Attorneys At Law

Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Attorneys At Law - Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Illinois Underwater Homes Trap Homeowners in Place

DuPage County Property

Illinois home values in some areas have never fully recovered from the real estate market crash, trapping some homeowners in houses that they are ready to move out of.

 

Trapped in their underwater mortgages

For example, Steinar Andersen of Huntley Illinois is ready to move out of the state. He is a disabled veteran who cannot work because of service-related injury who still owes $187,000 in principle on his home.

“We really should be living in Arizona as it is more “disability friendly” and the property taxes are much less,” he said. He can’t though because he is so far underwater on his home loan.

Another example is Collen Percy and her recently retired husband, currently living in Plainfield.

“We’re stuck,” she said. “We would love to sell and go live in a smaller home so we don’t have the upkeep and tax burden.”

Unfortunately, they are $85,000 underwater on their suburban Plainfield home. They’re concerned that rising property taxes are further eroding their home’s value, pushing the opportunity to sell even further into the future.

Related: High Property Taxes Sending Illinois Homeowners Towards a Cliff 

 

Illinois has the highest rate of underwater homes

Edge of CliffA study of negative equity by real estate site Zillow found that nationwide, less than 10% of homeowners have negative equity in their homes.

In Illinois however, 16.4 percent of homeowners owe more on their mortgage than their home is valued at. Nationally, only the State of Louisiana had a higher rate.

In Chicago, the negative equity rate is at 20%, overtaking Las Vegas as the city with the highest negative equity rate in the nation.

 

Difficulty selling

The combination of negative equity and high property taxes can mean homeowners who want to relocate can’t actually sell their homes.

“It makes it difficult to move for a new job opportunity to relocate elsewhere,” Zillow economist Sarah Mikhitarian said.

The high property tax rates in Illinois serve to help slow or decrease the value of homes.

Related: Illinois Has Second Highest Property Taxes in Nation

Home prices in Illinois, while up since 2013, are still down 10 percent compared with the market peak in 2006, according to data from the Federal Housing Finance Agency.

Illinoisans need reforms to make owning a home more affordable, and staying in or moving to the Land of Lincoln more attractive.

 

 

You may call The Law Offices of Lora Matthews Fausett P.C. with your questions:  630.858.0090


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


How Illinois Property Taxes are Calculated

How Illinois property taxes are calculated and their affect on home values

Illinois homeowners pay the second-highest property taxes in the nation according to real estate data company Attom Data Solutions.

Most people will tell you they think their taxes are too high, and now you have the confirmation. Only residents of New Jersey pay higher property taxes than Illinois, with Vermont, Texas, and New Hampshire not far behind.

Of course, property taxes are essential to maintaining government services such as public schools, water lines, sewers, roads, infrastructure, parks, and libraries.

It’s not out of line though to wonder if they’are worth it.

In this post, we discuss how property taxes affect your return on home ownership and how property taxes are calculated in the state of Illinois. The method of calculation may surprise you.

 

How property taxes affect homeownership returns

  • Property taxes affect home values
  • Property taxes siphon off money that would be spent building equity
  • Second-highest cost of homeownership
  • Home appreciation prices are held in check by property taxes
  • High property taxes don’t see home values rise as quickly

Your property taxes affect home values and take away money that you could potentially spend on home improvements, paying off your mortgage sooner and building equity.

Property taxes are the second-highest cost of homeownership after your mortgage. They are a key indicator of profitability for real estate investors.

Home appreciation prices are held in check by property taxes. This can be both a benefit or a hindrance. In high-tax states, home prices don’t rise as quickly during a housing boom because people have to pay for those higher values through taxes.  On the potential upside, those same markets are somewhat more protected from wild price swings.

 

How property  taxes are assessed

Most people assume that property taxes are based on the assessment of properties.

Your property tax bill actually starts with how much the county, municipality, and taxing districts (school district, park district, library district, etc.) expect to spend.

