Even if you have paid off your mortgage, you still have to keep on top of property taxes. Most people who have a mortgage do not pay their property taxes directly. Instead, a little of each mortgage payment is put into an escrow account, and the lender pays the taxes from the funds in the account. Thus, when many older people pay off a mortgage, and begin having to pay property taxes directly, they are not used to it, and they may miss their payments.
If a homeowner does not pay property taxes, the government can put a tax lien on the property. It may then sell the lien to an investor who is entitled to collect the debt along with penalties and interest. If the homeowner cannot pay, the investor can foreclose on the house and then potentially sell it for a large profit. Unfortunately, low-income elderly people are often the victims in these schemes. It does not matter how small the tax bill is; the government can get a lien on even the smallest tax bill.
If you do not remember receiving a property tax bill this month or last month, check with your County Assessor’s office to make sure you do not owe any taxes. If you cannot afford to pay property taxes, contact the Los Angeles County Assessor’s office to discuss the programs they have to help elderly homeowners with payments. If you receive a tax lien notice or notice of foreclosure, contact your attorney immediately.
Ms. MacDonald’s practice is limited to Estate Planning, Probate, Conservatorships, Elder Law and Trust Administration. Ms. MacDonald maintains her practice in the Santa Clarita Valley at 25115 Avenue Stanford, Suite B-124 in Valencia, California 91355. She can be reached at 661-294-6464.