What Happens When You Fall Behind on Property Taxes in Illinois
Illinois doesn’t waste time when it comes to unpaid property taxes. Once you fall behind, your tax debt becomes a public record. The county has the legal right to sell your delinquent taxes to investors through an annual tax sale.
That’s right, someone else can pay your taxes and charge you interest until you pay them back. If you don’t? You risk losing the title to your property altogether.
Timeline of a Tax Delinquency in Illinois
- First missed payment: Late fees and penalties begin to accrue immediately.
- After 6 months to 1 year: Your county can auction off your tax debt in what’s called a "tax sale."
- After the tax sale: The winning bidder gets a "Certificate of Purchase."
- Redemption period begins: You usually have 2.5 to 3 years to pay back what you owe (plus interest and fees).
- After redemption period ends: The investor can petition the court for a tax deed, which means you lose the house.
Each county can have slightly different procedures, so always verify with your local tax authority.
See What Homeowners in Chicago, Illinois Are Saying
We’ve guided countless homeowners in Chicago, Illinois to sell their homes quickly and hassle-free. See what they had to say about working with Windy City Home Buyer:
Tomas made buying our first home a smooth and stress-free experience. He was knowledgeable, thorough, and down-to-earth—highly recommended!
Rima Paulius
Tomas guided us seamlessly through the process of finding and purchasing our dream home. His communication was top-notch, and we felt confident every step of the way!
Donnamarie Martin
We sold our first home through Windy City, and Tomas was fantastic! He listened to our concerns and made sure the process went smoothly. Highly recommend!
Suza Semilla
Get Your Free Cash Offer Now!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
How Long Do You Have Before Losing the House?
In most Illinois counties, you have a 30 to 36-month redemption period. That might seem like a lot of time, but interest accrues fast and the longer you wait, the harder it gets.
The interest rate is 12% every six months on the delinquent taxes. That’s 24% a year. Plus, additional fees from the tax buyer and legal costs can stack up quickly.
So while you technically have a few years, the financial pressure builds fast.
What Are Your Options Before the County Takes Your Home?
If you’re behind on property taxes in Illinois, here’s what you can do right now:
1. Redeem the Property
Pay the full amount of delinquent taxes, interest, and fees before your redemption period ends. This clears the Certificate of Purchase and stops foreclosure.
How to redeem:
- Contact your County Clerk’s Office
- Request a "Redemption Calculation Statement"
- Pay the full balance using certified funds
If you can afford it, this is the cleanest solution. But for many homeowners, it’s out of reach without help.
2. Apply for a Property Tax Exemption (If Eligible)
Some Illinois homeowners may qualify for a reduction or exemption in property taxes:
- Senior Citizens Homestead Exemption
- Disabled Persons’ Homestead Exemption
- Veterans with Disabilities Exemption
- Low-Income Senior Citizens Assessment Freeze
These programs won’t erase past-due taxes, but they can make future bills more manageable. Apply through your local assessor’s office.
3. Set Up a Payment Plan with the County
Some counties in Illinois offer installment plans for back taxes. These aren’t always advertised, so you’ll need to ask directly.
Keep in mind:
- Not all counties offer payment plans.
- You’ll still be on the hook for interest.
- You must stick to the schedule or risk immediate foreclosure.
If you’re already managing rental property, be aware that some homeowners choose to sell when the cost of late taxes combines with other issues. Tenant damage can turn a small problem into a financial burden.
Understanding your full property taxes as a homeowner can also help you plan better and avoid falling into delinquency.
4. Refinance Your Mortgage (If You Still Have One)
If you have equity in the home and your credit isn’t too damaged, refinancing might allow you to roll the tax debt into a new mortgage.
But this option only works if you still have a lender and your property hasn’t been sold at a tax sale.
In cases where the property is located in an HOA, recurring fines and dues can make the tax situation worse. Selling your house with HOA issues may offer a quicker way out.
5. Sell the Property Before the County Takes It
If you can’t afford to pay the taxes and you’re running out of time, selling the property is often the smartest move.
Selling your house fast for cash can:
- Stop the tax deed process
- Put money in your pocket
- Save your credit
- Prevent a foreclosure record from following you
You don’t need to fix up the house or pay agent fees. A cash buyer will purchase the home as-is, even if it's behind on taxes, in probate, or inherited.
Learn how How Our Home-Buying Process works
What Happens if You Don’t Act?
If you ignore the tax debt, the redemption period will eventually expire. At that point:
- The tax buyer petitions the court for a tax deed
- The court transfers ownership to the tax buyer
- You receive a Notice of Eviction
- You are legally forced to vacate the property
Worse? You don’t get any proceeds from the transfer. The buyer keeps your house, and you walk away with nothing.
That’s why acting early is critical.
What If the Property Has Already Been Sold at a Tax Sale?
It’s not over yet.
If your taxes were sold at auction, you still have time during the redemption period to reclaim your house.
Here's what to do:
- Look up your Certificate of Purchase on your county's website.
- Contact the County Clerk for your redemption amount.
- Make a plan to pay it before the deadline.
You can still sell the home during this time, too. Many investors will buy homes that have delinquent tax liens, especially if there’s equity.
You also have more flexibility than you might think. Selling without a realtor can speed up the process and cut down on closing delays.
And for anyone facing serious risk, knowing the foreclosure process gives you a clearer sense of when to act.
Can You Sell a House with a Tax Lien in Illinois?
Yes, you can sell a house with back taxes in Illinois. But the lien must be paid off at closing.
That’s why many motivated sellers choose cash buyers. A professional home buyer can:
- Pay off the tax lien directly
- Cover closing costs
- Close in as little as 7 to 10 days
You walk away without the debt, the stress, or the foreclosure record.
This is a good option if:
- You inherited a property with back taxes
- You’re already in the redemption period
- You can’t afford to redeem it on your own
- You don’t want to risk losing it for nothing
Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
What to Do Now if You’re Behind on Property Taxes in Illinois
Here’s a practical checklist if you’re behind on property taxes:
Call your County Clerk or Treasurer to check if your taxes have been sold
Ask for your "Redemption Statement"
Find out when your redemption period ends
Ask if a payment plan is available
Consider selling the home before time runs out
And if you're considering a fast sale, make sure to work with experienced Illinois cash buyers who know how to handle tax liens.
Don’t Wait, Act Before the County Does
If you’re behind on property taxes in Illinois, time is not on your side. The longer you wait, the fewer options you’ll have. But if you act now, you can still:
- Save your house
- Sell for cash
- Stop the foreclosure process
Want a fair all-cash offer for your Illinois home? Sell your house fast in Illinois and get your fair cash offer today.
Have questions? Contact us today to speak with someone who’s helped hundreds of Illinois homeowners avoid tax foreclosure..