Resource Library · Updated July 2026
A federal judge found that Cook County's property tax sales illegally stripped homeowners of their equity. If you lost property — or the equity in it — through an Illinois tax sale or foreclosure, here is what's happening and how to check what may belong to you.
For decades, when Cook County property owners fell behind on property taxes, the county could sell the tax debt — and ultimately the property itself — through its tax sale system. If the property was worth far more than the unpaid taxes, the former owner typically lost all of it: the taxes owed and every dollar of equity above it.
In 2023, the U.S. Supreme Court decided Tyler v. Hennepin County: a Minnesota county seized a condo over roughly $15,000 in taxes and penalties, sold it for $40,000, and kept the difference. The Court unanimously said that violates the Fifth Amendment — the government may collect what it is owed, but the surplus belongs to the owner.
Illinois was slow to change its system. On December 8, 2025, Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois ruled that Cook County's tax sale system amounted to an unconstitutional taking of former owners' equity and violated the Eighth Amendment's ban on excessive fines. Rulings in 2026 have moved to what the county must pay. News reports describe a certified class of about 2,500 former owners with average claims near $60,000.
You may be affected if you (or a relative whose estate you represent) lost a Cook County property through the tax sale system and the property was worth more than the taxes, penalties, interest, and costs owed. Class membership, eligibility windows, and payment amounts are determined by the court and class counsel — not by any private company, including us.
Important: if you are in the certified class, you should not have to pay anyone a percentage to "sign you up." Be very skeptical of companies charging fees for class-action participation. Our honest advice: identify the case in news coverage, contact class counsel directly, and keep every letter you receive about it.
This ruling has put "the county owes people money" into the news — and it's true in more ways than one. There are two separate situations where a former Illinois owner may be owed money:
1. Tax sale equity (the lawsuit). Property lost over unpaid taxes. Compensation is being worked out in federal court through the class action described above.
2. Mortgage foreclosure surplus (claimable today). When a home is lost to mortgage foreclosure and sells at the judicial sale for more than the debt owed, the leftover money — the surplus — already belongs to the former owner or their heirs under Illinois law (735 ILCS 5/15-1512). It sits with the circuit court until someone claims it, and unclaimed funds eventually transfer to the Illinois State Treasurer. This is the money Lakeshore Asset Recovery helps former owners and heirs identify and recover, on a no-upfront-cost basis.
Many families touched by one have been touched by the other. If you're not sure which situation applies to you, a free records review can sort it out in minutes.
If you lost property to a Cook County tax sale: save any mail about the lawsuit, look up the case coverage, and contact class counsel. Do not pay anyone to "register" you.
If you (or a deceased relative) lost a home to mortgage foreclosure in Cook, Lake, Will, or McHenry County: the sale may have produced a surplus you can claim now. We check the records for free and tell you honestly what we find — including if the answer is "there's nothing there" or "you can easily do this yourself."
In December 2025, Judge Matthew Kennelly ruled that Cook County's property tax sale system violated former owners' rights under the Fifth Amendment (taking equity without just compensation) and the Eighth Amendment (excessive fines). In 2026 the court has been addressing what the county owes affected former owners.
Former Cook County owners who lost property through the tax sale system and lost equity above what they owed. Reported estimates describe roughly 2,500 class members with average claims around $60,000. The court and class counsel — not private companies — determine membership and payments.
No. Class members do not need to pay a private company to participate. Be cautious of anyone charging a fee to "register" you for a class action.
No. Tax sales involve unpaid property taxes and are the subject of the federal lawsuit. A foreclosure surplus is leftover money from a mortgage foreclosure sale — money former owners and heirs can already claim through the circuit court. That's the process we help with.
A free, no-obligation records review. No upfront cost — we're only paid if you recover.
