Chicagoans have known since last year that city property taxes were slated to increase this year. New information from Cook County Clerk David Orr indicates that, on average, property taxes will increase by 12.8%, which translates to a median increase of $412.87. Chicago real estate attorneys were already anticipating this tax hike; many residential property sales were seeing tax prorations of 115% or more to account for the expected increase.
However, Chicagoans who already own homes may feel a pinch as a result of the tax hikes. For homeowners who are already underwater, or who are making payments on a permanent loan modification, the tax hike may be significant enough to put some people into default on their mortgages or modifications. After all, when taxes go up, so do escrow payments, which have the overall effect of increasing the monthly payment. Will this lead to a new crash? Not likely. Will this put some homeowners in to foreclosure? It might. It may also increase the number of people filing bankruptcies to sever personal liability on their mortgages.
If you are feeling the pinch, then you do have options. Contact us to learn more about them.