SPRINGFIELD — Illinois is taking steps to prevent homeowners from losing all home equity they’ve built to a predatory property tax sale, thanks to legislation backed by State Senator Celina Villanueva that was signed into law Friday.

“Families across our state have been experiencing some very challenging times,” said Villanueva (D-Chicago). “Instead of punishing families who are in financial distress, we have an opportunity to transform the property sale system for the better by placing fairness at the forefront.”

Thousands of homeowners in Cook County are behind on their property taxes, placing them at risk of losing their residences during a tax sale. In many of these cases, homeowners owe less than $1,000. However, the tax sale practice doesn’t return surplus equity to homeowners once a sale is complete – raising questions about constitutionality and fairness. In current practice, investors who buy houses at tax sale auctions are able to keep the excess value of the home beyond what the taxpayer owed in taxes – effectively seizing equity the homeowner built. This practice punishes the most vulnerable homeowners, including seniors and low-income families.

Acknowledging this system isn’t working as intended, House Bill 598 would push the start date of the annual property tax sale process back from March 10 to Dec. 1, 2026. Delaying the start date aims to give Illinois more time to address issues with the Cook County property tax sale system and ensure taxpayers’ rights are being upheld.

“No one should lose the home they’ve worked to stay in for decades because they were struggling to pay their property taxes,” said Villanueva. “By stopping the clock on the tax sale process for this year, we’ll be able to take a better look at the problems with the system and come together around solutions.”

House Bill 598 was signed into law Friday and takes effect immediately.