Delinquent Property Taxes

Unpaid property taxes accrue penalties and interest quickly under California law. Once a property reaches tax-defaulted status with the county, the redemption timeline is limited, and if a tax deed sale occurs, the homeowner loses the property and typically receives nothing. Selling before that point, even under pressure, is almost always the better financial outcome.

I can help owners in tax default understand exactly where they stand, what proceeds they can realistically expect, and how to move quickly without leaving money on the table.

Pre Foreclosure and Notices of Default

A Notice of Default (NOD) begins a formal foreclosure timeline in California. Timelines from NOD to trustee’s sale can vary. Selling during that window, called a “pre-foreclosure” sale,  preserves your credit far better than a completed foreclosure and, in most cases, allows you to walk away with net proceeds.

I have the background to work alongside your existing advisors and help you move efficiently within that window.

Divorce

The family home is often the largest asset in a divorce and can be the most emotionally charged. Selling a jointly owned property during or after divorce proceedings involves coordination with attorneys, potential court approval, and the practical challenge of two parties who may not agree on strategy or timing. I work professionally and discreetly with both parties, or if counsel advises, on behalf of one, to manage the sale without adding friction to an already difficult process.

Job Loss or Income Disruption

When income drops and mortgage payments become unsustainable, time is the critical variable. Selling before missing payments protects your credit and your options. Selling after several missed payments, but before foreclosure, may still produce a positive outcome. I help homeowners evaluate their position honestly and move at a no-pressure pace that makes sense for the seller.

Inherited Property With Complications

An inherited property can come with deferred maintenance, existing tenants, title issues, family disagreements, or outstanding debts against the estate.

My background in difficult deal structuring and process can be helpful here, and I work with heirs and estate representatives to bring complicated inherited properties to a clean close.

Properties With Liens

Mechanic’s liens, judgment liens, HOA liens, and IRS liens can all complicate a sale, but are manageable. In most cases, liens are paid at closing from sale proceeds. I coordinate with title, escrow, and, where appropriate, legal counsel to ensure lien payoffs are handled correctly so the transaction closes cleanly.

Struggling Rental Property

A rental property with problem tenants, deferred maintenance, or a negative cash flow position is not automatically a loss. Depending on your basis, depreciation history, and equity position, the right sale strategy, including a potential 1031 exchange into a better-performing asset, may produce a strong financial outcome. I can help you evaluate the full picture to decide on the best course of action.

Can I sell if I'm behind on my mortgage? Yes in most cases. As long as a trustee’s sale has not already occurred, you can sell. The outstanding mortgage balance is paid at closing from sale proceeds. If you owe more than the property is worth, a short sale may be an option, which requires lender approval. The earlier you act, the more options you have.

What happens to delinquent property taxes at closing? Delinquent taxes, penalties, and interest are typically paid from sale proceeds at closing through escrow. You do not need to pay them out of pocket in advance. The key is acting before the county reaches a tax deed sale, at which point you lose the property entirely.

Will selling hurt my credit less than foreclosure? Significantly less. A completed foreclosure can remain on your credit report for seven years and severely limits future borrowing. A pre-foreclosure sale, or even a short sale, is reported differently and typically allows faster credit recovery. The difference in long-term financial impact is substantial.

Do I need an attorney? Not necessarily, but in some situations, particularly divorce, probate, or significant lien complexity, having an attorney involved is strongly advisable. I can work alongside your existing legal counsel or help you identify when legal representation would be beneficial.

What if I owe more than the house is worth? A short sale may be the right path. This requires your lender’s approval to accept less than the full mortgage balance, to which they might agree to expedite recoverable funds. It is a more complex transaction and takes longer, but it is far preferable to foreclosure for most sellers. 

Are my conversations with you confidential? Yes, I treat all of my conversations with clients as confidential.