California Counties
Real Estate Auction in California
The real estate auction process in California offers a unique opportunity for buyers to acquire properties through public auctions. Whether it’s tax deeds, foreclosure auctions, or homeowners association (HOA) foreclosures, California presents a dynamic landscape for real estate auctions. Let’s delve into the details of this process, highlighting key aspects that make California’s auction market distinctive.
In California, the real estate auction process operates under specific regulations and practices. Here are some important points to note:
In California, the real estate auction process operates under specific regulations and practices. Here are some important points to note:
Tax Deed Sales
California follows a tax deed system, which means that you cannot purchase tax liens in the state. Unlike tax lien states, where investors pay delinquent taxes on behalf of homeowners and earn interest, California sells tax deeds on properties with taxes that have been delinquent for five or more years. Additionally, properties are eligible for tax deed sales if the owner has not enrolled in the county’s Five Year Payment plan
Deed of Trust
When borrowers take out a loan to purchase a house in California, lenders typically secure the debt using a deed of trust rather than a mortgage. A deed of trust transfers the legal interest in the property from the lendee (homeowner) to the lender or trustee, providing security for the loan.
Tax Defaulted Land Sales
Property becomes tax-defaulted land if the property taxes remain unpaid at 12:01 a.m. on July 1st. Property that has become tax-defaulted after five years (or three years in the case of property that is also subject to a nuisance abatement lien) becomes subject to the county tax collector’s power to sell in order to satisfy the defaulted property taxes. The county tax collector must attempt to sell the property within four years of becoming subject to sale. The county tax collector may offer the property for sale at a public auction, a sealed bid sale, or a negotiated sale to a public agency or qualified nonprofit organization.
Foreclosures in California
Homeowners associations (HOAs) in California have the authority to foreclose on homes if owners fall behind on dues. California is a non-judicial foreclosure state, meaning that the foreclosure process is conducted outside of the court system. In the case of tax delinquencies, the county tax collector oversees the auction, where the property is sold to the highest bidder.
Here is an overview of the foreclosure process in California:
1. Notice of Default (NOD): When a borrower defaults on their mortgage payments, the lender initiates the foreclosure process by filing a Notice of Default (NOD) with the county recorder’s office. The NOD is also sent to the borrower by certified mail.
2. Waiting Period: After the NOD is recorded, there is a mandatory waiting period of at least 120 days before the lender can proceed with the next step. This waiting period allows the borrower an opportunity to resolve the default and bring the loan current.
3. Notice of Trustee’s Sale: If the borrower fails to cure the default within the 120-day waiting period, the lender can proceed with issuing a Notice of Trustee’s Sale. This notice is recorded with the county recorder’s office and published in a newspaper in the county where the property is located. The notice contains details about the date, time, and location of the foreclosure sale.
4. Foreclosure Sale: The foreclosure sale, also known as the trustee’s sale, is a public auction where the property is sold to the highest bidder. The sale is typically held on the property or at a designated public location. The lender or their representative (the trustee) conducts the sale and sets the opening bid, which is usually the outstanding loan balance plus any accrued interest and fees.
5. Trustee’s Deed: If there is a successful bidder at the foreclosure sale, they will receive a trustee’s deed upon payment of the purchase price. The trustee’s deed transfers ownership of the property to the new owner.
6. Redemption Period: California does not provide a statutory right of redemption for the borrower after the foreclosure sale. Once the foreclosure sale is completed, the borrower typically loses their ownership rights to the property.
It’s important to note that the foreclosure process in California can be complex, and it is advisable for borrowers facing foreclosure to seek legal counsel or consult with a foreclosure specialist to understand their rights and options.
Here is an overview of the foreclosure process in California:
1. Notice of Default (NOD): When a borrower defaults on their mortgage payments, the lender initiates the foreclosure process by filing a Notice of Default (NOD) with the county recorder’s office. The NOD is also sent to the borrower by certified mail.
2. Waiting Period: After the NOD is recorded, there is a mandatory waiting period of at least 120 days before the lender can proceed with the next step. This waiting period allows the borrower an opportunity to resolve the default and bring the loan current.
3. Notice of Trustee’s Sale: If the borrower fails to cure the default within the 120-day waiting period, the lender can proceed with issuing a Notice of Trustee’s Sale. This notice is recorded with the county recorder’s office and published in a newspaper in the county where the property is located. The notice contains details about the date, time, and location of the foreclosure sale.
4. Foreclosure Sale: The foreclosure sale, also known as the trustee’s sale, is a public auction where the property is sold to the highest bidder. The sale is typically held on the property or at a designated public location. The lender or their representative (the trustee) conducts the sale and sets the opening bid, which is usually the outstanding loan balance plus any accrued interest and fees.
5. Trustee’s Deed: If there is a successful bidder at the foreclosure sale, they will receive a trustee’s deed upon payment of the purchase price. The trustee’s deed transfers ownership of the property to the new owner.
