A straight answer
Can I get a HELOC or refinance to pay overdue property taxes?
The direct answer
Yes, a HELOC or a refinance can pay overdue property taxes, and you do not need the cash up front. The back taxes are paid through escrow at closing from the loan proceeds. I arrange a HELOC that leaves your first mortgage as it is, a HELOC on a paid-off home, or a refinance that includes the tax payoff.
I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. Staying behind is not a safe place to wait. The longer the taxes go unpaid, the more the county adds, and if the delinquency runs long enough you can lose the home through a tax sale. The lender requires the taxes cleared at or before funding, and that works in your favor: paying them off clears the delinquency and keeps further penalties from building on that balance. I review your situation and work out the tax payoff as part of the closing.
You are not stuck, and a tax bill that has gone delinquent is a heavy thing to sit with. Here is what happens next. You text me, I ask a few questions about the home, the county balance and any notice, and I tell you honestly what fits. No credit pull happens from a conversation. I work with homeowners in California, Utah, Oregon and Arizona. I am not an attorney or a tax professional, and nothing here is legal or tax advice.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-18
Received a tax sale or foreclosure notice?
Confirm the current payoff and the deadline with the county tax collector right away, and ask an attorney about your redemption rights. I can review financing, but a loan application does not postpone a sale.
Behind on property taxes? Text me the property state and county, roughly what the county says you owe, what you owe on the home and whether you have received a sale or foreclosure notice. I will tell you what I need to review.
No credit pull happens from a text or a call. Texts and calls go to Zach's cell.
What happens after you text me?
Texts go straight to my cell, and I answer them myself when I'm free. I'll ask for the few details that actually matter, tell you whether the structure looks worth pursuing, and explain the next step. If I don't think the loan fits, I'll tell you that too.
A text or phone conversation does not pull your credit.
What has to be true
- Your equity covers the tax payoff and the rest of the loan. The taxes are paid from the loan at closing.
- You have a current payoff from the county tax collector. It includes the penalties and costs the county has added, not just the original bill.
- Your income and credit carry the new payment.
- The delinquency is acceptable under the loan program's own rules. Equity alone does not settle that.
- There is time before any county deadline for the loan to close and for the money to reach the county.
What the lender checks
- The county record: the tax balance, how long it has been delinquent, and whether the parcel is in a sale or foreclosure process.
- Title, not just your credit report. A property tax lien is recorded against the home, and the title report shows it. So does an HOA lien; the page on paying off an HOA lien with a HELOC or refinance covers that one.
- Lien position. In Arizona, the statute makes the property tax lien "prior and superior to all other liens and encumbrances on the property," with narrow exceptions (A.R.S. 42-17153). The tax payoff at closing lets the new loan record in the position the program requires.
- The home's value, what is already borrowed against it, your income, your credit and your payment history.
Can I get a HELOC to pay back property taxes without replacing my mortgage?
That is one route I check. A home equity line sits behind your first mortgage and leaves it as it is. Before I put the financing together, I review your equity, your income, your payment history, the tax balance and where the county is in its collection process. Whether a HELOC accepts delinquent property taxes depends on the HELOC program's own rules. The Fannie Mae refinance rules further down this page do not decide HELOC eligibility.
The page on using equity without replacing your first mortgage covers how a second loan works next to a first mortgage you want to keep.
Can the back taxes be paid at closing?
Yes, when the approved loan allows it. Title and escrow get a current payoff from the county tax collector. The taxes are paid from the loan proceeds at closing. You do not have to pay the full balance from savings first.
For loans sold to Fannie Mae, the guide says delinquent credit, "including taxes" and "tax liens," "must be paid off at or prior to closing" (Fannie Mae Selling Guide B3-6-07, dated April 5, 2023, read October 18, 2026). Other programs handle the payoff under their own rules.
Can I refinance if my property taxes are more than 60 days overdue?
Yes, as a cash-out refinance, for a loan sold to Fannie Mae. The guide says "Delinquent real estate taxes (taxes past due by more than 60 days) can also be included in the new loan amount, but if they are, an escrow account must be established, subject to applicable law or regulation" (Fannie Mae Selling Guide B2-1.3-03, dated December 10, 2025, read October 18, 2026).
The rule is more than 60 days, not 60 days or more. Financing taxes that are more than 60 days delinquent makes a refinance ineligible as a limited cash-out refinance, and Fannie Mae says it "must be treated as a cash-out refinance" (Fannie Mae Selling Guide B2-1.3-02, dated October 8, 2025, read October 18, 2026). That holds even when you take no other money out. Taxes that are less overdue can be financed in a limited cash-out refinance when they are paid in full to the taxing authority at closing.
Fannie Mae's student loan cash-out refinance is the exception. It does not allow financing taxes that are more than 60 days delinquent. These are refinance rules. They do not apply to a HELOC.
