Indiana Foreclosure Law

Indiana foreclosure laws are dictate by the state legislative code.

A foreclosure occurs when a homeowner stops making payments for a period of time, which, in turn, forces the mortgage company to seize the property. The circumstances that lead up to a foreclosure can vary greatly depending upon the homeowner's specific situation. In addition, the procedures for dealing with foreclosures vary from state to state as well. Understanding foreclosure law in Indiana is critical for both the homeowner at risk of foreclosure as well as potential investors.

Governing statutes

The Indiana Code details the laws related to the foreclosure process. Statutes are detailed in Article 29 (which deals specifically with mortgages), Chapter 7 (which deals specifically with foreclosure, redemption, sale, and right to retain possession).

Judicial process

Indiana uses a judicial foreclosure system, which entails filing a lawsuit for a court order allowing the foreclosure. This occurs when the property is not sold to cover the mortgage prior to the foreclosure date. The property itself serves as the security for the loan, which is known as lien theory, and lenders are responsible for pursuing the foreclosure.

Time Frame

It generally takes 150 days for a foreclosure to close in the state of Indiana. However, it can vary anywhere between three months and twelve months, depending upon when the original mortgage was signed. If the owner of the home wishes to expedite the foreclosure process, he can file a waiver that allows the home to be sold without the waiting period.

Notice of Sale/Auction

Once the foreclosure has taken place, the sheriff will appoint an auctioneer to conduct the foreclosure sale. Information concerning the auction is published once a week for three weeks in the newspaper, and posted at the county courthouse in order to notify the public. The homeowner is also served with a notice of the auction. Immediately following the auction, ownership of the property is transferred.

Prevention

Indiana provides resources to homeowners facing foreclosure through the Indiana Foreclosure Prevention Network (IFPN). The network provides free assistance with budgeting, financial planning and contacting lenders to homeowners at risk in order to reduce foreclosures and keep residents in their homes.

References

• foreclosurelaw.org- Indiana Law Summary: Quick Facts
• in.gov- Attorney General Homeowner Protection
• in.gov- Legislative Code

Resources

• Indiana Foreclosure Prevention Network