SPRINGFIELD — Buyers, lenders and homeowners will have greater protections when it comes to online foreclosure sales thanks to a new law championed by State Senator Robert Martwick.
“Laying out a process for foreclosure sales to be conducted online enhances transparency and efficiency,” said Martwick (D-Chicago). “By allowing a more modern approach, the state can ensure fairer opportunities and a smoother transaction process for all involved.”
Historically, judicial foreclosure sales take place at the local courthouse, but over the past few years, there has been a rise in online sales and unregulated third-party entities offering this service. The lack of regulation can result in bad actors manipulating the auction process and can endanger user’s data security.
Under the new law, foreclosure sales in Illinois can be conducted online, in-person or both, but the method must be disclosed in the notice of sale. Further, the law sets requirements for a proper online sale, including allowable fees, registration and identification requirements, and bidding procedures.
Online sales can offer a number of benefits over in-person courthouse sales. These sales provide flexibility and transparency, allowing interested buyers to bid on their own schedule and in a more accessible way for those unable to travel to the courthouse. It also provides information to potential bidders beyond what can be provided in a newspaper advertisement, allowing bidders to conduct due diligence on the property.
“Online foreclosure sales provide easy access to property information and allow bidders to participate from anywhere,” Martwick said. “This increases competition and often leads to better outcomes for sellers and buyers alike.”
Senate Bill 2919 was signed into law by the governor on Friday. It goes into effect Jan. 1, 2025.
