All Forum Posts by: Emmett R. McCarthy

The Cook County Property Tax Portal and the County Clerk's Delinquent Property Tax Search provide different types of information. That being said, both sites have disclaimers at the bottom re: they are not the official records. As I always tell clients, the online information should be used as a tool but not as the "official" records. I am frequently retained for the purposes of giving clients an objective analysis of the tax situation on various properties and then guiding them through the process, whether they are investors, property owners, mortgage companies or title companies. Thanks for asking and good luck!

Pull a copy of the IRS lien from the local county recorder. The lien may have expired per its own terms. When title cos. are uncertain about a potential lien on property, they usually just list it as an exception on the title policy so you are back to square one. It's usually quicker to get the answer yourself so you can convince the title co. to clear the exception. Good luck!

If you are interested in IL tax liens, I'm happy to help. IL annual tax sale bidding starts at 18% penalty rate per 6 months and can go as low as 0%. The tax buyer has the right to pay and post subsequent years' taxes at 12% per year or part thereof (meaning the full 12% accrues on day 1, 24% on day 1 of year two, 36% on day 1 of year 2). IL tax deeds convey "new and merchantable title" without having to file a quiet title action. This is my primary practice area. Thanks and good luck. 

The redemption period depends on the type of property and the number of tax years delinquent. If it's a dwelling structure of 6 or fewer units, the initial redemption period is 2.5 years and can be extended by the tax buyer to 3 years. If you have gone thru the legal process (petition for tax deed, take notices, etc.), you can usually obtain your deed about 1-2 months after the redemption period expires. If you are going to be bidding at the 2014 Annual Tax Sale in 2016 and there are prior years, those prior years' taxes will be added to your tax sale and if not, they will be "merged" (wiped out) into your tax deed once you obtain and record your tax deed. If you want to find out the tax history, order a tax search from the Cook County Clerk or check the County Clerk's website online. Good luck.

You may want to contact/join the NTLA (National Tax Lien Association). They are a national organization that is very active in the tax lien field. They provide seminars, monitor legislation and specific court cases, etc. My law partner speaks at the seminars and has made many great contacts in the field. 

Many inexperienced tax buyers in IL don't realize that while the bid rates on the initial tax sale are typically low (0-5%), the penalty rate on subsequent years' taxes paid and posted by the tax buyer are 12% per year or part thereof. Therefore, if someone redeems the tax sale the day after a tax buyer pays and posts a surtax, the tax buyer has just made 12% interest. A year and a day later, the tax buyer would make 24% interest. Another thing to keep in mind is that only "police and welfare power" municipal liens must be paid before obtaining a tax deed in IL, other muni liens and judgments do not have to reimbursed and are the liability of the former owner not the tax buyer. I have many clients, both professional tax buyer and "mom and pop" tax buyers that are doing quite well investing in IL tax liens.

@Ryan Smith, not a problem. @Jerry K., thanks for pulling that info. It is very useful for potential tax sale bidders in Will County,

You can contact the county and ask about a hard copy of the list. Most counties are selling a digital copy of the list. The tax sale list must also be published in a newspapers in the county so you can just get a copy of that newspaper. As far as the bidding percentages, it's a matter of strategy and business plan. I am not as familiar with the penalty rates bid in Will County, but I can tell you in Cook County the bid rates are usually 0-2%. If tax buyers were to bid much higher they would not get any certificates. They plan to make their money on either paying and posting subsequent years' taxes or actually getting deeds. As far as the legal procedures for taking the certificate and turning it into a deed, it is too difficult to explain here, but keep in mind that the law is the same thought our IL with only small procedural differences in some counties. Any tax buyer in any county must "strictly comply" with the IL Property Tax Code. If not, then the court is likely to deny the petition for tax deed. I will send you my seminar materials regarding IL tax sales and tax deeds. Thanks for asking.

You are correct that you buy a tax lien, but ultimately a tax deed is issued that conveys new and merchantable title without the need for a quiet title action. Bidding starts at 18% per 6 months but can go as low as 0%. Subsequent years' taxes can be paid and posted by the tax buyer to the original tax sale and those have a penalty rate of 12% per year or part thereof. The tax sale procedures & notice provisions in IL are not that difficult to comply with if you have an attorney who is experienced in this area of law. The redemption period is generally 2 to 2.5 years and can be extended by the tax buyer up to 3 years. I have many clients getting tax deeds on a daily basis and are very happy with this investment strategy. 

Another way to get started in tax lien/tax deed investing is to buy a certificate from a professional tax buyer. I have been doing lots of deals where my clients purchase tax certificates where the redemption has expired and they are ripe to go to tax deed. My clients have been pleased with how quickly their purchase turns into a tax deed and they avoid paying transfer stamps. Good luck!