The various taxing bodies figure out their budget based on the prior year’s budget plus an annual increase. They then figure out home much money they can expect from the state, assess the current taxable value of the property in the districts, and then the county clerk figures out the tax rate.

The county clerk calculates the tax rate based on the amount that the taxing districts are allowed to receive reconciled with the assessed property value.

In other words, taxes are based on how much they expect to spend, based on what they can get.

This can be very confusing because it is the opposite of how income taxes work. With income taxes, the more you make, the more you pay. But when your property value goes down, it doesn’t mean your property taxes go down.

 

Disputing your property tax assessment

If you think you are paying too much in taxes because your own property is not worth as much as the assessor thinks it is, you need to protest the specific assessment.

You will need to provide evidence that your property is not worth as much as the assessor thinks it is. This may include property sizes, home upgrades, location, and other factors.

There is also a time limit as to when you can contest your assessment.  For example, in DuPage County, the period during which an appeal may be filed ends thirty days after the publication of the township assessment roll. This publication date varies, but in DuPage County, it is usually in October.

 

Property tax equalization rate

Most states figure property taxes based on local budgets and assessed values, which translate to a tax rate. It can’t be that easy in Illinois though.

Illinois complicates the tax calculation by applying an “equalization” factor that figures the final tax rate up or down.

According to a 2017 press release from the Illinois Department of Revenue, the department figures out the equalization rate “for each county by comparing the actual selling price of individual properties, over a three-year period, with the assessed value placed on those properties by the county assessor and adjusted by the board of review.” 

State law requires that the total equalized assessed value of all property in Illinois counties equals 33 1/3 percent of the fair market value. The press release goes on to say that “if the median level of assessment for all property in the county varies from the 33 1/3 percent level required by law, an equalization factor is assigned to bring assessments to the legal mandated level.”

Municipalities have the right to accept or reject the equalization factor, which further complicates the issue.

When appealing your property tax bill, you must take into consideration how your own bill was assessed based on the equalization factor.

If you successfully appeal your assessment, your bill might not go down by much, or not at all, depending on how your municipality uses the equalizer.

 

Understanding this system will help you to vote and comment with an informed opinion about how the system can be improved for everyone.

 

Article Source: You know Illinois’ property taxes are sky-high. But the calculation process might surprise you. – Chicago Tribune


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


Illinois Has Second Highest Property Taxes in Nation

Illinois has second highest property taxes in nation

A recent study has concluded that Illinois has the second highest property taxes in the nation, second only to the state of New Jersey.

Complaining about property taxes is a common pastime in this country, but if you’re an Illinois resident, you can be assured that it’s not your imagination. Illinois has the second highest property taxes in the country.

The finding comes from an article “States with the Highest Property Taxes” from Realtor.com which used data from a survey “2018’s Property Taxes by State” conducted by WalletHub.com.

The Illinois statewide average effective tax rate is 2.32%, nearly double the national average according to Smart Asset. The average homeowner in Illinois pays $4,058 annually in property taxes. Many residents in Chicago and the surrounding counties pay more.

 

Top 10 states with the highest property taxes

New Jersey: $7,601 (2.4%)
Illinois: $4,058 (2.32%)
New Hampshire: $5,241 (2.19%)
Connecticut: $5,443 (2.02%)
Wisconsin: $3,257 (1.95%)
Texas: $2,654 (1.86%)
Nebraska: $2,506 (1.83%)
Vermont: $3,893 (1.78%)
Michigan: $2,185 (1.71%)
Rhode Island: $3,929 (1.65%)

 

Top 10 states with the lowest property taxes

Hawaii: $1,459 (0.27%)
Alabama: $550 (0.43%)
Louisiana: $750 (0.51%)
Delaware: $1,274 (0.55%)
District of Columbia: $2,811 (0.56%)
Colorado: $1,516 (0.57%)
South Carolina: $821 (0.57%)
West Virginia: $629 (0.59%)
Wyoming: $1,223 (0.61%)
Arkansas: $721 (0.63%)

 

Property tax bills Kane & DuPage CountyNew tax codes will be felt

For high property tax states such as Illinois, New Jersey, and New Hampshire, it will be getting even worse once the new tax code kicks in next year.

