Property Tax Liens In Illinois
Property Tax Liens In Illinois are exactly that. Property tax liens.
Each County Treasurer’s Office is required to conduct two types of sales in which delinquent property taxes are sold.
The first is the Annual Tax Sale, held once a year. If property taxes for the preceding year are delinquent they are offered for sale at the Annual Tax Sale.
The sale may be held any time from the fall of that year to the fall of the following year.
Those interested must meet a set of qualifications to participate in the Annual Tax Sale. They must complete registration materials and provide collateral or a bond. The registration materials include rules for the conduct of a tax sale.
The biennial Scavenger Sale. These are conducted in odd-numbered years. They offer properties that have delinquencies of at least three that were not purchased at an Annual Tax Sale.
In Cook County, the sale has traditionally taken place in the fall or early winter months.
Obtain a complete understanding of the distinctions between these sales. Also understand how to proceed to tax deed. Read 35 ILCS (Illinois Compiled Statutes) 200/1-1, et. seq.
After a tax Sale, you will be issued a certificate of purchase, which represents a lien on the property. The property owner has a 2 to 2½ year redemption period, depending on property classification.
If the tax lien is not redeemed by the owner, the you may petition the circuit court for a tax deed after first meeting certain legal requirements.
The tax buyer may also pay all unpaid taxes for the next two subsequent years at a specified time.
In cases where there are no bidders on a parcel, the County becomes the property owner and earns an annual rate of 18%.
These County owned certificates are available for purchase by investors in the amount that the County paid, along with the 18%.
A list of available parcels is available from the Treasurer’s offices in Illinois.
You do have to register for the sale in Illinois at least 10 business days prior to the start of the sale.
There are 102 different counties in Illinois so educate yourself on the various local rules, procedures and requirements.
Some counties will require that you put up some form of deposit in order to bid and some counties will only accept certified funds in the exact amount owed while refusing to accept cash.
By law, the maximum interest rate bid is 18% per 6 months, that’s 36% per year.
Illinois pays the highest interest rate of all the tax lien states, but the interest rate is bid down at the tax sale.
Although you can find tax sale information online for a few counties, only the larger counties will have property lists online.