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Understanding Section 8 in tax deed foreclosures

On Behalf of | Aug 6, 2024 | Tax Lien Foreclosure |

Tax deed foreclosures in Illinois can be complex, with various legal provisions involved. One such provision is Section 8. Understanding what it entails in the context of tax deed foreclosures is crucial. 

The tax deed foreclosure process

The tax deed foreclosure process begins when a property owner fails to pay property taxes by the due date. A buyer can receive a tax lien certificate, which gives them the right to obtain ownership if the original owner does not redeem the property. This process can take several years, during which the property owner still has the chance to pay the overdue taxes and keep the property. 

How Section 8 factors into the process

Section 8 provides a redemption period during which property owners can pay the delinquent taxes, interest, and any additional costs to reclaim their property. In Illinois, the redemption period typically lasts 2.5 years after the tax sale, per 35 ILCS 200/21-350

If the property owner pays the necessary amount within this period, they can stop the foreclosure process. However, if they fail to do so, the buyer can petition for a tax deed, gaining ownership of the property. 

What happens after the redemption period

After the redemption period ends without payment, the tax lien certificate holder can apply for a tax deed. They must meet all obligations and requirements to receive the deed. This document officially transfers the property title to them, completing the foreclosure. Once the county issues the deed, the previous owner loses all rights to the property. 

Taking charge of your property’s future

By staying informed and keeping track of deadlines, you can better manage potential financial risks and make informed decisions about your property. With careful planning and attention, you can prevent future issues and maintain the security of your investment.