In the past, property taxes were a separate tax deduction you could take in full. Starting in 2018, property taxes will be part of a lump deduction along with state and local sales and income taxes that will be capped at $10,000, even for those married filing jointly.

 

The effect of high property taxes on Illinois

Property taxes are not just an afterthought when buying a home. They can cause buyers to steer clear of certain areas. Illinois is suffering from four straight years of population loss, and in 2017 it dropped from the fifth largest state to the sixth.

Related: High Property Taxes Sending Illinois Homeowners Towards a Cliff 

“I have shown buyers properties that they fell in love with, only to say a big fat no because the taxes were too high,” says real estate agent Denise Supplee at SparkRental.com. “So, property taxes do matter! And the new cap of $10,000 on property and other taxes will only make it more difficult for high-property-tax states.”

There are other factors in play when it comes to the overall cost of living other than property taxes.

Cook County Property Tax Assessments“Every state has their own mixture of taxes that they rely on to fund government services, primarily schools,” says Norton Francis, a senior research associate at the Urban-Brookings Tax Policy Center, a think tank.

States with lower property taxes may have higher income or sales taxes. Some states with higher property taxes have lower income or sales taxes. Some states rely heavily on surcharges for gasoline and cigarettes. Often times, areas with the highest property taxes also have some of the best schools.

Taxes are only one variable that people consider when it comes to buying a home or deciding where to move. One must also consider factors such as job opportunities, schools, and crime rates.

Even considering other factors though, Illinois’  second-highest property taxes in the country is likely contributing to the state’s population loss.

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


Sources:

2018’s Property Taxes by State – WalletHub
These States Have the Highest Property Taxes, but a Possible Loophole Offers Hope – Realtor
Should You Steer Clear of the States With the Highest Property Taxes? – Realtor
Best and Worst States for Property Taxes – The Balance
Illinois drops from the fifth-largest state to No. 6 – Chicago Tribune

 

Real Estate Tax Exemptions in DuPage County

In this post, we will list the real estate tax exemptions available to qualified homeowners in DuPage County, Illinois.

Paying your ever-increasing property taxes is a reality of home ownership whether you are in DuPage, Kane or Cook County.

However, some homeowners in DuPage County may be eligible for real estate tax exemptions for a portion of their home value, which can amount to significant savings, especially for people on fixed incomes.

With the cost of property taxes in DuPage County being some of the highest in the state, it is important that you take advantage of every exemption that you qualify for.

This information has been collected for your convenience and is also available at the DuPage County Treasurer Website.

 

List of DuPage County Property Tax Exemptions

  • Disabled Persons’ Homestead Exemption
  • Disabled Veterans’ Standard Homestead Exemption
  • Homestead Exemption for Veterans with Disabilities
  • Homestead Improvement Exemption
  • Residential Exemption
  • Returning Veterans’ Homestead Exemption
  • Senior Citizens Assessment Freeze
  • Senior Citizens Homestead Exemption

 

Disabled Persons’ Homestead Exemption

The Disabled Persons’ Homestead Exemption provides qualifying homeowners an annual $2,000 reduction in the assessed value of the property owned and occupied on January 1 of the assessment year by the disabled person who is liable for the payment of the property taxes.

You can contact your Township Assessor for more information.

To qualify:

  • You must be disabled or become disabled during the assessment year
  • The applicant must own or have a legal or equitable interest in the property, or a leasehold interest of a single-family residence. The applicant must occupy the property as your principal residence on January 1 of the assessment year and is liable for the payment of the property taxes.

You will need to file a completed PTAX-343 application form with additional documentation (Proof of Ownership) demonstrating eligibility.

