SB 2919

Abstract

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. Senate Floor Amendment No. 2 Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Authorizes the mortgagee to request that a foreclosure sale be conducted in person, online, or both. Requires that the party who gives notice of a public sale must post on its website the date, time, and place on which an adjourned sale is to be held. Authorizes a sheriff or other person to conduct a sale online. Defines "third-party online sale provider". Limits the fee for an online judicial sale for residential real estate to $400, unless a higher fee is approved by the court. Provides that fees may not reduce or affect sheriff's fees as provided in the Counties Code. Specifies what identification may be used to verify the identity of bidders for a sale online. Provides the satisfactory internal informational security a platform that conducts an online sale must maintain. Provides that if a purchaser's information cannot be verified, the purchaser is in default and the sale may be voided to proceed with a resale. Provides that the person conducting the sale has the discretion to set the terms of the sale. Provides that the person conducting the sale and third-party online sale provider may promote and market the sale to encourage bidding. Provides that the person conducting the sale or third-party online sale provider is solely responsible for paying all fees or expenses incurred in conjunction with these activities. House Floor Amendment No. 2 Deletes reference to: 735 ILCS 5/15-1506 Replaces everything after the enacting clause. 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.