If you can put your hands on a little money - maybe from your friends, family or relatives - maybe from otherwise exempt funds - you may have an opportunity to pay off your car loan at a big discount and keep your car.
In Illinois, property is sold at foreclosure by one of several methods, by judicial sale in court, or by a court appointed receiver, trustee or sheriff, usually in the courthouse or by agreement of the parties. The borrower has 7 months after the lawsuit was filed or 3 months after a foreclosure judgment was entered by the court to redeem the property by paying a specified amount to the plaintiff/mortgage holder. If the property is not redeemed within the redemption period, the foreclosure sale transfers all interest in the property to the buyer.
A story from California shows what can happen after a bank takes property.