Neglected property auction nets record $1M in Winnebago and Boone counties

By Kevin Haas
Rock River Current
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ROCKFORD — The Region 1 Planning Council said that this spring’s online auction of tax-delinquent properties netted more than $1 million in gross sales, the highest amount recorded in the four years of the program.

Private investors purchased 170 properties in Winnebago and Boone counties through the council’s online sales portal. The purchases included dozens of vacant plots of land, as well as empty commercial and residential buildings. There were 26 houses purchased among the 170 properties.

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The April auction was the sixth sale of tax delinquent properties in Winnebago County and the inaugural sale of such parcels in Boone County. The program is designed to get hundreds of neglected properties back into the hands of responsible private owners and, in turn, generate future tax revenue for local governments.

“For the last four years, the new Winnebago County Trustee program has returned millions of dollars’ worth of property back to private ownership, which has grown our county’s tax base,” Loves Park Mayor Greg Jury, who also serves as the chairman of the Region 1 Planning Council board, said in a news release.  “I am especially proud of how Region 1 Planning Council continues to improve the property buying process, now also incorporating Boone County.”

The April auction drew 280 registered bidders and more than 1,300 total bids, both of which were historic highs. The total gross sales from the April auction was $1,037,993.

County government can file an order in court for a tax deed after three years of unpaid taxes and then either take possession of the property or sell it at auction. Local officials say the goal is to reduce blight and increase the value of surrounding properties as private owners invest in previously neglected buildings and plots of land.

“We’re not just selling properties. We’re sowing seeds of positive neighborhood transformations,” Rockford Mayor Tom McNamara said in a news release. “With each sale, we pave the way for revitalization, reducing the burden on our city by alleviating costs of maintenance, like mowing. It’s not just about the transactions; it’s about the overall impact we’re making, one property at a time.”

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Since the inception of R1’s online auction, there have been 1,245 parcels sold generating a total of $3.5 million. The council estimates that the fair market value of the properties sold has grown by $15.9 million after the sales.

“As the trustee of the program, I am encouraged by the number of new owners investing in these previously abandoned properties,” Winnebago County Board Chairman Joe Chiarelli said in a news release. “This allows surrounding homeowners a chance to see an increase in property value and a stronger neighborhood. As trustee, I also have led a program to transfer vacant land to neighboring property owners, and I am pleased to say we have transferred over 120 parcels back to private ownership.”

By the numbers | online tax-delinquent property sales

Here’s a look at the numbers behind online tax-delinquent property sales since the program began in 2020.

1,245 properties sold

276 residential structures

$3,538,000 total gross sales

$15,921,000 estimated fair market growth of properties sold (the estimate is based on fair market value increases of four and a half times the sales amount after rehab)

900 properties in the trustee program when R1 took over the program

253 properties in the program today

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas