It’s that time again. Property tax is delinquent if not paid by today, December 10th.
In Real Estate Principles class, we had a saying called, “No Darn Fooling Around” to memorize the property tax calendar.
Each letter stood for a milestone or deadline:
‘N’ stands for November. The 1st installment is due by November 1st.
‘D’ stands for December. The 1st installment becomes delinquent if not postmarked by December 10th.
‘F’ stands for February. The 2nd installment is due by February 1st.
‘A’ stands for April. The 2nd installment becomes delinquent if not postmarked by April 10th.
Taxes are paid in arrears. The 1st half of the tax year runs from July 1st to December 31st. The 2nd half runs from January 1st to June 30th.
If your taxes are included in your mortgage bill, or “impounded”, you don’t have to worry about the tax bills unless you’ve received a supplemental tax bill.
If you can afford to make a payment, you don’t have to mail a check. You can visit http://tax.ocgov.com/tcweb/search_page.asp and enter your address. You can pay by check (no charge) or by using your debit card ($3.95 fee).
I can’t pay the full amount. What are my options?
Pay by credit card. In Orange County, they will add a 2.3% “convenience fee”. This will allow you to make payments without being assessed a late fee.
Pay with a promotional check issued by your credit card company. These are usually thrown away by most homeowners. They’re actual checks that can be used toward anything (except the credit card itself) for a promotional rate. Credit card companies want their customers to transfer balances with these checks. There’s usually a one-time fee (about 4%) and the promotional period usually lasts at least 1 year at very low interest rates or no interest at all (0%).
Pay late or don’t pay it at all. Of course, you need to know the penalty and consequences.
What usually happens if I don’t pay by the “delinquent” date?
1. You’ll receive a notice from your servicer of your mortgage. Similar to homeowner’s insurance, some servicers will increase your monthly payment to include taxes.
2. You’ll continue to receive notices from the County Assessor. The tax due will be higher after penalties are added to your balance.
3. If no payment is received for a prolonged period of time, the Assessor can start foreclosure on your home. With today’s backlog of delinquencies, this likely will not start until at least 1 year of being delinquent. It will be important to know the foreclosure timetable.
I believe my assessed value is too high. Is it possible to appeal my assessed value?
For those who live in Orange County, call (714) 834-2727 and ask to speak to an appraiser. If you feel that that your value is too high, you can file an appeal. The filing period for appeals runs from July 2nd to September 15th. They will be able to guide you through the appeal process.
We plan on selling our home in 2013. How does this affect the taxes owed?
For those who have an impound/escrow account that includes taxes in the monthly payment, you will need to know what your running balance is. Taxes will be prorated until the day of closing. For most homeowners, they will have enough in the impound account where they would receive a credit toward closing.
For those paying separately and plan on paying your 2nd installment (due February 1st), it would be a good idea to receive a stamped proof of payment at the county office and give it to your esccrow company handling the sale of your home. This will eliminate any hassle or double payment that may be required by title.
If you have NOT paid your 2nd installment and will be closing before April 10th, you can pay your taxes through the escrow company handling the sale of your home. After April 10th, you can still pay through escrow, but a late fee will be added.
For those selling their home after June 30th, you will have to pay prorated taxes through your closing date through escrow.
Confusing enough? I hope this simplifies things:
Homeowners with impound accounts – unless the balance is insufficient, you will likely have a small CREDIT through escrow.
Paid separately and sold home before June 30th – you will likely receive a CREDIT through escrow.
Paid separately and sold home after June 30th – you will likely OWE taxes.
Call me with any questions.
