The ongoing issue of property tax foreclosures in Illinois epitomizes growing concerns about equity loss among homeowners in the state. A recent investigation highlights that since 2019, over 1,000 homes have been seized for tax debts often as low as $200 to $1,600. The state’s practice of permitting private investors to purchase tax liens has resulted in a staggering $108 million loss in equity for families; investors capitalize on this by keeping not only the owed taxes but also any additional home value. This systemic flaw raises questions on the accountability of tax collection methods and the implications for homeowner rights in Illinois.

Key points of concern include:

– **Unconstitutional Seizures:** A Supreme Court ruling emphasized that governments cannot keep more than the owed amount when seizing property for tax debts, yet Illinois continues this practice.
– **Private Investor Involvement:** Counties sell tax liens to private equity firms, enabling these investors to foreclose homes and retain all equity.
– **High Tax Burden:** Illinois has the highest property tax burden in the nation, leading many homeowners to default on payments and resulting in significant numbers of residents relocating out of state.

You can read this full article at: https://papersourceonline.com/how-one-state-is-unlawfully-stripping-wealth-from-homeowners/(subscription required)

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