A little-known practice that lets private investors extract millions in equity from Illinois homeowners is under mounting legal fire after the U.S. Supreme Court ruled it unconstitutional, leaving some counties potentially on the hook for millions of dollars in damages.

For decades, county treasurers in Illinois have collected unpaid property tax bills by selling the debt to private investors. If homeowners behind on their taxes fail to repay the debt plus interest, those investors can get the deed to their homes. In those cases, the homeowners lose the entire value of their residences, even though they often owe only a fraction of that amount.

In 2023, the Supreme Court ruled that such actions are unconstitutional. A Minnesota homeowner argued that Hennepin County violated her Fifth Ame

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