New Illinois Law · Applies in Lake County
Did you lose a Lake 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, and it covers Lake County. If you lost a property to a tax deed since July 2024 — in Waukegan, North Chicago, Zion, Round Lake, Antioch, Fox Lake, or anywhere in the county — the equity above your tax debt may now be recoverable. Claims are generally due by July 10, 2028.
You may qualify if…
- You owned a Lake County property that was lost to a tax sale / tax deed — not a mortgage foreclosure.
- The tax deed was recorded on or after July 10, 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 10, 2026, claims are generally due by July 10, 2028.
The new law covers Lake County
In July 2026, Governor Pritzker signed House Bill 4537 (Public Act 104-0553) into law — the biggest overhaul of Illinois' property-tax-sale system in decades. It brings Illinois in line with the U.S. Supreme Court's decision in Tyler v. Hennepin County: 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.
The law created a surplus equity fund in every Illinois county — including Lake County. If you were a previous owner who lost property through a tax deed, you can petition the 19th Judicial Circuit Court in Waukegan — the court that ordered the tax deed — 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.
This is not theoretical. Tax deeds have been recorded across the county in the qualifying window — Waukegan, North Chicago, Zion, Round Lake, Antioch, Fox Lake, Beach Park, Gurnee, and beyond. Many of those former owners have no idea the law changed.
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 by July 10, 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.
Lake County is not part of the Cook County class action
You may have seen news that Cook County was ruled liable for taking homeowners' equity. That federal class action (Kidd v. Pappas) covers Cook County owners only — Lake County owners are not included. For Lake County, the surplus equity fund petition created by the new law is the direct path to recovering lost equity. And either way, you never need to pay a private company to "register" you for any class action.
Frequently asked questions
Yes. The surplus equity fund is statewide — it exists in every Illinois county, including Lake County. Claims for Lake County properties are filed in the 19th Judicial Circuit Court in Waukegan, the court that ordered the tax deed to issue.
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 money the former owner is owed — Lakeshore helps with both in Lake County — but the tax-sale surplus equity fund is a brand-new, separate process created by HB 4537. If your home was lost to a foreclosure, see our Lake County foreclosure surplus guide.
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 Lake County, the 19th Judicial Circuit in Waukegan. For deeds recorded in the two years before July 10, 2026, the claim is generally due by July 10, 2028. For older tax certificates that deed out after July 10, 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.
If your property was in Lake County, no — the Kidd v. Pappas class action covers Cook County owners only. That's actually a reason to act: Lake County owners have no class action working on their behalf, so the surplus equity petition is the path to recovery, and nothing about a Cook County case will slow your claim down.
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. 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 parcel number (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
- → Illinois Surplus Equity Fund Deadline: How Long Do You Have to File?
- → Lake County Foreclosure Surplus Funds: How to Recover What You're Owed
- → Lost a Home in a Cook County Tax Sale? Claim Your Equity
- → Claiming a Deceased Relative's Surplus: A Guide for Heirs
- → How to Avoid Surplus-Recovery Scams