Purchasers of distressed real estate in mortgage foreclosure proceedings can now work remotely, too. Governor JB Pritzker signed into law Public Act 103-930 S.B. 2919, which became effective January 1, 2025, and allows the “sheriff or other person” to conduct a judicial sale “in person, online or both.” 735 ILCS 5/15-1507(b)(2). From the birth of the Illinois Mortgage Foreclosure Law (IMFL) in 1987 through 2024, foreclosure auctions could only be conducted in person.

The primary purpose of this amendment to the IMFL is to maximize the value of real estate sold at auction by expanding the reach to bidders unbound by geography. So, rather than needing to appear in person in the lobby of a sheriff’s office or in a room of a court-approved selling officer, bidders can now log in to an online platform like Ten-X through their computer or mobile device, perhaps in their sweats, and bid up the price of the collateral being sold. The higher the sale price, the better the chance the first mortgage holder gets paid in full, a junior lien holder makes a recovery and the mortgagor collects a surplus.

The rules applicable to online judicial sales are set forth in section 15-1507.2 of the IMFL. The highlights are as follows: the sheriff or other person may may conduct an online sale or engage a third-party online sale provider and charge an additional fee for associated costs to be paid by the seller; must demonstrate to the court’s satisfaction the processes and procedures for conducting online auctions and adequate record-keeping; shall require bidders to complete a registration process that includes providing information relevant to identify the buyer, contact the buyer and complete the sale of the property; and shall verify the identity of the bidder through an independent verification process. Importantly, the person conducting the online sale and the third-party online sale provider may “promote and market the sale to encourage and facilitate bidding.”