If credit cards or other debts are part of the picture too, the page on using home equity to pay off credit cards covers a refinance that pays off more than the taxes.
Will my lender make me set up an escrow account?
For a Fannie Mae cash-out refinance that finances taxes more than 60 days delinquent, yes, subject to applicable law or regulation. Fannie Mae's escrow topic says lenders "cannot waive an escrow account for certain refinance transactions" (Fannie Mae Selling Guide B2-1.5-04, dated April 1, 2020, read October 18, 2026). HELOCs and other programs set their own requirements.
Closing escrow and an escrow account are two different things. Closing escrow pays the back taxes once, at closing. An escrow account collects with each mortgage payment and pays the future tax bills. I tell you whether the proposed loan includes one and how the next tax bills get paid.
My house is paid off, but I owe property taxes. What are my options?
A HELOC on the paid-off home, or a new mortgage on it. Fannie Mae's cash-out refinance includes "a new mortgage on a property that does not have a mortgage lien against it (the borrower owns the property free and clear at the time of refinance)" (B2-1.3-03). I still review the tax delinquency, your ability to repay and the program's rules. Borrowing replaces the tax debt with a loan; it does not make the debt go away.
The page on a HELOC on a paid-off home covers how a line works when nothing else is recorded ahead of it.
Should I ask the county for a payment plan before getting a loan?
Yes, ask. If a county plan fits your budget and resolves the delinquency in time, it may make more sense than a new loan against your home. Ask the county about eligibility, the remaining charges, the next tax bills and what the plan does to the county's next step.
A plan is not always available. In California, an installment plan has to be started before the tax collector obtains the power to sell (Revenue and Taxation Code 4217). The San Francisco Treasurer says taxpayers who are not in power to sell status may request a plan over a five-year period, and that properties subject to the power to sell "are not eligible for payment plans" (San Francisco Treasurer and Tax Collector). In Utah, Oregon and Arizona, ask your county tax collector or treasurer what it offers.
How do property tax sales differ in California, Utah, Oregon and Arizona?
These are the statutory timelines as I read them on October 18, 2026. They are general rules, not your deadline. Exceptions apply, counties run their own calendars, and the payoff grows with penalties and costs. Ask the county tax collector for your parcel's actual dates, and an attorney about your redemption rights. Nothing here is legal advice.
| State | When unpaid taxes become delinquent | When the county can sell or foreclose | Redeeming before the sale or judgment | Source |
|---|---|---|---|---|
| California | The first installment after December 10 and the second after April 10. Taxes still unpaid are declared in default on July 1. | Five years or more after a home becomes tax-defaulted, the tax collector has the power to sell it. Some nonresidential commercial property has a three-year period. | Until the close of business on the last business day before the tax sale begins. The right revives if the property is not sold. | R&T Code 2617, 2618, 3436, 3691, 3707 |
| Arizona | The first half after November 1 at 5:00 p.m. and the second half after May 1 at 5:00 p.m. | The county treasurer sells a tax lien, not the house, at a sale held in February. Beginning three years after the lien sale, the buyer may bring an action to foreclose the right to redeem. | At any time within three years of the lien sale, and after that until a treasurer's deed is delivered. Once a foreclosure action is filed, at any time before judgment is entered. | A.R.S. 42-18052, 42-18101, 42-18112, 42-18152, 42-18201, 42-18206 |
| Utah | Taxes are due November 30. A tax paid or postmarked after the due date is delinquent. | Property not redeemed by March 15 after four years from the delinquency goes on the tax sale listing. The county auditor holds the tax sale in May or June. | Any person may redeem for the record owner at any time before the tax sale, by paying the delinquent taxes and everything that has accrued on them. | Utah Code 59-2-1331, 59-2-1343, 59-2-1346, 59-2-1351; Salt Lake County |
| Oregon | Taxes not paid on or before May 15 are delinquent. | Property is subject to foreclosure three years after the earliest date of delinquency. | For two years after the judgment of foreclosure. Property not redeemed is then deeded to the county, and the rights of redemption end. | ORS 311.510; ORS 312.010, 312.120 and 312.200; Clackamas County |
Salt Lake County describes the Utah timeline as taxes "delinquent for four years from the final tax payment deadline (five years including by the date of the sale)" (Salt Lake County Auditor). Clackamas County describes the Oregon one in the statute's terms: "The property is subject to foreclosure when the taxes are three years delinquent" (Clackamas County). Arizona amended its tax lien foreclosure sections in 2026, so an attorney should confirm how a judgment on your parcel would be carried out (A.R.S. 42-18204).
Could a private loan help with overdue property taxes in Utah?
