New Illinois Bill Helps Homeowners at Risk Over Property tax

Illinois lawmakers passed a bill aimed at helping homeowners pay delinquent property taxes before their homes are seized.

In 2023, the Supreme Court unanimously ruled that local governments cannot keep excess profit when they seize and sell a home to investors. Illinois did not comply with the ruling for three years. Just this weekend, state lawmakers passed a law that allows for compliance, according to the Chicago Sun Times. The bill only needs Gov. JB Pritzker’s signature.

In the previous system, Cook County could put tax liens on any property with a minimum one year of delinquent property taxes. They could sell those liens at an annual tax sale. Homeowners must make up the previous debt plus fees and interest. Around 90 to 95 percent of property owners settle the debt within the two-and-a-half year period they have to make it up, according to the outlet. If they don’t, the tax buyers can petition the court for their home’s deed.

The new system gives much more leniency. After the county holds six annual tax sales, delinquent certificates are still sold, but if the tax buyer wants the deed, an auction is held, with all proceeds going to paying off the tax debt, according to the outlet.

Property owners can also participate in the public auction. If any certificates are not purchased at the sale, the county offers homeowners the option to enroll in a payment plan. The redemption period is expanded, and there is a surplus equity fund for those at risk of losing their homes.

Previously, Cook County was found liable in a federal class action lawsuit centered on 2,500 property owners who didn’t get their surplus equity once their late taxes were paid.

Toni Preckwinkle, president of the Cook County Board of Commissioners, released a statement on the legislation, saying, “This bill sunsets the practice of private tax buying in Cook County and replaces it with a more equitable process that better protects property owners.”

— Hunter Cooke