6. Redemption Period: California does not provide a statutory right of redemption for the borrower after the foreclosure sale. Once the foreclosure sale is completed, the borrower typically loses their ownership rights to the property.
It’s important to note that the foreclosure process in California can be complex, and it is advisable for borrowers facing foreclosure to seek legal counsel or consult with a foreclosure specialist to understand their rights and options.
Public Auctions
Public auctions are the most common way of selling tax-defaulted property. The auction is conducted by the county tax collector, and the property is sold to the highest bidder.
Pursuant to California Revenue and Taxation Code (RTC) Section 3700.5, the county tax collectors are required to notify the State Controller’s Office “not less than 45 days nor more than 120 days before the proposed sale.” Additionally, RTC Section 3702 requires the tax collector to publish the intended sale three times in a newspaper of general circulation within the county, at least three weeks prior to the tax sale.
Pursuant to California Revenue and Taxation Code (RTC) Section 3700.5, the county tax collectors are required to notify the State Controller’s Office “not less than 45 days nor more than 120 days before the proposed sale.” Additionally, RTC Section 3702 requires the tax collector to publish the intended sale three times in a newspaper of general circulation within the county, at least three weeks prior to the tax sale.
| FAQ | Answer |
|---|---|
| Purpose of Chapter 7 Tax Sale | Collect unpaid property taxes and motivate the assessee to redeem the property. |
| Authority to sell at public auction or sealed bid | Tax collector has the authority under California statute (Rev. & Tax Code, §3691). Written approval from the Board of Supervisors is required (Rev. & Tax Code, §3694). |
| Property becoming subject to the power of sale | Tax-defaulted for five years or more (or three years for nonresidential commercial property). Nuisance abatement lien holders can request sale after three years (Rev. & Tax Code §3691). A public agency or nonprofit can bring residential property to auction after three years (Rev. & Tax Code, §3692.4). |
| Eligibility to purchase at public auction | Generally, anyone aged 18 and over who registers and provides a deposit, with a few exceptions (Gov. Code, §1090 and Rev. & Tax Code, §3698.5(d)). |
| Availability of property list for tax sale | Viewable on the tax collector's website, free of charge. |
| Types of Chapter 7 Tax Sales | In-person (public space) or virtual (internet auction), as decided by the tax collector. |
| Sealed bid | Offered for tax-defaulted properties rendered unusable. Contiguous property owners or holders of easements can participate. The highest bidder purchases the property. |
| Participation in a sealed bid | Owners of contiguous properties or holders of easements are eligible. Partial interest in oil, gas, or mineral rights requires relevant owners to bid. |
| Second highest bidder in case of non-payment | No provision for the second highest bidder to be declared the purchaser. The sale is void if the highest bidder fails to pay. |
| County's responsibility for foreclosures and evictions | No, the county does not handle foreclosure or eviction processes. |
| Inclusion of personal property in the sale | Personal property, such as mobile homes or equipment on the property, is not part of the sale unless the mobile home has a permanent foundation. |
| Transfer of liens or encumbrances to the new owner | The purchaser receives the title free of encumbrances, except for certain specified liens and rights (Rev. & Tax Code, §3712). A title search can reveal any existing liens or encumbrances. |
| Ceasing of the right to redeem a tax-defaulted property | The right to pay taxes in full and costs ceases at the close of business on the last business day before the tax sale's commencement date. |
| Properties sold at auction on an "AS IS" basis | Yes, all properties are sold "AS IS." Counties provide no guarantee regarding title, location, or condition of the properties. Prospective bidders should research each property thoroughly. |
Counties Links
Tax deed rules can vary among counties in California. Each county may have its own specific procedures and requirements for conducting tax deed sales. These variations can include the frequency of tax sales, the bidding process, redemption periods, and other related aspects of the tax deed process.
You can find details of the tax deed process of the various counties in the table below-
https://sco.ca.gov/ardtax_public_auction.html
| County | Tax Deed Auction Website |
|---|---|
| City and County of San Francisco, CA | SanFrancisco.MyTaxSale.com |
| Kern County, CA | Kern.MyTaxSale.com |
| Orange County, CA | OCTaxAuction.MyTaxSale.com |
| San Bernardino County, CA | SBCounty.MyTaxSale.com |
| San Diego County, CA | SDTTC.MyTaxSale.com |
| San Mateo County, CA | SanMateo.MyTaxSale.com |
| Solano County, CA | Solano.MyTaxSale.com |
Online Auction Resources
- Bid4Assets
- Auction.com California Residential Listings
- Xome
- ServiceLink Auction California
- Hubzu Auctions
- RealtyBid
- HUD Homes USA
- GovEase
- Williams & Williams Real Estate Auctions
- Concierge Auctions
- Bank Foreclosures Sale
- RealtyTrac California Foreclosure Auctions
- GovDeals
- Orange County, CA Property Auctions
- RealtyBid California Auctions
- Humboldt County Public Auction Information
- California State Controller’s Office Public Auctions
- US Treasury Real Property Auctions