For a Utah investment property, yes. I arrange Utah hard money loans through West Capital Lending by placing them with private investors I work with. I would check the property, the loan purpose, the county deadline and how the loan gets paid off. This is not for the home you live in: an owner-occupied home gets a separate consumer financing review. The Utah hard money page covers how those loans work for investment property.
What should I send first?
- The property state and county, and whether you live in the home or rent it out.
- The latest county tax bill or delinquency notice, and any sale, foreclosure or tax lien certificate notice, word for word.
- Any sale date or court date.
- Your first mortgage statement, and any second loan statement, or a note that the home is paid off.
- Whether you are current on the mortgage.
Send the notices and your documents through the secure process I give you when we talk, not by ordinary text. A conversation does not pull your credit.
Questions people ask next
Can a property tax lien keep my HELOC from closing?
Yes, unless the program accepts the situation and the payoff and lien position can be handled at closing. I read the county record and the title report, not just your credit report. In Arizona, the property tax lien comes ahead of other liens on the home under the statute.
Does applying for a refinance postpone a county tax sale?
No. Do not rely on an application, a preliminary approval or signed loan documents to postpone a sale. A completed payoff, received by the county in time, can resolve the delinquency. Ask the county tax collector or an attorney to confirm the deadline and your redemption rights.
Can I apply if the county has already sold a tax lien certificate?
Tell me right away. I need the certificate and the redemption status before I review financing. In Arizona, the county sells a tax lien, not the house, and the owner can redeem it before judgment in a foreclosure action. An attorney should explain your remaining rights and deadlines.
What if I cannot afford the next property tax bill either?
Paying the overdue taxes only addresses the existing balance. I look at the next tax bills and your ongoing payments before I suggest borrowing. Ask the county about payment or relief programs too.
Is a county property tax lien the same as an IRS tax lien?
No. County property taxes are owed on the home itself, and the county collects them. An IRS lien is for federal tax debt and follows its own release rules. Can I get a HELOC or refinance if there is an IRS tax lien on my house? covers the federal side.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Sources and checked dates
Sources: Confirmed by Zach, October 2026 (checked 2026-10-18) · Fannie Mae Selling Guide, B3-6-07, Debts Paid Off At or Prior to Closing (04/05/2023) (checked 2026-10-18) · Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025) (checked 2026-10-18) · California Revenue and Taxation Code 3691 (official text on leginfo) (checked 2026-10-18) · Arizona Revised Statutes 42-18201, Action to foreclose right to redeem (checked 2026-10-18) · Utah Code 59-2-1343, Tax sale listing (effective 1/1/2026) (checked 2026-10-18) · Oregon Revised Statutes chapter 312, Foreclosure of Property Tax Liens (checked 2026-10-18) · Zach von der Linden, statement to this site (2026-10-16) (checked 2026-10-16) · CFPB, What is a HELOC? (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (9)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach arranges a HELOC that leaves the first mortgage as it is, a HELOC on a paid-off home, or a refinance that includes the overdue property tax payoff at closing, through West Capital Lending with a lender that makes the loan. He puts the financing together; whether a given file fits is decided under the program's written rules. | Confirmed by Zach, October 2026 | 2026-10-18 |
| Fannie Mae Selling Guide B3-6-07, Debts Paid Off At or Prior to Closing (04/05/2023), Collections, Charge-Offs of Non-Mortgage Accounts, Judgments, and Liens: "Delinquent credit" "including taxes, judgments, charge-offs of non-mortgage accounts (see below for exceptions), tax liens, mechanic's or materialmen's liens, and liens that have the potential to affect Fannie Mae's lien position or diminish the borrower's equity" "must be paid off at or prior to closing." | Fannie Mae Selling Guide, B3-6-07, Debts Paid Off At or Prior to Closing (04/05/2023) | 2026-10-18 |
| Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025), Acceptable Uses: "The borrower can include real estate taxes in the new loan amount. Delinquent real estate taxes (taxes past due by more than 60 days) can also be included in the new loan amount, but if they are, an escrow account must be established, subject to applicable law or regulation"; the transaction may "be a new mortgage on a property that does not have a mortgage lien against it (the borrower owns the property free and clear at the time of refinance)." The Student Loan Cash-Out Refinances feature reads: "With the exception of real estate taxes that are more than 60 days delinquent, the borrower can include real estate taxes in the new loan amount as long as an escrow account is established." B2-1.3-02, Limited Cash-Out Refinance Transactions (10/08/2025): "When the following conditions exist, the transaction is ineligible as a limited cash-out refinance and must be treated as a cash-out refinance: ... the borrower finances the payment of real estate taxes that are more than 60 days delinquent for the subject property in the loan amount"; other real estate taxes may be included provided they are "paid in full through the transaction" and "disbursed to the taxing authority through the closing transaction." B2-1.5-04, Escrow Accounts (04/01/2020): "For certain refinance transactions where the borrower is financing real estate taxes in the loan amount, an escrow account is required, subject to applicable laws or regulations," and lenders "cannot waive an escrow account for certain refinance transactions." | Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025) | 2026-10-18 |
