Tax Lien Certificates and Tax Deed Sales in Illinois IL

There are 102 Counties in Illinois. It became the 21st state on December 3, 1818. The state motto is "State Sovereignty, National Union".

Currently, the maximum penalty being offered to all Illinois tax lien certificate investors is 18% with a three year right of redemption.

Summary: Not less than 15 days before the date of application for judgment and sale of delinquent properties, the county collector shall mail, by registered or certified mail, a notice of the forthcoming application for judgment and sale (Sec. 21-110, Sec. 21-135), The collector, in person or by deputy, shall attend, on the day and in the place specified in the notice for the sale of property for taxes, and shall, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion, proceed to offer for sale, separately and in consecutive order, all property in the list on which the taxes, special assessments, interest or costs have not been paid (Sec. 21-205). Every property offered at public sale, and not sold for want of bidders, unless it is released from sale by the withdrawal from collection of a special assessment levied thereon, shall be forfeited to the State of Illinois (Sec. 21-225). If taxes on a property have been delinquent for two years or longer, the county may apply to have the tax lien certificates sold at a scavenger sale all properties shall be offered for sale in consecutive order as they appear in the delinquent list. The minimum bid for any property shall be $250 or one-half of the tax if the total liability is less than $500 (Sec. 21-260).

Law: Illinois Compiled Statutes, Chapter 35, Title 7, "Tax Collection" (35 ILCS 200/21-5 et seq.).

Tax Sale List: Use Illinois Tax Sale Lists to search for Illinois tax lien certificates to buy or bid on. Generally most Illinois tax sale lists will identify the property owner, parcel number, legal description and the amount due. In some cases, the tax sale list may include the tax collectors assessed value of the property.

Contact: The county tax collector.

Interest Rate: Maximum of 18% penalty. The person at the sale offering to pay the amount due on each property for the least percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding the maximum of 18% (Sec. 21-215). The penalty percentage is then computed through the date of redemption as a percentage of the certificate amount, as follows (Sec. 21-355):

• Redeemed within 06 months - penalty bid at sale;
• Redeemed within 12 months - two times the penalty interest rate bid;
• Redeemed within 18 months - three times the penalty interest rate bid;
• Redeemed within 24 months - four times the penalty interest rate bid;
• Redeemed within 36 months - five times the penalty interest rate bid.

The person Redeeming from scavenger sales shall pay interest on that part of the amount for which the property was sold equal to or less than the full amount of delinquent taxes, special assessments, penalties, interest, and costs, included in the judgment and order of sale as follows:

(1) If redeemed within the first 2 months from the date of the sale, 3% per month upon the amount of taxes, special assessments, penalties, interest, and costs due for each of the first 2 months or fraction thereof. (2) If redeemed at any time between 2 and 6 months from the date of the sale, 12% of the amount of taxes, special assessments, penalties, interest, and costs due. (3) If redeemed at any time between 6 and 12 months from the date of the sale, 24% of the amount of taxes, special assessments, penalties, interest, and costs due. (4) If redeemed at any time between 12 and 18 months from the date of the sale, 36% of the amount of taxes, special assessments, penalties, interest, and costs due. (5) If redeemed at any time between 18 and 24 months from the date of the sale, 48% of the amount of taxes, special assessments, penalties, interest, and costs due. (6) If redeemed after 24 months from the date of sale, the 48% provided for the 24 months together with interest at 6% per annum thereafter on the amount of taxes, special assessments, penalties, interest and costs due (Sec. 21-260).

Auction Type: Tax Lien Certificate (Sec. 21-240).

Bidding Procedure: The person at the sale offering to pay the amount due on each property for the least penalty percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding 18% of the amount of the tax or special assessment on property (Sec. 21-215). At scavenger sales, the certificate is sold to the highest bidder for cash, notwithstanding the bid may be less than the full amount of taxes, special assessments, interest, penalties and costs for which judgment has been entered (Sec. 21-260).

Costs: $10 automation fee (Sec. 21-245) Contact county officials for details.

Redemption Period: Generally, properties may be redeemed at any time before the expiration of 2 years from the date of sale, (Sec. 21-350). However, the owner of a tax lien certificate can extend the redemption to three years from the date of sale (Sec. 21-385). Special statutory redemption periods apply to vacant non-farm property or improved properties with 7 or more residential units or that is commercial or industrial property, (six months). If on the date of sale the property sold was improved with a structure consisting of at least one and not more than 6 dwelling units it may be redeemed at any time on or before the expiration of (2 years and 6 months) from the date of sale (Sec. 21-350).

Deed Assigned at Foreclosure to: The Tax Lien Certificate holder (Sec. 21-205).

Notes:

Counties:

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Comments:

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