Illinois counties lose bid to dismiss class action lawsuit over property tax sales Thursday, Oct 2, 2025 - Posted by Isabel Miller * Crain’s last year… A new lawsuit aims to abolish the long-standing practice of Illinois counties selling properties over their unpaid taxes in the wake of a U.S. Supreme Court ruling last year that declared the practice unconstitutional. This is about selling homes over unpaid property taxes when the equity in those homes was worth more than the debt. Her decision allows a proposed class-action lawsuit to move forward, against the request of the treasurers of five Illinois counties. Rosenstengel’s Sept. 30 opinion is among the first from a judge to expressly say counties in Illinois may be liable for violating property owners’ constitutional rights. It’s a complex issue, but boils down to a question of whether and how numerous former property owners in Illinois will be compensated for a violation of their property rights.