COOK COUNTY TAX SALES
Under Illinois law, the Treasurer's Office is required to conduct two types of tax sales at which delinquent property taxes are sold: the Annual Tax Sale and the Scavenger Sale.
The 2011 Annual Tax Sale has been scheduled to commence at 8:30 a.m. on August 5, 2013. The Annual Sale will be conducted from 8:30 a.m. to 5:00 p.m. each day of the sale schedule. At the discretion of the Tax Sale Supervisor, these hours may be extended to accommodate tax buyers placing bids. The Annual Sale includes properties in Cook County eligible for sale due to delinquent Tax Year 2011 property taxes (including, without limitation, general property taxes, back taxes, etc.) and/or delinquent special assessments. A list of properties eligible for sale in the 2011 Annual Tax Sale will be published in community newspapers by township on June 5-6, 2013. Properties with delinquent taxes that are eligible for sale may be searched by Property Index Number (PIN) on theTreasurer's Office website.
Delinquency lists in electronic format will be available for purchase online at www.cooktaxsale.com (available June 6, 2013) via an ACH debit to a checking or savings account for the following amount(s):
After completing an ACH transaction, the list(s) can be downloaded.
The 2011 Annual Tax Sale will be conducted as an online internet-based sale at www.cooktaxsale.com. Registration, deposits of collateral, storing bids to be placed on the day of the sale, and payment of certificates can be made from any computer with access to the internet. However the final placement of bids can only be made from computers located in the Cook County Treasurer's Sale Room on the days of the sale. The Sale Room will be located in Room 112 (Randolph Street entrance) of the Cook County Treasurer's Office, 118 N. Clark Street, Chicago, Illinois.
For those individuals who do not have access to a computer for purposes of registration, deposits of collateral, storing bids to be placed on the day of the sale, and payment of certificates, computers with internet access will be available in the Sale Room for use during regular business hours (8:30 a.m. to 5:00 p.m.) and for Annual Tax Sale purposes only.
Registration for the Annual Tax Sale begins June 6, 2013. Registration is completed online at www.cooktaxsale.com (available June 6, 2013). You may register at any time between June 6 and July 26, 2013; provided, that your registration must be completed online and the requisite collateral deposit must be submitted to and received by the Cook County Treasurer's Office no later than 5:00 p.m. (Chicago local time) on July 26, 2013.
Properties offered at the Annual Sale shall be offered and sold on an "AS IS" basis. The subject parcel's PIN only, and NOT the common street address, describes the delinquent taxes offered for sale. Street addresses and/or property classifications appearing on the delinquency list are not guaranteed to be accurate. The Treasurer's Office does not assume any responsibility, implied or otherwise, as to the accuracy of street addresses and/or property classifications, or as to the legal status or physical condition of properties. It is the responsibility of each buyer to perform proper research to determine the property location, classification, nature, and condition of any property or improvements. ALL SALES ARE FINAL.
The complete rules and regulations governing the conduct of the 2011 Annual Sale can be found at www.cooktaxsale.com or obtained from the Cook County Treasurer's Office upon request.
OPPORTUNITY FOR SOME, TRAGEDY FOR OTHERS
The 2013 Scavenger Tax Sale is just months away and now is the time to get prepared for this enormous community investment opportunity. Once again the Cook County Treasurer will auction off thousands of tax delinquently properties to the highest bidder, more often then not for the minimum bid of $250. The Scavenger Sale is the most popular of several tax collection & enforcement procedures through which tax liens are sold to tax buyers. It is used as a sort of last resort effort to motivate owners of chronically tax delinquent (two years or more) to pay delinquent taxes with the threat of losing their property to tax buyers. The scavenger sale is a bi-annual sale of taxes on a property that is aimed at combating chronic tax delinquency. The taxes are sold for cash bids. Tax delinquency is on the rise again after a decade of decline. We saw tax delinquency significantly decrease as the real estate market rose to historic highest fueled by the new flood of capital in the real estate mortgage market. Then we saw tax delinquency further depressed by banks protecting their collateral during mortgage foreclosures.
Each year thousands of people lose their homes because they can not pay their ever increasing property taxes. The elderly, sick, unemployed as well as just plain ordinary folk are victims of a system that was designed to help finance local schools and government, not drive people out of their homes. The Real Estate Tax Institute (TRETI) through it’s Cook County Tax Relief Program (CCTRP) is offering real assistance to low-moderate income homeowners who by no fault of their own, are about to lose their homes for non- payment of property taxes. We believe no one should lose their home because they can’t afford to pay their taxes.
History tells us that the tax delinquency is a precursor to community abandonment. The economic recession has caused more and more property owners to fall behind on their property taxes. And tax investors across the country are stepping up in record numbers to take advantage of what many perceive as one of the best investment opportunities available today. The tax buyers take on these high-yielding investments with the hope of receiving interest payments if redemption occurs, often in excess of 36%. With interest rate at all time lows these returns are attracting more and more investors. But most scavenger sale buyers hope redemption does not occur, seeking title to the property automatically wiping out mortgages and all other liens. Tax deeds are issued free and clear of all liens and encumbrances. The idea is that tax sales give a property a fresh new start to encourage future tax payments.