| California Revenue and Taxation Code: the first installment is delinquent "at 5 p.m., or the close of business, whichever is later, on December 10" (2617) and the second on April 10 (2618). "At 12:01 a.m. on July 1, the taxes, assessments, penalties, and costs on real property ... which have not been paid shall by operation of law be declared in default" (3436). "Five years or more, or three years or more in the case of nonresidential commercial property, after the property has become tax defaulted, the tax collector shall have the power to sell" (3691(a)(1)(A)); a residence is excluded from nonresidential commercial property (3691(a)(1)(D)). "The right of redemption terminates at the close of business on the last business day prior to the commencement date of the tax sale," and "The right of redemption revives if the property is not sold" (3707). An installment plan may be elected "at any time prior to 5 p.m. on the last business day prior to the date when the tax collector obtains the power to sell the property" (4217). The San Francisco Treasurer and Tax Collector: "Taxpayers who are not in power to sell status may request an installment payment plan to pay defaulted taxes over a five-year period," and "Properties that are subject to "Power to Sell" are not eligible for payment plans." | California Revenue and Taxation Code 3691 (official text on leginfo) | 2026-10-18 |
| Arizona Revised Statutes: one-half of the taxes "is delinquent after November 1 at 5:00 p.m. and the remaining one-half that is unpaid is delinquent after the following May 1 at 5:00 p.m." (42-18052(B)). The lien "Is prior and superior to all other liens and encumbrances on the property, except: (a) Liens or encumbrances held by this state. (b) Liens for taxes accruing in any other years" (42-17153(C)). The county treasurer sells "the tax liens" (42-18101(A)); "The tax lien sale shall be held in February" (42-18112(A)). "At any time beginning three years after the sale of a tax lien ... if the lien is not redeemed, the purchaser ... may bring an action to foreclose the right to redeem" (42-18201(A)). A lien "may be fully redeemed at any time: 1. Within three years after the date of tax lien sale. 2. After three years but before the delivery of a treasurer's deed" (42-18152(A)), and a person entitled to redeem "may redeem at any time before judgment is entered" (42-18206). | Arizona Revised Statutes 42-18201, Action to foreclose right to redeem | 2026-10-18 |
| Utah Code: property taxes "are due on November 30 of each year following the date of levy," and "If a property tax is paid or postmarked after the due date ... the property tax is delinquent" (59-2-1331, effective 1/1/2026). "If any property is not redeemed by March 15 following the lapse of four years from the date when any item in Subsection (1)(b) became delinquent, the county treasurer shall immediately file a listing" for the tax sale (59-2-1343, effective 1/1/2026). "The county auditor shall conduct the tax sale in May or June of the current year" (59-2-1351, effective 3/13/2023). "Property may be redeemed on behalf of the record owner by any person at any time before the tax sale," by "paying to the county treasurer all delinquent taxes, tax notice charges, interest, penalties, and administrative costs that have accrued on the property" (59-2-1346, effective 5/4/2022). Salt Lake County: a tax sale is "the public auction of any real property with taxes that have been delinquent for four years from the final tax payment deadline (five years including by the date of the sale)." | Utah Code 59-2-1343, Tax sale listing (effective 1/1/2026) | 2026-10-18 |
| Oregon Revised Statutes (2025 edition): "Taxes on real property not paid on or before May 15 are delinquent" (311.510). "Except as otherwise provided by law, real property within this state is subject to foreclosure for delinquent taxes whenever three years have elapsed from the earliest date of delinquency of taxes levied and charged thereon" (312.010(1)). Property sold to the county "shall be held by the county for the period of two years from and after the date of the judgment of foreclosure, unless sooner redeemed" (312.120(1)). "The properties not redeemed within the two-year period prescribed by ORS 312.120 shall be deeded to the county by the tax collector. All rights of redemption ... shall terminate on the execution of the deed to the county" (312.200). Clackamas County: "Any taxes remaining unpaid as of May 16 are delinquent. The property is subject to foreclosure when the taxes are three years delinquent." | Oregon Revised Statutes chapter 312, Foreclosure of Property Tax Liens | 2026-10-18 |
| Zach arranges Utah hard money loans through West Capital Lending by placing them with private investors he works with. The private-investor placements and his compensation run through West Capital Lending as his sponsoring brokerage. The loan funds come from the investors; West Capital Lending is the brokerage, not the source of the funds. | Zach von der Linden, statement to this site (2026-10-16) | 2026-10-16 |
| The CFPB describes a HELOC as an open-end line of credit for borrowing repeatedly against home equity, says draw and repayment periods vary, and warns that falling behind could cost you your home. | CFPB, What is a HELOC? | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-18.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.