Real Estate Tax Redemption
November 4, 2022
In Illinois, property owners including homeowners pay Property taxes (Real Estate taxes) to the county.
WHAT IF I DON’T PAY THE TAXES?
The county has a lien on your home. When you fall behind more than one (1) year the county “sells” your taxes. The tax buyer pays the county the taxes due. Then tax buyer waits in hopes of taking ownership of your home.
Property owners have a period of time to redeem the taxes: two (2) years for property owners but increased to 30 months for homeowners.
During this period of time interest and other cost accumulate. Also, new taxes become due.
The amount to redeem becomes very large. Small delinquencies grow into thousands of dollars. These add-ons include:
- Delinquent and current taxes;
- Interest (18% per years); and
- Penalties and cost.
You can redeem any time before the last date to redeem. The county will issue an Estimate of Redemption (for a cost of $10.) If you can pay it the funds must be certified funds: not a personal check. Furthermore, it must be paid in full; no installments.
WHAT IF I DON’T REDEEM IN TIME?
After the final date to redeem has past the tax buyer files a petition in court for a tax deed. They own the property. And, they can evict you.
WHAT CAN I DO BEFORE THE LAST DATE TO REDEEM HAS EXPIRED?
- Obviously pay it. You have a right to sell your home. You have a right to get a mortgage.
- CHAPTER 13.
You can file Chapter 13 any time before the last date to redeem. In Chapter 13 you have up to five (5) years to repay the county.