Additional information and detailed requirements at DuPage County Treasurer website

 

Disabled Veterans’ Standard Homestead Exemption

Veteran Homeowner ExemptionProvides qualified veterans an annual reduction in the assessed value of the primary residence occupied by a disabled veteran each year depending on the percentage of the veteran’s service-connected disability.

Typical annual tax savings range from $140 to $280 for $2,500 to $5,000 reduction of assessed value.

Contact the DuPage County Supervisor of Assessments Office at 630-407-5858 for more information.

To qualify:

  • Applicant must be an Illinois resident who is a veteran with at least a 30% service-related disability as certified by U.S. Department of Veterans Affairs.
  • The home must be owner-occupied by the disabled veteran or the surviving unmarried spouse of the disabled veteran as of January 1st of eligibility year, and the property value must not be more than $750,000.
  • You will not be eligible if you are claiming exemption under the Disabled Persons Homestead Exemption or the Disabled Veterans Homestead Exemption

You will need to complete and file a PTAX-342 application form along with the required documentation with the Supervisor of Assessments.

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 

Homestead Exemption for Veterans with Disabilities

The property must be owned and used exclusively by a 70% or more disabled veteran. Provides for an exemption for property taxes.

Contact the Supervisor of Assessments Office.

 

Homestead Improvement Exemption

DuPage County real estate tax deferralThe Homestead Improvement Exemption provides an exemption of up to $25,000 of assessment increase due to home improvement. This exemption can continue for four years.

Contact your Township Assessor’s office for more information.

To qualify:

  • If an existing primary residence which is used exclusively for residential purposes experiences an assessment increase resulting from a physical change made to the property, such a new addition or improvement, the amount of assessed value directly related to this change may be deducted from the total taxable assessed value of the property, for a period of four years.
  • The maximum deduction is $25,000 of assessed value.

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 

Residential Exemption

This General Homestead Exemption reduces the net taxable assessed value by a maximum of $6,000

To qualify:

  • Own and occupy the property as a principal residence.
  • Alternately, occupy the property as a principal residence and you have an equitable legal estate and are responsible for the payment of the real estate taxes.
  • In most cases, the Township Assessor will automatically grant the exemption on behalf of the taxpayer without requiring a formal application.  If you have any questions about your exemption status, please contact your Township Assessor.

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 

Returning Veterans’ Homestead Exemption

Real Estate Home Buying MythsThe Returning Veterans’ Homestead Exemption provides for a one-time $5,000 reduction in the assessed value of the veteran’s principal residence for two consecutive tax years when the veteran returns from active duty in an armed conflict involving the armed forces of the United States.

Contact the DuPage County Supervisor of Assessments Office at 630-407-5858 for more information.

To qualify:

  • Must be an Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces and returned from active duty in an armed conflict involving the armed forces of the U.S;
  • Must own or lease and occupy the property as a primary residence and be liable for paying the property taxes.
  • File a completed PTAX-341 application form with additional documentation demonstrating eligibility (Proof of Ownership form).

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 

Senior Citizens Assessment Freeze

The Assessment Freeze Homestead Exemption provides seniors with limited income protection against real estate tax increases due to rising property values. It is not a tax freeze or a tax reduction and does not protect against increased taxes due to tax rate increases.

For applications or questions concerning the exemption, please call the DuPage County Supervisor of Assessments Office at 630-407-5858 for more information.

To qualify:

  • You must establish age, ownership, and residency, by applying for the Senior Homestead Exemption (which requires you to be age 65 by December 31st of the assessment year for which the application is made).
  • Have a total household income (before deductions) of $55,000 or less for the calendar year prior the application year.
  • Effective for the 2018 pay 2019 tax year, the maximum allowable household income is $65,000.
  • Own and occupy the property on or before January 1st of the application year and prior base year.
  • Be liable for payment of real estate taxes on the property.
  • Eligible senior taxpayers must complete a signed and notarized application/affidavit.

