Falling behind on property taxes will put homeowners at risk of losing their homes. In Illinois, unpaid property taxes can result in a tax sale or foreclosure proceedings. These situations can force homeowners out of their properties if they fail to take action. Under 35 ILCS 200/21-90, county governments have the right to sell delinquent property taxes to investors, who may eventually obtain ownership of the home if the homeowner does not redeem the debt. Homeowners facing tax delinquency in Chicago and across Illinois need to understand their legal rights and the steps available to protect their property.
At Covert Marrero Covert LLP, we assist homeowners in resolving unpaid property tax issues, fighting foreclosure proceedings, and reclaiming their financial stability. Illinois law offers multiple ways to prevent foreclosure and protect a home, including installment payment plans, tax exemptions, and redemption rights. Taking action quickly can mean the difference between saving your home and losing it to foreclosure.
How Unpaid Property Taxes Lead To Foreclosure
Tax Sale Process In Illinois
Under 35 ILCS 200/21-110, if property taxes remain unpaid for a specified period, the county will conduct a tax sale, allowing private investors to purchase the delinquent taxes. The property owner must then redeem the taxes by paying the amount owed plus penalties and interest.
Redemption Period And Its Importance
Illinois law provides a redemption period for homeowners to pay off the delinquent taxes before losing ownership of the property. The length of this period depends on the type of tax sale conducted:
- Tax lien sale – Homeowners typically have 2.5 years to redeem the property.
- Tax deed sale – If the property is not redeemed, the tax buyer can obtain a tax deed under 35 ILCS 200/22-40, leading to permanent loss of ownership.
Options To Protect Your Home From Foreclosure
Setting Up A Payment Plan
Many counties, including Cook County, offer installment payment plans to help homeowners catch up on unpaid property taxes. These payment plans allow homeowners to spread out payments over a set period, preventing a tax sale.
Applying For Tax Exemptions
Some homeowners may qualify for property tax exemptions that can lower the total amount owed. These include:
- Senior Citizen Exemption
- Homestead Exemption
- Disabled Persons Exemption
Filing For Bankruptcy To Halt Tax Foreclosure
Under 11 U.S.C. § 362, filing for bankruptcy can temporarily stop foreclosure proceedings, allowing homeowners to reorganize their finances. A Chapter 13 bankruptcy may provide a repayment plan that includes overdue property taxes.
Challenging The Tax Sale
Homeowners who believe their tax sale was conducted improperly may be able to challenge the sale in court under 35 ILCS 200/21-175. Errors in notification, calculation, or process may invalidate the sale.
Frequently Asked Questions
What Happens If I Miss My Property Tax Payment Deadline?
If you miss a property tax payment, the county will impose penalties and interest on the overdue amount. Continued non-payment may result in a tax lien sale, where your unpaid taxes are sold to a third party.
How Long Do I Have To Pay Off My Delinquent Property Taxes?
Illinois law provides a redemption period that typically lasts 2.5 years for most tax sales. If the taxes are not paid within that period, the tax buyer can apply for a tax deed, which results in the loss of homeownership.
Can I Stop A Tax Sale Once My Property Is Listed?
Yes, homeowners can prevent a tax sale by paying the outstanding balance or setting up a payment plan with the county before the sale date. If the tax sale has already occurred, homeowners may still redeem the property within the legal timeframe.
What Is A Tax Lien, And How Does It Affect My Home?
A tax lien is a legal claim placed on a property due to unpaid taxes. The county may sell this lien to an investor, giving them the right to collect payments with interest. If the homeowner fails to repay the lien within the redemption period, the investor may take ownership of the home.
What If I Cannot Afford To Pay My Property Taxes?
Homeowners facing financial hardship may be eligible for property tax relief programs or payment plans. Seniors, disabled individuals, and veterans may also qualify for tax exemptions that reduce the amount owed.
Can Bankruptcy Help Me Stop A Tax Foreclosure?
Yes, filing for Chapter 13 bankruptcy can temporarily stop tax foreclosure and provide a structured repayment plan that includes property taxes. However, property taxes must eventually be paid to avoid foreclosure.
What Should I Do If I Receive A Tax Sale Notice?
If you receive a tax sale notice, contact an attorney immediately to explore your options. Paying the delinquent amount, negotiating a payment plan, or challenging the tax sale process may help protect your home.
How Can I Challenge An Improper Tax Sale?
If there were errors in notification, calculation, or legal procedures, homeowners could file a court challenge under 35 ILCS 200/21-175. Successfully challenging a tax sale may allow homeowners to reclaim their property.
Call Our Chicago Property Foreclosure Defense Attorney For A Free Consultation
If you are facing unpaid property taxes and the risk of foreclosure, you do not have to go through this process alone. At Covert Marrero Covert LLP, we help homeowners fight foreclosure, set up payment plans, and explore legal options to protect their homes. The sooner you act, the more options you will have to avoid losing your property.
Contact our Naperville foreclosure defense attorney at Covert Marrero Covert, LLP by calling (630) 717-2783 to schedule a consultation. Our offices in Warrenville, Schaumburg, Naperville, and Joliet serve homeowners across Chicago and the entire Chicagoland metro area. Let us help you keep your home.
