbers to write down
Total mortgage arrears, monthly payment, escrow shortage, unpaid tax year/installment, tax penalties, current-tax balance, sale date if any and household income.
Questions to ask
“What options stop foreclosure review?” “Is my loss-mitigation application complete?” “Who pays the supplemental tax bill?” “Can I start a redemption plan?”
| Notice / Problem | Meaning | First Call | Ask For |
|---|---|---|---|
| Missed mortgage payment | Loan delinquency | Mortgage servicer | Loss mitigation, repayment, forbearance, deferral or modification. |
| Escrow shortage | Servicer expects higher tax/insurance escrow | Mortgage servicer | Escrow analysis, shortage spread, tax-payment proof. |
| County tax bill unpaid | Property taxes not posted | County Treasurer-Tax Collector | Current payoff, penalties, tax-default status. |
| Supplemental tax bill | Extra tax after purchase/new construction/reassessment | County Tax Collector + servicer | Who must pay, due date, whether escrow will cover it. |
| Notice of Default | Foreclosure process has started | Servicer + HUD counselor/legal aid | Complete application review, sale timeline, reinstatement quote. |
| Tax-defaulted / power-to-sell notice | Prior-year property taxes are seriously delinquent | County Tax Collector redemption section | Redemption payoff, installment plan, sale-risk date. |
California property tax delinquency timeline homeowners should know
Most California homeowners deal with secured property taxes in two installments. Missing a date creates penalties fast, but tax sale risk usually happens much later after tax default.
Nov. 1
First installment of secured property taxes is due.
Dec. 10
First installment must be paid by 5 p.m. or close of business to avoid late penalty.
Feb. 1
Second installment of secured property taxes is due.
Apr. 10
Second installment must be paid by 5 p.m. or close of business to avoid late penalty.
| Stage | What It Means | Practical Action |
|---|---|---|
| Bill mailed / available online | County tax bill is issued once a year for annual secured taxes | Search by APN if the paper bill does not arrive. |
| Installment delinquent | 10% penalty normally attaches after Dec. 10 or Apr. 10 deadlines | Pay immediately or ask the county about penalty cancellation only if a legal basis exists. |
| June 30 unpaid | Unpaid secured taxes at fiscal-year end can become tax-defaulted | Call the county before June 30 if possible; after default, ask for redemption amount. |
| Tax-defaulted | Prior-year delinquent taxes now carry added penalties, costs, fees and redemption interest | Ask about an installment plan of redemption and current-year tax requirement. |
| Power to sell | California law generally allows sale of most residential tax-defaulted property after five years or more | Do not wait for auction notice; redeem or start allowed plan before sale power blocks options. |
What to ask your mortgage servicer before foreclosure gets worse
California homeowners facing mortgage foreclosure have important rights, but rights work best when you respond early, keep proof and submit a complete application.
Loan modification
Permanent change to loan terms to make payment more manageable. May involve rate, term, balance treatment or other investor-specific rules.
Repayment plan
Past-due amount is repaid over time along with regular payments. Best when hardship is temporary and income has resumed.
Forbearance
Payment is reduced or paused for a period. You still need an exit plan before forbearance ends.
Deferral
Some missed amounts move to the end of the loan or another non-interest-bearing balance, depending on loan type and servicer rules.
Reinstatement
Pay all past-due amounts, fees and costs by a set date. Ask for a written reinstatement quote.
Exit options
If keeping the home is not realistic, ask about short sale, deed in lieu, sale timeline and how to protect equity.
1
Call the servicer and ask for loss mitigation
Use those exact words.
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Say: “I am behind or about to fall behind. I need loss mitigation options and a complete application checklist.” Ask for the deadline, missing documents, single point of contact, and whether a foreclosure sale date exists.
2
Submit a complete application
Incomplete applications do not protect you the same way.
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Include hardship letter, income proof, bank statements, tax returns if requested, expense worksheet, divorce/death/job-loss documents if relevant, and property-tax/escrow proof if the tax issue caused the delinquency.
