<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=36bRgv_1DIMpfe700" alt="https://img.particlenews.com/image.php?url=36bRgv_1DIMpfe700" width="876" height="493" ></figure>Borrowers can save remaining home equity after delinquent property taxes and fees are paidIllinois has changed its property tax foreclosure system to require that surplus equity from a property sale be returned to the former owner after delinquent taxes, interest and fees are paid.Gov. JB Pritzker signed the legislation into law Friday, July 10. The measure was promoted by Cook County Treasurer Maria Pappas and is intended to bring Illinois into compliance with the U.S. Supreme Court’s 2023 decision in Tyler v. Hennepin County.In that case, the court held that governments may retain only the amount needed to satisfy a property owner’s tax debt and related costs, rather than keeping any remaining value from the sale.Under Illinois’ previous system, tax lien investors could eventually acquire properties through the tax foreclosure process and retain the remaining equity after the outstanding tax debt was paid.The new law creates a tax-deed auction process in which delinquent taxes, interest and fees will be paid from the proceeds of a public sale. Any remaining proceeds will be returned to the former property owner.“This legislation restores fairness,” Pappas said. “When someone loses a property because of unpaid taxes, the government should collect what's legally owed and nothing more. Families deserve to receive the value they spent years building, not watch it disappear into the pockets of a tax buyer because of an outdated system.”The legislation was drafted by the Cook County Treasurer’s Office with input from Cook County Board President Toni Preckwinkle, other county treasurers and housing advocacy organizations. It was sponsored by state Sen. Celina Villanueva and state Rep. Curtis Tarver, both Chicago Democrats.The law also begins a transition away from private tax buying in Cook County. After six additional tax sales, which are expected to conclude by 2030, Cook County will acquire liens on properties with delinquent taxes.According to Pappas’ office, the change is expected to give property owners more opportunities to enter payment plans with the county before a property is offered for auction.The law is also intended to increase transparency in the tax collection process while allowing local governments to recover unpaid taxes and related costs.<h2>Bottom Line</h2>Illinois’ new process reduces the risk that delinquent property taxes will wipe out a borrower’s remaining home equity. Unpaid taxes are still a serious default risk, but former owners will now be entitled to any surplus proceeds after taxes, interest and fees are paid.</div></body>

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Borrowers can save remaining home equity after delinquent property taxes and fees are paid. Illinois has changed its property tax foreclosure system to require that surplus equity from a property sale be returned to the former owner after delinquent taxes, interest and fees are paid. Gov. JB Pritzker signed the...

Illinois Changes Property Tax Foreclosure Process To Return Surplus Equity

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Borrowers can save remaining home equity after delinquent property taxes and fees are paid. Illinois has changed its property tax foreclosure system to req

Illinois Changes Property Tax Foreclosure Process To Return Surplus Equity

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