Overview
- U.S. District Judge Matthew F. Kennelly ruled the system violated the Fifth Amendment’s takings clause and the Eighth Amendment’s ban on excessive fines.
- The decision stems from the class action Bell v. Pappas, filed in 2022, which challenges a process that lets private tax buyers obtain deeds and keep all equity if owners miss redemption deadlines.
- Financial liability remains unresolved, with the court set to consider whether and how homeowners should be compensated for lost equity.
- Cook County has postponed its fall tax sale to March 2026 as officials push for state legislative changes, and Treasurer Maria Pappas’ office declined comment citing ongoing litigation.
- Plaintiffs and investigative reporting cite disproportionate harm in majority Black and Latino neighborhoods and document cases where small tax debts preceded losses of homes worth tens or hundreds of thousands of dollars, while the county’s indemnity fund faces a multi-year backlog.