Illinois Ends Home Equity Theft Three Years After Supreme Court Ruling

Illinois Governor J.B. Pritzker signed a bill ending the practice of home equity theft, where local governments seized homes over property tax debts and kept all sale proceeds. The law ensures homeowners receive surplus proceeds from tax sales and provides compensation for past victims. This follows a May 2026 federal ruling that Cook County was liable for constitutional violations, and a unanimous 2023 Supreme Court decision in Tyler v. Hennepin County that declared the practice unconstitutional under the Fifth Amendment's Takings Clause. The Pacific Legal Foundation noted that thousands of Illinois homeowners lost an average of 85% of their equity, totaling over $303 million, due to the former law.