Legal Question in Real Estate Law in Illinois

Generally, yes.

The purchaser of delinquent property taxes generally bids at auction for the right to pay the existing unpaid taxes at a certain interest rate. The winning bidder is the bidder who bids the LOWEST interest rate. Thus, in Cook County, for example, the winning "bid" is usually at an interest rate of "0%". The reason being that the right to pay the existing outstanding taxes WITH NO INTEREST, also gives the winning bidder the right to pay SUBSEQUENT TAXES at an interest rate of 18% per year. That is where an investor's money is made should the true owner of the property not "redeem" timely. Depending on what kind of sale the property's taxes were obtained at (there are annual sales, scavenger sales and forfeiture sales or over-the-counter sales) will determine what length of time is allowed for the true owner to redeem. If all of the backtaxes, plus interest, penalties and other costs are not paid within the requisite period allowed for "redemption", then the property tax purchaser is allowed to begin proceedings in Circuit Court to obtain a Deed to the property.

Thus, although possible, it would be impractical for a first lienholder to NOT pay the subsequent years taxes and allow for a potential subsequent lienholder to come into the picture. As long as the first lienholder continues to pay the future taxbills (for which they will earn an exorbitant interest rate of 18% I believe), than a second different lienholder will never come into the picture,