3
Get everything in writing
Phone promises are hard to prove later.
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After every call, write the date, time, representative name, ID number, summary and next deadline. Upload through the servicer portal when possible and save screenshots or confirmation numbers.
If your mortgage company was supposed to pay the taxes
Escrow problems are common in California because annual taxes, supplemental bills, reassessments and servicer transfers can create gaps. Do not assume the mortgage company paid every bill.
| Escrow Situation | What to Check | What to Ask the Servicer |
|---|---|---|
| Annual tax bill unpaid | County tax payment history and escrow disbursement log | “Why was the county tax not paid and when will you correct it?” |
| Supplemental tax bill unpaid | Whether lender was billed or bill went only to owner | “Will escrow pay this supplemental bill or am I responsible?” |
| Servicer transfer | Old and new servicer escrow balances and payment history | “Did the tax-payment responsibility transfer correctly?” |
| Escrow shortage | Escrow analysis, new tax bill, insurance premium and projected shortage | “Can the shortage be spread over 12 months or corrected if the estimate is wrong?” |
| Wrong APN/address | APN on county tax record vs servicer escrow record | “Please confirm the exact APN you paid and correct any misapplied payment.” |
1
Download county tax proof
Use county facts, not guesses.
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Search your county Treasurer-Tax Collector portal by APN. Download the bill and payment history showing whether taxes are unpaid, paid late, paid by whom, or tax-defaulted.
2
Send a written escrow dispute
Keep it specific and document-based.
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Upload or mail a written request to the servicer with APN, address, tax year, county bill, county payment history and escrow statement. Ask for correction, fee review and written confirmation.
3
Do not ignore the county deadline
Escrow disputes can take time.
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If a tax deadline is close, ask both the county and servicer what prevents penalties. You may need legal or housing-counselor guidance before deciding whether to pay directly and seek reimbursement.
California tax-defaulted property: what it means and what to do
“Tax defaulted” usually means prior-year secured property taxes were not paid by the end of the fiscal year. This is more serious than one late installment.
Default does not mean immediate sale
Most residential tax-defaulted property is not immediately sold. California law generally gives the tax collector power to sell after five years or more of tax default.
Costs keep growing
Tax-defaulted accounts can accrue penalties, costs, fees and redemption interest. County tax collectors generally cannot simply waive statutory charges without a legal basis.
Redemption may still be available
You may be able to redeem by paying the full redemption amount before sale, or ask about an installment plan of redemption before the property becomes ineligible.
Current taxes still matter
Many redemption plans require current taxes to stay paid on time while you pay older defaulted taxes.
1
Call the county redemption/default section
Ask for the exact redemption quote.
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Ask: “What is the total redemption amount today, including penalties, costs, fees and interest? Is the property subject to power to sell? Is there a scheduled tax sale?”
2
Ask about installment plan of redemption
Do not wait until sale power blocks the plan.
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Some counties allow a five-year redemption plan for tax-defaulted bills. Expect rules like a down payment, annual payments, interest on unpaid balance and keeping current taxes paid.
3
Check mortgage impact
Mortgage lenders care about tax liens.
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If the home has a mortgage, notify the servicer and ask whether it advanced taxes, opened escrow, force-placed escrow, or added a corporate advance. Get the new payment amount in writing.
California Property Tax Postponement: who should check it
The State Controller’s Property Tax Postponement Program can help qualifying homeowners defer current-year property taxes, but it is not a grant and it creates a lien that must be repaid.
Who it is for
Homeowners who are seniors, blind or disabled and meet program rules.
Property type
Principal residence only; additional eligibility requirements apply.
Equity / income
The State Controller’s page lists criteria including at least 40% equity and an annual household income limit.
Repayment
Postponed taxes are secured by a lien and must eventually be repaid.
