Legal Question in Real Estate Law in California

Re: proprty tax default

Not directly, but perhaps in a sense. The unpaid property taxes are a high-priority lien on the house, higher than any private lien such as a mortgage. They will not be paid off from the proceeeds of foreclosure, so the buyer will acquire title "subject to" the property tax lien. The buyer will probably take this into consideration in bidding. This means a lower selling price and a higher deficiency. If you are liable for a deficiency, the amount will, in theory at least, be higher. Hence, the taxes may yet become a personal liability via this indirect route.

There is another way (or two) you can become liable. The lender may exercise a "right to cure" by paying the taxes for you before the foreclosure sale, and billing them. Also, failure to pay property taxes can be considered "bad faith waste" if the borrower had the ability to pay them, and thus give rise to a liability outside the borrower's antideficiency protection.