San Diego Property Tax Defaults Declining

The San Diego treasurer / tax collector reported yesterday that fewer San Diego residents are defaulting on their property taxes. As of July 1st, 3.6 % of property owners were in default, compared with 3.7 % last year, 2.7 % in ‘07, and 1.9 % in ‘06. The office is mailing out just over 47,000 notices of default, compared to over 50,000 a year ago.

Economists say that the trend is encouraging, if it continues, but that a key factor is that when lenders foreclose they must pay delinquent tax-debt before listing the property.

Owners who fail to pay taxes on time are hit with a 10 % surcharge and a 1.5 % monthly penalty. Collectively, San Diego’s delinquent owners owe nearly $290 million, compared with $270 million at the same time last year