House Rich, Cash Poor in Los Angeles County

Property Tax Relief Programs That May Lower Your Bill

The property tax bill keeps coming every year, whatever else happens. It also stays the owner's responsibility under every borrowing option described later on this page, including a reverse mortgage.

When the bills are due. The Los Angeles County Treasurer and Tax Collector's 2026-2027 bill insert gives these dates:

• The first installment is due November 1 and becomes delinquent at the close of business on December 10.
• The second installment is due February 1 and becomes delinquent at the close of business on April 10.
• If a delinquency date falls on a weekend, it moves to the close of business on the next business day.

A payment that is late, or that is not postmarked by the delinquency date, carries a 10 percent penalty on each installment, plus a $10 cost on the second installment. The Tax Collector says it accepts partial payments, and that a partial payment reduces the penalties charged.

The homeowners' exemption. This lowers the value the county uses to figure your tax. The law sets the exemption at $7,000 of the dwelling's full value (Cal. Rev. & Tax. Code § 218). The exemption does not apply to a home that is rented, vacant, or a secondary home. A person who is away from home in a hospital or other care facility is generally still treated as living there, as long as they intend to return and the statute's other conditions are met.

The State Board of Equalization says the home must be your principal residence on January 1. It also says the claim is a one-time filing with the county assessor, on form BOE-266. A first-time filer must file by February 15 to receive the full exemption for that year.

Property Tax Postponement. This State program lets you put off paying current-year property taxes. The State Controller's Office runs it for homeowners who are seniors, are blind, or have a disability. The requirements include at least 40 percent equity in the home and an annual household income of $57,002 or less, among other requirements. For 2026-27, applications are accepted from October 1, 2026 through February 10, 2027.

The 40 percent equity rule comes from Cal. Rev. & Tax. Code § 20583, and it must be met each time a claim is filed. The SCO fact sheet adds several conditions:

• The applicant must be at least 62, or blind, or disabled.
• There must be no reverse mortgage on the property.
• The postponed taxes must eventually be repaid. Repayment is secured by a lien, which is a legal claim against the property.
• The postponed taxes carry interest of 5 percent per year, calculated as simple interest.
• Funding is limited and given out first come, first served, so not everyone who qualifies may be approved.

Ways to Turn Home Equity Into Cash Without Selling

Once tax relief has been checked, the question becomes how to turn some of the home's value into cash. Each path below is described by what it involves and what it trades. They are listed in no particular order.

• Home equity loan. This is a lump sum borrowed against the home, also called a second mortgage. Monthly repayment begins right away.
• Home equity line of credit (HELOC). This is a credit line secured by the home. You draw money as you need it and make monthly payments on what you have borrowed. The CFPB says these loans may be a cheaper way to borrow than a reverse mortgage, but they carry their own risks and depend on your income and credit.
• Cash-out refinance. This replaces your existing mortgage with a larger one, and you receive the difference in cash. A new monthly payment begins. The cost depends on the interest rate at the time.
• Reverse mortgage. This is a loan for homeowners 62 or older that requires no monthly mortgage payment, though the borrower keeps paying ongoing housing costs. The next section sets out how it works.
• Selling or downsizing. This releases the full equity, but it means moving. The CFPB notes that moving to a more affordable home can lower overall expenses.
• Help from family. This can be informal, but it carries its own legal and financial questions that are worth settling clearly.

These options are compared in more detail in cash from your home without selling. For an owner with no mortgage left, see borrowing against a paid-off house.

The HECM Reverse Mortgage: How It Works in California

A homeowner in Los Angeles County who hears "reverse mortgage" may reasonably wonder what is really involved. The rules below are federal and California rules. They apply the same way in every county.

What a HECM is. HECM stands for Home Equity Conversion Mortgage. HUD calls it the only reverse mortgage insured by the U.S. Federal Government. It is available only through a lender approved by the Federal Housing Administration (FHA).

Age. Federal law requires the homeowner, or the homeowner's spouse, to be at least 62 years old (12 U.S.C. § 1715z-20(b), (d)). The regulation adds that the youngest borrower must be 62 or older at the time the loan closes (24 C.F.R. § 206.33).

Your obligations. The CFPB explains that you make no monthly mortgage payments. Instead, interest and fees are added to the loan balance each month, and the balance grows. The CFPB says homeowners are required to pay property taxes and homeowners insurance, live in the home as their principal residence, and keep the house in good condition. The CFPB also warns that you could face foreclosure if you run out of money to pay property taxes, insurance, or other housing costs.

When the loan comes due. Under California law, the loan may become due when:

• the home is sold or the title is transferred;
• all borrowers stop living in the home as their principal residence;
• an agreed maturity date arrives; or
• another event named in the loan documents puts the lender's security at risk.

An absence of up to 60 consecutive days does not make the loan due. A longer absence of less than one year does not make it due either, as long as you secured and protected the home beforehand as the loan documents require (Cal. Civ. Code § 1923.2(f)-(g)).

What you or your heirs can owe. Federal law says the homeowner is not liable for more than the net proceeds from selling the home or the insurance benefits paid (12 U.S.C. § 1715z-20(d)(7)).

Counseling. A HECM requires counseling with an independent, HUD-approved counselor beforehand. In California, a lender may not accept your final application, or charge you fees, until seven days have passed since your counseling session (Cal. Civ. Code § 1923.2(k)).

Costs. Federal rules limit the origination fee, and the lender discloses the actual amount. HUD sets the maximum amount it will insure and publishes the current figure. Mortgage insurance premiums also apply, and HUD publishes those as well. HUD says the amount available to a borrower depends on factors that include the age of the youngest borrower or eligible non-borrowing spouse, and the lowest of the appraised value, the HECM FHA mortgage limit, or the sales price.

Changing your mind. The CFPB says that with most reverse mortgages, you have three business days after closing to cancel without penalty.

Other County and State Resources for Los Angeles Homeowners

Money worries can push the larger questions about the house to the side. These resources can help with both.

• The Tax Collector. The bill insert names online payment, and also card payment by phone for current-year taxes only, at 1(888) 473-0835. Card payments carry a 1.99 percent service fee. Payment by bank account through ACH has no cost.
• The Office of the Assessor. This office values property in Los Angeles County, and it is where the homeowners' exemption is claimed.
• The State Controller's Office. The SCO handles postponement questions at (800) 952-5661 and through its program pages.
• A benefits check. The CFPB says state and local programs can help with utilities, fuel and home repairs. It also points to benefitscheckup.org for information about these and other benefit programs.

Questions to Work Through Before Choosing a Path

Every household's choice depends on its own facts. These questions can help bring those facts into focus.

• How long do you plan to stay? The CFPB says that if a health issue or another event may lead to a move soon, a reverse mortgage is an expensive way to cover short-term needs.
• Is the need one-time or ongoing? A single repair and a monthly shortfall point in different directions.
• Who else lives in the home? A spouse or partner can affect how a reverse mortgage works. HUD counts an eligible non-borrowing spouse's age when figuring the amount available.
• Are you already using the tax relief available? The exemption and postponement, described above, come first.
• Who can help you think it through? A HUD-approved counselor talks with you about other options, the financial implications of a reverse mortgage, and its possible effects on taxes, benefits and your heirs (12 U.S.C. § 1715z-20(f)). A financial adviser, a tax professional or an attorney can address questions outside that discussion.

To find a counselor who serves Los Angeles County, HUD offers the HECM Counselor Roster and the phone line (800) 569-4287.