New Illinois Law · Updated July 2026
Did you lose a Cook County home in a tax sale? You may be owed the equity you lost.
For decades in Illinois, falling behind on property taxes could cost you your entire home — a tax buyer kept all of its value, far beyond what you owed. A new law changed that. If you lost a Cook County property to a tax deed since July 2024, the equity above your tax debt may now be recoverable — but a claim deadline applies.
You may qualify if…
- You owned a Cook County property that was lost to a tax sale / tax deed — not a mortgage foreclosure.
- The tax deed was recorded on or after July 11, 2024, or an older tax certificate is only now becoming a deed.
- The home was worth more than the taxes, penalties, and liens owed when it was taken.
- You are the former owner, an heir, or the estate of the former owner.
- A deadline applies — for homes lost in the two years before July 11, 2026, claims are generally due by about July 2028.
What changed in July 2026
On July 11, 2026, Governor Pritzker signed House Bill 4537 into law — the biggest overhaul of Illinois' property-tax-sale system in decades. It finally brings Illinois in line with the U.S. Supreme Court's 2023 decision in Tyler v. Hennepin County, which held that when the government takes a home over unpaid taxes, it may keep only what it is owed. The rest of the equity belongs to the owner.
To make that right going forward, the new law created a surplus equity fund. If you were a previous owner who lost property through a tax deed, you can petition the court for the equity you lost — the property's value at the time of the tax deed, minus the taxes and penalties owed and minus any mortgages or liens.
Why acting now matters
The law sets a claim deadline. For homes lost in the two years before the law took effect, claims generally must be filed within two years of July 11, 2026 — roughly by July 2028. Valuing the property, documenting liens, and preparing a court petition all take time, so the sooner your situation is reviewed, the better. Waiting can mean losing the right to claim at all.
How Lakeshore helps
We do the legwork most people don't have time for: confirming whether your former property went to a tax deed in the qualifying window, estimating whether real equity is likely after taxes and liens, gathering the records, and coordinating the court petition with a qualified attorney. You pay nothing up front — we're only paid if you recover, and any fee is spelled out in writing before you agree to anything. If there's nothing there, we'll tell you that too.
Tax sale vs. the class-action lawsuit — two different things
You may have seen news that Cook County was ruled liable for taking homeowners' equity. That's a federal class action (Kidd v. Pappas), handled by class counsel and supervised by the court. The surplus equity fund on this page is a separate state claim process created by the new law. A recovery in one can reduce what you receive from the other, so which path fits your situation matters — a free review helps sort out where you stand. Either way, you never need to pay a private company to "register" you for the class action.
Frequently asked questions
No. A tax sale happens when property taxes go unpaid and a tax buyer acquires a lien that can ripen into a tax deed. A mortgage foreclosure is about an unpaid home loan. Both can leave surplus money the former owner is owed — Lakeshore helps with both — but the tax-sale surplus equity fund is a brand-new, separate process created by HB 4537.
The award is based on your property's value when the tax deed was issued, minus the taxes and penalties owed and minus any mortgages or liens. If liens ate up most of the value, there may be little to recover; if you had real equity, it can be substantial. A free review tells you which side of that line you're likely on before you spend any time or money.
A previous owner who lost equity through a tax deed petitions the court that ordered the tax deed. For deeds recorded in the two years before July 11, 2026, the claim is generally due within two years of that date — about July 2028. For older tax certificates that deed out after July 11, 2026, the claim is generally due within two years of the deed being recorded. Exact eligibility and deadlines are set by the statute and the court.
Nothing up front. We're paid only if you recover, and the fee is in writing before you agree. You can also pursue a claim yourself through the court at little or no cost — we're an option, not the only path.
No — you can file the petition yourself in the court that ordered the tax deed, under standard civil procedure. Because awards turn on valuation evidence and the Treasurer can contest values, many claimants choose to use an attorney. Lakeshore is not a law firm; we gather the records and coordinate with qualified attorneys, with no upfront cost. See the step-by-step claim guide.
Generally yes, through the former owner’s estate — typically with probate or heirship documentation. The estate path has extra steps, so legal advice is wise. We help heirs assemble the deed, sale, and heirship records at no upfront cost.
The property address or PIN, proof you owned the property, mortgage or lien payoff information, and — for heirs — a death certificate plus heirship papers. A free records review can pull the deed and sale records for you.
Related guides
- → How to Claim the Illinois Surplus Equity Fund, Step by Step
- → Am I Owed Money From a Cook County Tax Sale? How to Find Out
- → Cook County's Tax Sale Was Ruled Unconstitutional: What It Means
- → What Are Foreclosure Surplus Funds in Illinois?
- → Claiming a Deceased Relative's Surplus: A Guide for Heirs
- → How to Avoid Surplus-Recovery Scams