Homeowners in Illinois have probably noticed something startling over the past couple of years: their property taxes have been rising at an alarming rate. In fact, Illinois property taxes are the 2nd-highest in the country at 2.31% and are nearly double the national average. Typical Illinois homeowners pay over $4,000 per year, which can make quite an impact in everyday expenses — particularly for those living in Cook County; and with rising cost of living, wage increases lagging far behind, many homeowners see foreclosure looming as they struggle to pay property tax.
“While the regional cost of living has risen by 36%, property taxes across Cook County have increased by 99% between 2000 and 2019 – according to a new study from Cook County Treasurer Maria Pappas. Meanwhile, wages in Cook County have risen by 57% during the same period.” (Illinois Policy)
Note: This data is from 2018; the 2020 IL property tax rate is 2.31%. Chart courtesy of illinoispolicy.org.
In the past 19 years, Cook County property taxes have nearly doubled (99% increase), making things difficult for financially struggling homeowners. Now toss in the coronavirus pandemic, which has caused record unemployment and still ravages nearly every part of the economy. The result is more and more homeowners in Illinois becoming unable to pay their property taxes and other debts.
Getting another home loan or home equity line of credit (HELOC) is a risky move because it doesn’t actually absolve your debt, it merely worsens and prolongs it. But there are avenues you can take to pay down your debt without the threat of losing your home looming over your head.
Why Are Property Taxes So High in Illinois?
One of the reasons property taxes are so high in Illinois is that the state’s tax model is somewhat outdated. There are around 8,000 taxing authorities who collect $30 billion in property taxes each year. These taxes cover the expenses of local services and projects, city and county government entities, and school districts — a model that is seldom seen in other states.
“Specific tax rates in Illinois are determined based on the total tax base, or the total value of property with a district. In the second year of the property tax cycle each taxing authority determines its levy based on the tax base and the revenue it needs. Thus, rates change each year depending on property values and revenue needs (which are typically subject to voter approval).” (Smart Asset)
This means that the majority of property tax hikes haven’t been used to increase property values, but rather support government worker pensions, education, and city and village government.
Property Tax Solution: Home Buyback Program From SKYDAN Equity Partners
Property taxes in Illinois are so high that they almost become another line of debt for home and business owners. SKYDAN Equity Partners has a home buyback program that’s designed to help struggling homeowners pay down their debt, improve their credit score, and set them up for future financial success. Here’s how it works:
We buy your home and in return give you a large sum of cash, with which you pay off existing debts (back taxes, credit card debt, medical bills, etc.). You then lease the home back from us for up to 24 months with deferred rent payments. This means that while you’re leasing your home back from us, there are no monthly payments, no interest paid, and no added debt.
At the end of the 24-month period, you have two options:
- Purchase the home back (original price + deferred rent)
OR - Sell the property, keeping all additional equity
We don’t care about your credit score, employment history or debt-to-income ratio. We are here to help you break the cycle of debt, not add to it like traditional home loans do. Our home buyback program is an attractive option for tax lien relief. The only thing you need in order to qualify is having enough equity in your home.