Bill Text: IL SB2919 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Deletes the provision that in a judicial sale the person conducting the sale has the discretion to set the terms of sale. Provides that the sheriff or other person conducting the sale may charge an additional fee as a reasonable expense of the sale for costs associated with conducting the sale online. Requires that the purchaser must provide the sale deposit, if applicable, and the balance due to the sheriff or other person conducting the sale at least 24 hours after the end of the sale, unless otherwise set forth by the sheriff or other person conducting the sale, in a designated form. Provides that in every sale of residential real estate conducted online: (1) the sale may be held open for bidding for up to 3 days and extended by the person conducting the sale as needed to allow for all active competitive bidding to occur, counted in accordance with the provisions of the Statute on Statutes; and (2) bidding shall be open to everyone for the entire duration of the bidding period.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0930 [SB2919 Detail]

Download: Illinois-2023-SB2919-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2919 Introduced 1/26/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
735 ILCS 5/15-1506 from Ch. 110, par. 15-1506
735 ILCS 5/15-1507 from Ch. 110, par. 15-1507
735 ILCS 5/15-1507.2 new
735 ILCS 5/1510.1 new
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Allows a judge, sheriff, or other person to conduct a judicial foreclosure sale online in accordance with the Article. Allows the person conducting the sale to engage a third party online sale provider to assist with performance of the online sale and charge an additional fee as a reasonable expense of the sale for costs associated with conducting the sale online. Requires the person conducting the sale online to obtain court approval and demonstrate the ability to provide substantial marketing of the sale, appropriate and documented process and procedures for conducting online auctions, adequate recordkeeping, substantial expertise in online real estate auctions, and adequate data security. Requires, if the sale takes place online and in person, all bids to be simultaneously announced at the in-person sale and visible to the public online at the time the bids are placed. Prohibits a fee from being charged to the public to view properties for sale online, to participate in any auction in person or online, or to purchase property at an auction in person or online. Requires persons seeking to bid online to complete a registration form and to have their identity verified before a bid can be placed online. Provides that no fee may be charged to a bidder or purchaser at the sale of real estate under the Article beyond the winning bid amount to cover an expense of sale. Makes conforming changes.
LRB103 35721 LNS 65801 b
A BILL FOR
SB2919 LRB103 35721 LNS 65801 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by
changing Sections 15-1506 and 15-1507 and by adding Sections
15-1507.2 and 1510.1 as follows:
(735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506)
Sec. 15-1506. Judgment.
(a) Evidence. In the trial of a foreclosure, the evidence
to support the allegations of the complaint shall be taken in
open court, except:
(1) where an allegation of fact in the complaint is
not denied by a party's verified answer or verified
counterclaim, or where a party pursuant to subsection (b)
of Section 2-610 of the Code of Civil Procedure states, or
is deemed to have stated, in its pleading that it has no
knowledge of such allegation sufficient to form a belief
and attaches the required affidavit, a sworn verification
of the complaint or a separate affidavit setting forth
such fact is sufficient evidence thereof against such
party and no further evidence of such fact shall be
required; and
(2) where all the allegations of fact in the complaint

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have been proved by verification of the complaint or
affidavit, the court upon motion supported by an affidavit
stating the amount which is due the mortgagee, shall enter
a judgment of foreclosure as requested in the complaint.
(b) Instruments. In all cases the evidence of the
indebtedness and the mortgage foreclosed shall be exhibited to
the court and appropriately marked, and copies thereof shall
be filed with the court.
(c) Summary and Default Judgments. Nothing in this Section
15-1506 shall prevent a party from obtaining a summary or
default judgment authorized by Article II of the Code of Civil
Procedure.
(d) Notice of Entry of Default. When any judgment in a
foreclosure is entered by default, notice of such judgment
shall be given in accordance with Section 2-1302 of the Code of
Civil Procedure.
(e) Matters Required in Judgment. A judgment of
foreclosure shall include the last date for redemption and all
rulings of the court entered with respect to each request for
relief set forth in the complaint. The omission of the date for
redemption shall not extend the time for redemption or impair
the validity of the judgment.
(f) Special Matters in Judgment. Without limiting the
general authority and powers of the court, special matters may
be included in the judgment of foreclosure if sought by a party
in the complaint or by separate motion. Such matters may

