AA tax lien is issued by municipalities when a property owner fails to pay their property taxes. Delinquent property taxes may be auctioned off in a county tax lien sale. Tax liens accumulate penalties and interest and if left unpaid, the tax lien holder may go to deed on the property.
General FAQ
What is a Tax Lien?
If my taxes are sold at auction, how long do I have to pay back the tax lien holder?
State statute determines the payback period (also known as the redemption period) to remedy a tax lien position. In Cook county, the redemption period is a minimum of 2 years for commercial properties and a minimum of 2.5 years for residential properties with a maximum of 3 years regardless of property type.
If I purchase an expired tax lien, are all other liens extinguished?
A lien issued by a taxing authority has a super-priority lien with the possible exception of federal government liens such as those imposed by the Internal Revenue Service.
What happens to a mortgage associated with a property that has an expired tax lien?
Subject to valid service within each tax deed case, if the lender and all interested parties are served, the mortgage liens are extinguished with the issuance of a tax deed.
Is an attorney required to foreclose the right of redemption on a tax certificate?
Yes, in order to obtain a tax deed to the property, an attorney should be engaged. The tax deed process is intricate and Illinois property tax code requires strict adherence. Upon request, First National Assets will refer several attorneys who can assist with the foreclosure process.
If a property owner files bankruptcy, can an investor still obtain a tax deed to the property?
No, bankruptcy halts all foreclosure as long as the property itself is listed in the bankruptcy schedule.
How long after the redemption expiration date will it take to get a tax deed?
Once the tax case is presented in a court of law it usually takes about 60-90 days to record the tax deed successfully. Cases differ depending on court and judge schedules, as well as owner/lien holders appearances.
Should I invest in the tax lien assignment or the actual tax deed?
Both the tax lien assignment and tax deed investment have their benefits including cost savings, convenience and comfort level. Contact us for more information in regards to which investment is best for you.
For more information on how your local government can bridge cash flows and overcome budgetary shortfalls, please contact us at info@firstnationalassets.com