Cityhood for East L.A.

As an attorney experienced in real property matters, I don't believe the foreclosures are significant to the fiscal viability of a city anyway. This is because they really will not reduce the real property tax revenue that will be collected from each parcel. This is because under the Revenue and Taxation code, all real property taxes automatically become a lien on that real property on January 1 of each calendar year. This also applies to properties in foreclosure. The buyer at the foreclosure sale will either pay a purchase price that covers the existing property tax liens or will assume title to the property with any existing real property liens. Then, if existing property taxes are not paid off, the tax collector will declare the property "tax-defaulted" and eventually sell the property to pay off all past-due real property taxes. Therefore, the net property tax revenue is not diminished when property is in foreclosure.