Illinois Tax Sale
Please help, I am going to a tax sale in Illinois this Monday and need advise. What happens if I purchase the taxes at a low interest rate, and then the owners pay next years taxes, never sell the property or refinance to close the lien? How long could I possibly have to wait to get a return on my investment?
Thanks 
The interest rate will multiply every six months if it not redeemed, i.e. you bid 2% and got the lein. First six months redemption will be 2% + all costs of the lein, 6-12 months will be 4% + all costs of the lein, 12-18 months will be 6%, you get the idea.
With tax leins, you don't hold the lein until the property is sold and collect then. You have foreclosure right. The redemption period varies with what type of property you hold the lein on, and also whether you grant the 6 month extension. It's anywhere between 2-3 yrs. Near the end of the redemption period you file a petition in the court for the issuance of a tax deed. You must pay all other backed taxes, etc. if there are any.
When/if the deed is issued, you own the property. The deed will wipe out most other leins.
But remember, you must follow the notification and publication requirements as set by the state statute.
I hope I answered your questions. If you haven't looked at the Illinois Compiled Statutes you really should. Just do a search for 'Illinois Compiled Statutes," they will tell you everything you need to know.
Thanks for the fast reply, but still have one question.
If I win the bid on last years taxes and then the owner starts paying next years taxes on time, I know I will gain interest but what if the property has been in the family for 50 years and they never sell to satisfy the lien? How do I get my investment back? I have read the Illinois Law, very confusing, but have read it.
Do I just have to wait maybe 50 years for them to maybe sell in order to wipe that lein off?
Thanks, sorry I'm just confused on this one issue.
Thanks for the fast reply, but still have one question.
If I win the bid on last years taxes and then the owner starts paying next years taxes on time, I know I will gain interest but what if the property has been in the family for 50 years and they never sell to satisfy the lien? How do I get my investment back? I have read the Illinois Law, very confusing, but have read it.
Do I just have to wait maybe 50 years for them to maybe sell in order to wipe that lein off?
Thanks, sorry I'm just confused on this one issue.
Thanks for the fast reply, but still have one question.
If I win the bid on last years taxes and then the owner starts paying next years taxes on time, I know I will gain interest but what if the property has been in the family for 50 years and they never sell to satisfy the lien? How do I get my investment back? I have read the Illinois Law, very confusing, but have read it.
Do I just have to wait maybe 50 years for them to maybe sell in order to wipe that lein off?
Thanks, sorry I'm just confused on this one issue.
I can relate to statutory law being confusing, it always is.
I have no idea why the original owner would only pay current taxes and not back taxes?? The owner does not have to sell the property for you to get your money and interest from the lein, even if they have paid the current taxes BECAUSE at the end of the redemption period(from date of original sale) you can get the deed to the property, meaning you OWN it, regardless if they have paid the current taxes or not. THAT is the motivation for the landowner to actually pay the lein(taxes), the possibility of losing right of ownership. The landowner doesn't actually send you a check, they will pay the county, who in turn will cut you a check for the lein amount+interest.
If current taxes are paid, but the ones aren't for which you have the lein, that's less money that you will have to pay in order to get the right to ownership (DEED). But again, I don't see how anyone in their right mind would keep backed taxes deliquent while they pay current taxes.
Anyone else have input?????
If the owner pays next years taxes and does not pay the back taxes that you bought at sell then they will lose to house. Buy taxes wait 3years, if they don't pay, the home is essentially yours!
Good luck
[addsig]
Thank you so very much for all your answers, I was confused I thought that I have to pay the taxes for the
2-3 years and then be able to file for deed, I didn't realize that even just one year unpaid I could file. Thanks, I'm a first timer and I am going for it at the sale this week, I hope the big guys don't pound me in the ground!!
Thank you so very much for all your answers, I was confused I thought that I have to pay the taxes for the
2-3 years and then be able to file for deed, I didn't realize that even just one year unpaid I could file. Thanks, I'm a first timer and I am going for it at the sale this week, I hope the big guys don't pound me in the ground!!
Thank you so very much for all your answers, I was confused I thought that I have to pay the taxes for the
2-3 years and then be able to file for deed, I didn't realize that even just one year unpaid I could file. Thanks, I'm a first timer and I am going for it at the sale this week, I hope the big guys don't pound me in the ground!!