All Forum Posts by: Emmett R. McCarthy

IL tax liens are a priority lien versus other liens. If the LP is for a mortgage foreclosure, the tax lien has priority. If the LP is for an earlier tax sale, the tax sale has priority over the later tax lien you would be buying, but that doesn't mean they would necessarily proceed on that tax lien. They may seek a sale in error refund or just let it die. 

In order to clean up any title issues, consider buying the tax certificate from the tax buyer and getting a tax deed rather than dealing with deeds, warranty or quit claim (perfectly fine to convey interests in property just without any warranties) and then redeeming the tax sale. 

Because the loss to owner is generally to their largest asset and the gain to the tax buyer is generally a windfall, courts usually put the burden on the tax buyer. Considering how easy it is to find people (public records, skip traces, etc.", the burden is minimal. 

It depends on the jurisdiction amd the applicable law. I have litigated this issue on the half of interested parties as well as tax buyers and it always comes down to the law of that state.  In Illinois for example, actual notice is not required but the tax buyer must be diligent in its attempts to locate and serve parties with an interest in the property. 

1.  The redemption period for Illinois tax sales depends on the number of years delinquent and the type of property. Generally, residential properties have a 2.5 year redemption. If  The tax buyer has strictly complied with the Illinois property tax code, they can get possession about a month or two after the redemption period has expired.

2.  Who pays the taxes, whether current or delinquent, depends on the purchase contract. 

3. As Ned pointed out above,  there are many reasons a property can be held in trust. You did not indicate whether it's a living trust or a land trust. Land trusts are generally used in Illinois to hide ownership and make it easier to change ownership (the beneficiaries) rather than having to deed it. 

Thanks. 

One thing to look into is whether the jurisdiction allows for a return of your money in certain situations. Illinois has a "sale in error" statute that allows refunds in many situations that may be considered "horror stories."

Sorry, my previous post had a BP error. 

 IL has three types of tax sales and varying penalty rates and rates of return on subsequent years' taxes (12% per year or part thereof).

Moderator note: self promotion removed.

Sounds good, let me know the PIN and I can tell you a lot about the tax sale issues. Thanks.

You cannot negotiate the redemption amount once the taxes have been sold. Depending on the status of title, however, you might be better off buying the tax certificate from the tax buyer (usually the current redemption amount plus a premium) and seeking a tax deed. Tax deeds in IL wipe out prior liens including mortgages) and convey "new and merchantable title." I handle these types of deals for clients on a regular basis.

IICLE is a tool among many.