Tax Deeds Require Attention to Detail!

If you purchased a property at a tax sale, make sure you give all required notices, or you could be denied your tax deed when the time comes!  That’s exactly what happened in In re Application of the County Treasurer and Ex Officio County Collector of Cook County, Illinois v. OneWest Bank, 2011 IL App (1st) 101966 (August 25, 2011) Cook Co., 4th Div.

In that case, a homeowner owned a two-flat in the southwest side of Chicago.  She failed to pay $1383 in real estate taxes.  Ridge TP, LLC purchased the homeowner’s taxes at public auction.  However, when it came time to petition for the tax deed, the court denied Ridge TP, LLC.  The court determined that the proposed tax deed purchaser had not sent the notice of redemption period properly, nor had they exercised proper due diligence in serving notices.  Specifically, the proposed tax deed purchaser had not notified the servicer for the lender who had loaned money for purchase of the property.  Since all parties having any interest in the property must receive notice, the proposed purchaser’s tax deed was denied.  

Tax sales are very technical.  When you obtain a tax deed, you are essentially taking over a property from the owner, the lender, and possibly an association.  If the letter of the law is not followed, courts will deny a tax deed in order to protect other parties’ interests in the property!