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include, without limitation:
(1) a manner of sale other than public auction;
(2) a sale by sealed bid;
(3) an official or other person who shall be the
officer to conduct the sale other than the one customarily
designated by the court;
(4) provisions for non-exclusive broker listings or
designating a duly licensed real estate broker nominated
by one of the parties to exclusively list the real estate
for sale;
(5) the fees or commissions to be paid out of the sale
proceeds to the listing or other duly licensed broker, if
any, who shall have procured the accepted bid;
(6) the fees to be paid out of the sale proceeds to an
auctioneer, if any, who shall have been authorized to
conduct a public auction sale;
(7) whether and in what manner and with what content
signs shall be posted on the real estate;
(8) a particular time and place at which such bids
shall be received, including whether a sale will take
place online, in person, or both;
(9) a particular newspaper or newspapers in which
notice of sale shall be published;
(10) the format for the advertising of such sale,
including the size, content and format of such
advertising, and additional advertising of such sale;

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(11) matters or exceptions to which title in the real
estate may be subject at the sale;
(12) a requirement that title insurance in a specified
form be provided to a purchaser at the sale, and who shall
pay for such insurance;
(13) whether and to what extent bids with mortgage or
other contingencies will be allowed;
(14) such other matters as approved by the court to
ensure sale of the real estate for the most commercially
favorable price for the type of real estate involved.
(g) Agreement of the Parties. If all of the parties agree
in writing on the minimum price and that the real estate may be
sold to the first person who offers in writing to purchase the
real estate for such price, and on such other commercially
reasonable terms and conditions as the parties may agree, then
the court shall order the real estate to be sold on such terms,
subject to confirmation of the sale in accordance with Section
15-1508.
(h) Postponement of Proving Priority. With the approval of
the court prior to the entry of the judgment of foreclosure, a
party claiming an interest in the proceeds of the sale of the
mortgaged real estate may defer proving the priority of such
interest until the hearing to confirm the sale.
(i) Effect of Judgment and Lien.
(1) Upon the entry of the judgment of foreclosure, all
rights of a party in the foreclosure against the mortgagor

SB2919 - 5 - LRB103 35721 LNS 65801 b
provided for in the judgment of foreclosure or this
Article shall be secured by a lien on the mortgaged real
estate, which lien shall have the same priority as the
claim to which the judgment relates and shall be
terminated upon confirmation of a judicial sale in
accordance with this Article.
(2) Upon the entry of the judgment of foreclosure, the
rights in the real estate subject to the judgment of
foreclosure of (i) all persons made a party in the
foreclosure and (ii) all nonrecord claimants given notice
in accordance with paragraph (2) of subsection (c) of
Section 15-1502, shall be solely as provided for in the
judgment of foreclosure and in this Article.
(3) Entry of a judgment of foreclosure does not
terminate or otherwise affect a bona fide lease of a
dwelling unit in residential real estate in foreclosure,
whether or not the lessee has been made a party in the
foreclosure.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
Sec. 15-1507. Judicial Sale.
(a) In General. Except as provided in Sections 15-1402 and
15-1403, upon entry of a judgment of foreclosure, the real
estate which is the subject of the judgment shall be sold at a
judicial sale in accordance with this Section 15-1507.

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(b) Sale Procedures.
(1) Upon expiration of the reinstatement period and
the redemption period in accordance with subsection (b) or
(c) of Section 15-1603 or upon the entry of a judgment of
foreclosure after the waiver of all rights of redemption,
except as provided in subsection (g) of Section 15-1506,
the real estate shall be sold at a sale as provided in this
Article, on such terms and conditions as shall be
specified by the court in the judgment of foreclosure. A
sale may be conducted by any judge, or sheriff, or other
person as set forth in paragraph (3) of subsection (f) of
Section 15-1506.
(2) Without limiting the general authority and powers
of the court, the mortgagee, or such other party
designated by the court, in a foreclosure under this
Article may direct that the judge, sheriff, or other
person conduct the sale either in person, online, or both.
(c) Notice of Sale. The mortgagee, or such other party
designated by the court, in a foreclosure under this Article
shall give public notice of the sale as follows:
(1) The notice of sale shall include at least the
following information, but an immaterial error in the
information shall not invalidate the legal effect of the
notice:
(A) the name, address and telephone number of the
person to contact for information regarding the real

