>>> STATE LAWMAKERS ARE ATTEMPTING TO TAKE ON COOK COUNTY'S CONTROVERSIAL TAX SALES SYSTEM.

IF HOMEOWNERS ARE DELINQUENT MORE THAN ONE YEAR ON MAKING PROPERTY TAX PAYMENTS, THEY'RE AT RISK OF OWING LARGE INTEREST PAYMENTS TO PRIVATE INVESTORS WHO BUY UP THAT DEBT.

ULTIMATELY, THEY COULD FACE LOSING THEIR HOME ALTOGETHER.

AFTER SOME NOTEWORTHY STUDIES PUT OUT BY THE COOK COUNTY TREASURER'S OFFICE, LAWMAKERS SAY IT'S TIME TO GIVE THOSE RESIDENTS A FAIR SHOT AT KEEPING THEIR HOMES.

>> Reporter: BACK IN NOVEMBER, WE MET GARFIELD PARK HOMEOWNER HENRY JOHNSON, WHO FELL BEHIND ON HIS PROPERTY TAX PAYMENT AND FACED A NIGHTMARE OF DEBT.

JOHNSON IS ON A FIXED INCOME AND HAD FINANCIAL ISSUES AFTER THE DEATH OF HIS WIFE.

>> SHE WAS A EDUCATOR.

SHE WAS ABLE TO HELP WITH EVERYTHING.

BUT AFTER THAT, YOU KNOW, THAT MADE ALL THE DIFFERENCE.

>> Reporter: JOHNSON NOTE INTEREST OF ONE AND A HALF PERCENT A MONTH TO COOK COUNTY, ACCRUING TO 18% OVER THE COURSE OF THE YEAR.

AFTER THAT, HIS PROPERTY, LIKE ALL OTHERS, WENT TO THE COOK COUNTY TAX SALE, WHERE PRIVATE INVESTORS SWOOP IN TO BUY UP THAT DEBT AND THEY CHARGE UP TO 12% PER YEAR FOR A TOTAL OF 54% INTEREST OVER THE COURSE OF THREE YEARS.

>> BASICALLY, THIS IS VERY POOR PEOPLE PAYING VERY RICH PEOPLE.

>> BARRY, YEAH, VERY POOR PEOPLE PAYING THE WEALTHIEST IN THE COUNTRY.

BEYOND THE WEALTHIEST COMEDIES ARE HEDGE FUNDS.

>> Reporter: JOHNSON'S ORIGINAL TAX BILL WAS LESS THAN $1800, BUT THAT OUT TO $18,173 AFTER SUBSEQUENT BILLS, INTEREST, AND THESE , ALL LOAD AT ONCE IF YOU WANTED TO KEEP HIS HOME.

>> WE'RE TALKING ABOUT PEOPLE'S LIVES.

TALKING ABOUT THE HOMES THAT THEY LIVE IN.

>> ANTHONY SIMKINS IS THE HEAD OF NEIGHBORHOOD HOUSING SERVICES, A NONPROFIT THAT HELPED JOHNSON MAKE HIS PAYMENT AND KEEP HIS HOME.

SIMKINS SAYS MANY HOMEOWNERS RESORT TO DRASTIC METHODS TO GET OUT OF DEBT.

>> THEY BORROW, AND THEY, YOU KNOW, FORGO BUYING MEDICINE, AND ALL KINDS OF OTHER STUFF IN ORDER TO GET THESE BILLS PAID.

>> Reporter: NOW A GROUP OF BILLS FILED IN SPRINGFIELD AIMS TO MAKE IT EASIER FOR THOSE HOMEOWNERS TO HANG ON.

A BILL BACKED BY COOK COUNTY TREASURER MARIA PAPPAS WOULD CUT THE YEARLY INTEREST RATE ON THE DEBT AND HALF, FROM 18% TO 9%.

>> IF YOUR PENALTY IS NOW $500, IT'S GOING TO BE 250.

IN THIS ECONOMY, THAT'S A LOT OF MONEY FOR A HOMEOWNER.

>>> >> Reporter: AND OTHER BILL WOULD REFORM THE STATE SALE IN ERROR LAW.

A STUDY FROM PAPPAS'S OFFICE FOUND THAT MOST TAX BUYERS IS A LOOPHOLE IN STATE LAW TO A FULL REFUND ON THE PROPERTY AFTER IT COLLECTS ALL THE INTEREST FROM PEOPLE LIKE JOHNSON.

THE BUYER SIMPLY POINTS TO ANY MINOR THING WRONG WITH THE PROPERTY AS AN EXCUSE TO OFFLOAD IT, AND THE COUNTY TAXING BODIES HAVE TO FORK OVER ALL OF THE CASH.

>> THE WEBSITE OF THE INVESTOR SAYS THAT THERE'S AN AIR CONDITIONER, AND THERE'S NO AIR-CONDITIONER.

I THOUGHT THERE WAS A TOILET, AND THERE'S NO TOILET.

I THOUGHT THERE WAS A BASEMENT.

THERE IS NO BASEMENT.

HERE, TAKE IT BACK.

>> Reporter: PROPOSED LEGISLATION WOULD NOW MOVE IT TOWARD A BUYER BEWARE SYSTEM.

PAPPAS SAYS THE MESSAGE TO THE TAX BUYER IS, IF YOU ACQUIRE THE PROPERTY, YOU HAVE TO KEEP IT >> LOOK, YOU'RE GOING TO BUY THIS.

IF THERE'S SO MUCH AS A 3.0 YEAR-ROUND.

YOU GET TO KNOW.

OVER THAT SLITS.

AND A SALE ON A HOUSE THAT YOU REALLY JUST WANT TO PURCHASE LIKE.

>> Reporter: ANOTHER PILL SPONSORED BY STATE SENATOR ROBERT PETERS WOULD GIVE THE HOMEOWNER A CHANCE TO PAY OFF THEIR PROPERTY TAX DEBT IN INSTALLMENTS RATHER THAN ONE LUMP SUM.

>> AS LONG AS THEY'RE MAKING PAYMENTS, THAT THEY DON'T RISK LOSING THEIR HOME, RIGHT?

THEY JUST NEED TO KEEP MAKING PAYMENTS.

>> Reporter: BRAD WAS OVER AS PRESIDENT OF THE NATIONAL TAX LIEN ASSOCIATION, A GROUP THAT REPRESENTS TAX BUYERS TO HE SENT THE TAX SALE IS NECESSARY, BECAUSE WITHOUT THE PENALTY, HOMEOWNERS DON'T HAVE INCENTIVE TO PAY TAXES ON TIME.

>> THIS PROCESS IS A MEANS BY WHICH , KIND OF, EVERYBODY PAYS THEIR FAIR SHARE.

>> Reporter: BUT WESTOVER HAS SAID THAT HIS ASSOCIATION WOULD BE SUPPORTIVE OF SOME OF THE CHANGES REPRESENTED IN THIS LEGISLATION.

JOHNSON FINALLY PAID OFF HIS DEBT IN OCTOBER.

HE SAYS THE LEGISLATION WOULD'VE BEEN A GREAT BENEFIT TO HIM.

>> EVERYTHING IS GOOD.

STILL, BACK IN MY MIND , THERE'S GOING