After a tax sale, you may “redeem” your property in Illinois.
If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. When taxes are not paid, the taxing authority will either sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another way to get title to the house) or sell the property itself in a tax sale. In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.
In Illinois, if you do not pay your property taxes, the county collector may petition to the court for a judgment against the property for the taxes and fees, as well as an order of sale. If you do not pay your taxes on time, the court will issue a judgment, and the county collector will organize an auction (an “annual tax sale”) to sell the outstanding tax obligation. 35 Illinois Comp. Stat. Ann. 200/21-190.
The purchaser during the sale does not acquire ownership of the property. Instead, the buyer receives a certificate of purchase, which acts as a lien on the property. 35 Illinois Comp. Stat. Ann. 200/21-250. Furthermore, under Illinois law, you normally have two years and six months following the sale to redeem the property, however the time limit may vary based on your specific circumstances. 35 Illinois Comp. Stat. Ann. 200/21-350. However, if you do not redeem the house within the time frame specified, the purchaser may ask the court for a tax deed to your home.
Table of Contents
In Illinois, there is a redemption period after a tax sale.
In Illinois, the redemption term is two years and six months if the property contains six or fewer housing units. 35 Illinois Comp. Stat. Ann. 200/21-350.
Redemption Period for Abandoned Homes Reduced
If the property is abandoned, the purchaser may petition the court to lower the redemption time to two years from the date of sale. 35 Illinois Comp. Stat. Ann. 200/21-350.
Redemption Period Extend
The purchaser from the tax sale has the option of extending the redemption time for up to three years after the sale. 35 Illinois Comp. Stat. Ann. 200/21-385. If the redemption term is extended, you must redeem on or before the new redemption date. 35 Illinois Comp. Stat. Ann. 200/21-350.
How Much Will It Cost to Redeem My Illinois Home?
To redeem the residence, you must pay a variety of fees, including:
the certificate value (including all taxes, special assessments, interest, penalties, costs, and applicable fees)
a penalty dependent on the date of redemption (the penalty grows every six months, so the longer you wait to redeem, the more you’ll have to pay)
the sum of all future taxes, special assessments, accumulated interest on those taxes and special assessments, and charges paid by the purchaser, plus a penalty, as well as fees and costs paid by the purchaser in connection with filing a petition for a tax deed with the court. 35 Illinois Comp. Stat. Ann. 200/21-355.
What Happens If the Property Doesn’t Sell at the Auction?
If the property fails to sell in the public auction, it may be forfeited to the state. When a property is forfeited due to outstanding taxes, anybody who wishes to buy it may file an application to the county clerk. The county clerk must then quickly deliver notification to the person in whose name the general taxes were last assessed or paid by registered or certified mail, return receipt requested. The notification will state that an application to acquire the property for forfeited taxes has been made and that the property will be sold unless redeemed within 30 days of the notice’s distribution. As a result, the item may be redeemed for 30 days after it is sent. 35 Illinois Comp. Stat. Ann. 200/21-405.
How to Reduce Your Property Taxes
Even though you will have a redemption time after an Illinois tax sale, it is usually advisable to take action before your taxes become late in order to make them more inexpensive.
You may, for example, determine if you qualify for a property tax exemption or attempt to lower the amount of taxes you must pay by disputing the taxable value of your house (if you think the valuation is too high).