SB2919 - 7 - LRB103 35721 LNS 65801 b
estate;
(B) the common address and other common
description (other than legal description), if any, of
the real estate;
(C) a legal description of the real estate
sufficient to identify it with reasonable certainty;
(D) a description of the improvements on the real
estate;
(E) the times specified in the judgment, if any,
when the real estate may be inspected prior to sale;
(F) the time and place of the sale, including: ;
(i) whether the sale will place online, in
person, or both; and
(ii) the website where the online bidding may
take place, if applicable;
(G) the terms of the sale;
(H) the case title, case number and the court in
which the foreclosure was filed;
(H-1) in the case of a condominium unit to which
subsection (g) of Section 9 of the Condominium
Property Act applies, the statement required by
subdivision (g)(5) of Section 9 of the Condominium
Property Act;
(H-2) in the case of a unit of a common interest
community to which subsection (g-1) of Section 18.5 of
the Condominium Property Act applies, the statement

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required by subdivision (g-1) of Section 18.5 of the
Condominium Property Act; and
(I) such other information ordered by the Court.
(2) The notice of sale shall be published at least 3
consecutive calendar weeks (Sunday through Saturday), once
in each week, the first such notice to be published not
more than 45 days prior to the sale, the last such notice
to be published not less than 7 days prior to the sale, by:
(i) (A) advertisements in a newspaper circulated to the
general public in the county in which the real estate is
located, in the section of that newspaper where legal
notices are commonly placed and (B) separate
advertisements in the section of such a newspaper, which
(except in counties with a population in excess of
3,000,000) may be the same newspaper, in which real estate
other than real estate being sold as part of legal
proceedings is commonly advertised to the general public;
provided, that the separate advertisements in the real
estate section need not include a legal description and
that where both advertisements could be published in the
same newspaper and that newspaper does not have separate
legal notices and real estate advertisement sections, a
single advertisement with the legal description shall be
sufficient; in counties with a population of more than
3,000,000, the notice required by this item (B) shall be
published in a newspaper different from the newspaper that

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publishes the notice required by item (A), and the
newspaper in which the notice required by this item (B) is
published shall be a newspaper published in the township
in which the real estate is located; and (ii) such other
publications as may be further ordered by the court.
(3) The party who gives notice of public sale in
accordance with subsection (c) of Section 15-1507 shall
also give notice to all parties in the action who have
appeared and have not theretofore been found by the court
to be in default for failure to plead. Such notice shall be
given in the manner provided in the applicable rules of
court for service of papers other than process and
complaint, not more than 45 days nor less than 7 days prior
to the day of sale. After notice is given as required in
this Section a copy thereof shall be filed in the office of
the clerk of the court entering the judgment, together
with a certificate of counsel or other proof that notice
has been served in compliance with this Section.
(4) The party who gives notice of public sale in
accordance with subsection (c) of Section 15-1507 shall
again give notice in accordance with that Section of any
adjourned sale; provided, however, that if the adjourned
sale is to occur less than 60 days after the last scheduled
sale, notice of any adjourned sale need not be given
pursuant to this Section. In the event of adjournment, the
person conducting the sale shall, upon adjournment,