The skyrocketing mortgage foreclosure rate has received lots of attention. We need to stop and think this thing through. People who are not making their house payment are probably not making their property tax payments. The tax lien foreclosure problem presents the owner with a much more difficult set of challenges than does mortgage foreclosure. For a significantly smaller liability the owner faces complete loss of any equity they may have accumulated. Mortgage foreclosure allows you to capture some portion of your equity. Interestingly enough many tax delinquent homeowners with 100% equity lose their homes for pennies on the dollar of fair market value. Mortgage foreclosure allows you a number of workout options. Tax lien foreclosure offers none. Title issues often interfere with borrowing efforts. Dysfunctional owners procrastinate to the last minute when it can often be too late to redeem or object to the issuance of a tax deed.
With the economy still faltering and the economic recovery significantly lagging in many minority populated communities, property values continue sinking, property owners are falling behind or abandoning their property.There is indeed a dark side of this business in that many homeowners lose their homes to investors, sometimes for as little as a few hundred dollars. Who are these tax buyers/investors? Who are these delinquent property owners?
Plymouth Park Tax Services, a subsidiary of JP Morgan Chase Bank is one of the largest players in the tax investment business. The scavenger sale gives smaller investors the opportunity to compete with the pros. Scavenger sale properties tend to have a much lower probability of redemption. Higher lien to value yet lower bids to value ( also tend to sell for a very low percentage of the delinquent tax amount). Scavenger Sale properties also tend to be located in distressed communities. The Annual Sale absorbs most of the properties located in “high investment grade” areas.
A list of 2013 Scavenger Tax Sale eligible parcels is currently unavailable. Typcially the official sale list is not available to the public until late November ( 30 days before the sale begins). It will be published in community newspapers by township. A complete list will be published in the Chicago Tribune and the Chicago Sun-Times. The list will be available for public inspection in the Cook County Clerk’s Office, Room 434 before the sale/during tax buyer registration.
TRETI will hold a series of seminars on how to become a successful and responsible tax buyer. For more information on the tax sale process, tax sale registration and seminar attendance contact The Real Estate Tax Institute at firstname.lastname@example.org or email@example.com . You can also call Gregory Allen Mannie CPA at 312-912-7955.
2013 Scavenger Sale
Under Illinois law, the Treasurer’s Office is required to conduct a Biennial Scavenger Sale (conducted in odd-numbered years). The sale must begin in 2013 and the Treasurer usually waits until the last day of the year.
The 2013 Scavenger Sale, on which property taxes for two or more years are listed as delinquent and subject to sale, has not been scheduled yet, however historically the Treasurer usually waits until the last day of the year. Therefore, we expect it will commence on or about December 30, 2013. It will be conducted from 8:00 a.m. to 2:00 p.m. each scheduled day. Seat selection is first-come, first-serve. At the discretion of the Treasurer’s Office, these hours may be extended or shortened to accommodate the sale schedule.
The sale is normally conducted in the Lower Level Auditorium of the Juvenile Detention Center located at 1100 South Hamilton, Chicago, Illinois.
This sale includes all eligible properties in Cook County with two or more delinquent tax years from 1993 through 2011. A list of tax-delinquent properties will be published in community newspapers by township.. Additionally, a complete listing will be published in the Chicago Tribune and Chicago Sun-Times. Lists of these properties will be available for inspection or purchase at the Cook County Treasurer’s Office in the County Building at 118 N. Clark Street, Chicago, Illinois, Room 112, beginning December 2013. Lists of properties will also be available for inspection in the Cook County Clerk’s Office, Room 434.
The Delinquent Tax List will be available for purchase December 2013, in paper form or CD, for $250. Payment must be made in Room 112 of the Treasurer's Office. The purchaser will be provided with a receipt, and then must bring the receipt to the Tax Sale Department, Room 112, to receive a copy of the list.
Registration for the sale will begin early December 2013 There is a non-refundable $100 Registration Fee required for each buyer to participate in the Scavenger Sale. Payment must be made in Room 112 of the Treasurer’s Office. There, you will receive a receipt that must be presented when submitting registration forms to Tax Sale Department in Room 112 of the Treasurer’s Office. The fee is strictly for registration and will not be applied to any successful bids.
All payments for anything connected with the 2011 Scavenger Sale must be made using certified or cashier’s check, money order, or cash. No business or personal checks or credit cards will be accepted. Checks must be in the exact amount of the payment due. No change will be made on a non-cash transaction. During the sale, each buy sheet must be paid with a separate cashier’s or certified check or money order in the exact amount required for that buy sheet.
Properties, on which delinquent tax liens will be sold, are sold AS IS. The delinquent taxes on the parcels offered for sale are described solely by their Property Index Number (PIN), and NOT the common street address. The Treasurer’s Office does not assume any responsibility, implied or otherwise, as to the accuracy of street addresses and/or property classifications, or to the legal status or condition of the properties. It is the responsibility of each buyer to research the property location, classification, nature and condition of any property or improvements prior to the sale. All sales are final.
COOK COUNTY SCAVENGER SALE REGISTRATION
Rules, Regulations & Registration Materials for the 2011 Cook County Scavenger Sale can be downloaded by clicking the following link:
Sample Registration Package 2011 Scavenger Sale Download