Illinois is now the last state to ban home equity theft. Lawmakers passed a bill stopping government seizure of full properties for unpaid taxes. Governor Pritzker signed it into law on July 10.
Illinois has long allowed local governments to seize entire properties when owners failed to pay property taxes. Even if the unpaid amount was small, the state could sell the home and keep all proceeds. This led to many cases where people lost homes worth much more than their debt. Three years ago, the US Supreme Court declared this practice unconstitutional.
Lawmakers in Illinois took time to respond but finally passed a bill to fix the issue. The new law limits what the government can take to cover only the taxes due plus costs. Homeowners will now retain any remaining equity in their property. This protects families and prevents sudden loss of wealth built over years.
Governor J.B. Pritzker signed the measure on July 10, making it effective immediately. Illinois becomes the final state to comply with the court decision. Supporters believe the change promotes justice and safeguards property rights for all residents. It ends a system that many viewed as taking advantage of vulnerable homeowners.
Original Author: Joe Tabor | Source: FEE
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