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announce the date, time and place upon which the adjourned
sale shall be held. Notwithstanding any language to the
contrary, for any adjourned sale that is to be conducted
more than 60 days after the date on which it was to first
be held, the party giving notice of such sale shall again
give notice in accordance with this Section.
(5) Notice of the sale may be given prior to the
expiration of any reinstatement period or redemption
period.
(6) No other notice by publication or posting shall be
necessary unless required by order or rule of the court.
(7) The person named in the notice of sale to be
contacted for information about the real estate may, but
shall not be required, to provide additional information
other than that set forth in the notice of sale.
(d) Election of Property. If the real estate which is the
subject of a judgment of foreclosure is susceptible of
division, the court may order it to be sold as necessary to
satisfy the judgment. The court shall determine which real
estate shall be sold, and the court may determine the order in
which separate tracts may be sold.
(e) Receipt upon Sale. Upon and at the sale of mortgaged
real estate, the person conducting the sale shall give to the
purchaser a receipt of sale. The receipt shall describe the
real estate purchased and shall show the amount bid, the
amount paid, the total amount paid to date and the amount still

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to be paid therefor. An additional receipt shall be given at
the time of each subsequent payment.
(f) Certificate of Sale. Upon payment in full of the
amount bid, the person conducting the sale shall issue, in
duplicate, and give to the purchaser a Certificate of Sale.
The Certificate of Sale shall be in a recordable form,
describe the real estate purchased, indicate the date and
place of sale and show the amount paid therefor. The
Certificate of Sale shall further indicate that it is subject
to confirmation by the court. The duplicate certificate may be
recorded in accordance with Section 12-121. The Certificate of
Sale shall be freely assignable by endorsement thereon.
(g) Interest after Sale. Any bid at sale shall be deemed to
include, without the necessity of a court order, interest at
the statutory judgment rate on any unpaid portion of the sale
price from the date of sale to the date of payment.
(Source: P.A. 100-685, eff. 8-3-18.)
(735 ILCS 5/15-1507.2 new)
Sec. 15-1507.2. Online judicial sale.
(a) The judge, sheriff, or other person may conduct the
sale online in accordance with this Article.
(b) The judge, sheriff, or other person may engage a third
party online sale provider to assist with performance of the
online sale. Any third party online sale provider engaged by a
judge or sheriff must be acquired through competitive

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contracting and governed by State law.
(c) The judge, sheriff, or other person may charge an
additional fee as a reasonable expense of the sale for costs
associated with conducting the sale online and such fee must
not exceed the fee amounts allowed to the sheriff for the sale
of real estate as set forth in Sections 4-5001 and 4-12001 of
the Counties Code. Any fees not charged as a cost in the case
may be agreed to and paid directly by the judge, sheriff, other
person conducting the sale, or a party to the case without
limitation.
(d) In order to conduct a sale online, the judge, sheriff,
or other person conducting the sale must obtain court approval
and demonstrate the ability to provide substantial marketing
of the sale, appropriate and documented process and procedures
for conducting online auctions, adequate recordkeeping,
substantial expertise in online real estate auctions, and
adequate data security.
(e) If the sale takes place both online and in person, all
bids entered during the auction shall be simultaneously
announced at the in-person sale and visible to the public
online at the time the bids are placed. Any maximum bid amounts
provided by bidders ahead of the sale shall not be visible to
the public until the bid is placed.
(f) There shall be no fee charged to the public to view
properties for sale online, to participate in any auction in
person or online, or to purchase a property at an auction in

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person or online.
(g) Any third party online sale provider may not process
and handle sale funds unless specifically approved by the
court.
(h) The person conducting the sale must require a person
seeking to bid electronically online to complete a
registration form that includes information relevant to
properly identifying the bidder, contacting the bidder, and
completing the sale of the property.
(i) The person conducting the sale online must require all
bidders who wish to participate in bidding online to have
their identity verified through an identification verification
process before a bid can be placed online.
(j) All winning bidders shall be checked against the
federal Office of Foreign Assets Control sanction list and any
property auctioned by the federal Treasury Executive Office
for Asset Forfeiture prior to purchase of the property.
(k) Any person conducting a sale online must ensure
satisfactory internal informational security controls that
meet industry standards are maintained. Upon the request of
the court or interested party to the case, the person
conducting the sale shall provide evidence of satisfactory
internal controls regarding data security.
(735 ILCS 5/1510.1 new)
Sec. 1510.1. Purchaser fees and costs. Notwithstanding any

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