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 

Senior Citizens Homestead Exemption

Property tax bills Kane & DuPage CountyThe Senior Citizens Homestead Exemption lowers the taxable value of the property by $5,000.

To qualify:

  • You must be age 65 by December 31st of the assessment year for which the application is made.
  • Complete an application (PDF) and supply proof of age and property ownership.
  • Own and occupy the property.
  • Be liable for the payment of real estate taxes on the property.

Additional information and detailed requirements at DuPage County Supervisor of Assessments website

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


The Law Offices of Lora Fausett P.C. provides real estate law services including buying and sellingshort salesmortgage foreclosure defense and more.

For Information Call 630-858-0090


 

DuPage County Property Taxes: Frequently Asked Questions

Old DuPage County Courthouse

By Katherine Johnson from Springfield, IL – Old Dupage County Courthouse, CC BY 2.0

You probably have a few questions about property taxes. 

The information in this post will be helpful for new homeowners in DuPage County that are paying property taxes for the first time or others who may have received an unexpected bill or change from the treasurer’s office.

As real estate law attorneys serving DuPage, Kane, Kendall, Will, and Cook Counties in Illinois, we advise many clients on issues having to do with real estate transactions, short sales, foreclosure, and other topics.

Here are some of the most commonly asked questions about property taxes in DuPage County.

 

When are my property taxes due?

In 2017, your first installment is due June 1, 2017.  Second installment property taxes due September 1, 2017. Unpaid property tax bills are auctioned on October 30, 2017.

Your property tax bill due dates for 2017 will be announced in spring 2018.

 

Why did I get a bill?

Does the mortgage company pay your taxes?

  • If your mortgage company pays your taxes you will still receive a bill in the mail for your records. A tax bill is often requested to prove residency.

Are you a new property owner?

  • If you are a new property owner you will still receive last year’s tax bills.

Related: DuPage Homeownership Center is Now H.O.M.E DuPage

DuPage County Courthouse

Is my information correct?

Do you need to change your mailing name or address on your bill?

  • If you need to change information on your bill, contact the DuPage County Clerk’s office at 630-407-5540

Does your bill seem too high?

  • You can check if it is correct by calling your Township Assessor to verify that you are receiving the exemptions for which you qualify. If you have questions about rate changes, you should contact that specific taxing body.

Related: High Property Taxes Sending Illinois Homeowners Towards a Cliff

Don’t know your property tax number?

  • Also Known as your parcel number or pin number, your Township Assessor can look up the number for you by property address.

Making a payment?

Did you pay your taxes last year?

  • If you did not pay last year’s taxes you can call the DuPage County Clerk’s office at 630-407-5500 and you should ask for an Estimate of Redemption. Make sure you have your property tax number.

Can I prepay my taxes?

  • Yes, you can. Contact the Treasurer’s Office at 630-407-5900 to speak with the collection department. You will not be able to find prepay information online.

Do you own multiple parcels in DuPage County?

  • You can pay for all of them on one check. Make sure your math is correct and list all the parcel numbers you are paying on the check. Include the correct installment coupon for each payment you are making.

Can I make a late tax payment?

  • Do not worry, this office does not report late tax payments to any credit bureau.

Paying by mail?

  • If you need a receipt, your canceled check will count. If you need an official document, please either call the Tax Information Department (630-407-5900) or add a note requesting a receipt. Allow two weeks for a receipt to be issued.

Will I be charged for a copy of my bill?

  • No, you will not be charged for copies of tax bills for the property owner.

DuPage County Property Tax Resources

DuPage County Treasurer Website

Online Property Tax Information

DuPage County Property Tax Lookup

Free Financial Counseling for DuPage County Homeowners (PDF)


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


The Law Offices of Lora Fausett P.C. provides real estate attorney services including loan modificationsbuying and selling legal assistance, short sales and deeds in lieu, mortgage foreclosure defense, and others.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090