Local leaders in Illinois are petitioning the Statehouse to close a loophole that allows for “Profiting off of Blight”.
Recent article discusses some purchasers of tax liens, “after four years they take steps to void the deal thanks to what’s called a “sale in error loophole.” The tax buyer essentially returns the rights they have to the deed, and in turn gets all their money they initially spent on the taxes, plus interest. State law allows those interest rates to go up to nine percent. After four years, that can amount to up to a 41 percent profit”
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WCIA: Profiting off of blight: Loophole in state law incentivizes leaving properties abandoned