Avoid foreclosure rescue and loan modification scams
When homeowners are scared, scammers use urgency. California DOJ warns against upfront-fee loan-modification schemes, title-transfer scams, fake government programs and guarantees to stop foreclosure.
| Red Flag | Why It Is Dangerous | Safer Action |
|---|---|---|
| “Pay us upfront to stop foreclosure” | California law prohibits upfront loan-modification fees before services are performed | Use your servicer, HUD counselor, legal aid or verified attorney. |
| “Sign title over and stay as renter” | You may lose ownership and still face eviction | Do not transfer title without independent legal advice. |
| “Pay your mortgage to us” | Scammer may keep the money | Pay only your lender/servicer or county tax office. |
| “Guaranteed modification” | Only the servicer/lender can approve foreclosure-prevention options | Ask for written servicer terms and application status. |
| “Forensic loan audit will save the home” | Often used in rescue scams and may not stop foreclosure | Talk to legal aid or a verified attorney if you suspect violations. |
Official California mortgage and property tax help links
Use these for live actions. The article already explains what each link is for so readers do not face a link-only experience.
California mortgage and property tax delinquency FAQs
Short answers for homeowners who are behind, confused by escrow, worried about foreclosure, or trying to stop a tax default from becoming a tax sale.
QWhat should I do first if I am delinquent on mortgage and property taxes?▾
Separate the issue: mortgage payment, county property tax, escrow shortage, supplemental bill or tax-defaulted bill. Call the servicer and county tax collector the same day, then save proof of every document and payment.
QWhen are California property taxes delinquent?▾
The first secured installment is due November 1 and delinquent after December 10. The second is due February 1 and delinquent after April 10, subject to weekend/holiday rules.
QWhat penalty applies if I miss the property tax date?▾
Late secured installments normally receive a 10% penalty. The second installment may also include an administrative charge. If taxes remain unpaid by June 30, tax-default charges can grow further.
QCan California sell my home for unpaid property taxes?▾
Yes, but usually not immediately. California law generally gives the tax collector power to sell most residential tax-defaulted property after five years or more of tax default if it is not redeemed.
QWhat is an installment plan of redemption?▾
It is a county tax-collector payment plan for tax-defaulted property. County rules vary, but plans often require a down payment, annual payments, current taxes kept current and interest on the unpaid redemption amount.
QCan my mortgage servicer start foreclosure right away?▾
No. California and federal rules include protections. Your servicer generally must try to discuss foreclosure-prevention options before starting foreclosure, and federal guidance generally bars a first foreclosure notice or filing until the loan is more than 120 days delinquent.
QWhat mortgage options should I ask for?▾
Ask about repayment plan, forbearance, deferral, loan modification, reinstatement, partial claim if your loan allows it, short sale and deed in lieu. Ask what documents are needed for a complete loss-mitigation review.
QWhat if my escrow company failed to pay property taxes?▾
Download county tax payment history and your escrow statement. Send a written request to the servicer asking it to investigate, correct the tax issue, address penalties if appropriate and confirm the resolution in writing.
QWho can use California Property Tax Postponement?▾
Qualifying senior, blind or disabled homeowners may defer current-year property taxes on a principal residence if they meet State Controller criteria, including equity and income rules. It creates a lien that must be repaid.
QIs PropertyTaxUSA.org official legal advice?▾
No. PropertyTaxUSA.org is an independent informational guide. Confirm balances, redemption amounts, foreclosure dates, payment plan eligibility and legal rights with official county offices, your servicer, HUD counselors or an attorney.
Bottom line
If you are delinquent on your mortgage or property taxes in California, act in two tracks: call the mortgage servicer for loss mitigation, and check the county Treasurer-Tax Collector record for unpaid taxes. If escrow caused the problem, document it in writing. If taxes are already tax-defaulted, ask the county about redemption and payment-plan options before sale power becomes the bigger risk.
Independent guide notice: This page is not a county Tax Collector, mortgage servicer, attorney, HUD counselor, court, State Controller office or payment processor. Official sources control current deadlines, payoff amounts, penalties, redemption rules, foreclosure notices, sale dates and legal rights.