Mortgage Foreclosure Laws in Indiana
Foreclosure is the act of repossessing a property when the homeowner is unable to make payments that are required per the mortgage contract. In the state of Indiana, an uncontested foreclosure may be completed in as little as 150 days. It may take longer if the borrower chooses to contest the proceedings.
Other People Are Reading
-
Foreclosure Process
-
There are typically two types of foreclosure proceedings. The first is called a judicial foreclosure, in which the lender files a lawsuit to obtain a court order to sell the property. A nonjudicial foreclosure does not involve the court system. A clause in the mortgage allows the lender to sell the property once the borrower defaults on the loan. The state of Indiana only recognizes the judicial foreclosure process.
Sale Requirements
-
Before a sale may occur, the lender must wait three months from the date the complaint was filed with the court. Once this time has elapsed, the sheriff is required to take an advertisement in a local newspaper at least once a week for three weeks, with the first ad being at least 30 days prior to the auction taking place. The borrower must also be formally served with a notice of foreclosure. The sale must take place between the hours of 10 a.m. and 4 p.m. on any day except Sunday.
-
Deficiency
-
A deficiency occurs when the auction price of the home does not equal the outstanding balance due on the home. According to Indiana law, the borrower is held liable for any balance that is unpaid by the sale of the home.
Right of Redemption
-
A right of redemption allows the borrower to pay the outstanding amount, plus costs in order to halt foreclosure proceedings once they have begun. Some states allow a right of redemption for a specified amount of time after the sale is complete. Indiana is not one of those states, but it does offer a right of redemption prior to the sale.
-
