Indiana Foreclosure Laws

Indiana foreclosure laws calls for judicial foreclosure and with typical timeline of about 9 months. Power of sale or non-judicial proceedings is not allowed. Right to redemption and the deficiency judgment are allowed.

Redemption after sale is not permitted in Indiana foreclosure laws. However, a homeowner or borrower is given a chance to redeem the property during pre-sale period. On the other hand, deficiency judgment is applicable if the property is sold for less than the loan amount. At this point, the borrower pays for the difference between the property sold and the amount of the original loan.

When a borrower defaults on payments, the lender can file lis pendens in order to begin judicial proceedings. A lis pendens is a public notice stating that there is a pending lawsuit against a property. At this stage, the borrower is given up to 3 months to stop the foreclosure by paying debt to fulfill legal obligations to the lender.

Judicial of Foreclosure

After the lis pendens is filed, the lender sets the date for the foreclosure sale of the distressed property. Indiana foreclosure laws gives borrowers the opportunity to put off foreclosure by giving them fair time to pay the default amount owed and accrued interest. For new mortgages, the date of the foreclosure sale should be 3 months after lawsuit or lis pendens is filed. For older mortgage, the foreclosure sale should be set from 6 to 12 months after the lis pendens is filed.

Notice of Sale

When the pre-foreclosure period expires, the foreclosure sale shall be conducted. The Sheriff assigns an auctioneer to facilitate the foreclosure sale. Notice of Sale must be published in local newspapers.

What is A Foreclosure in Indiana? (Guidelines)

• The lender files complaint against borrower stating defaults in payment.
• As stated in the foreclosure laws in Indiana, mortgage is the Security of Instrument and court appearance is required.
• Lender may or may not send default notice to the borrower.
• Before sale, borrower can prevent foreclosure by paying defaulted amount owed and other additional costs or interest.
• Typical timeline is 3 to 12 months.
• The borrower may dismiss pre-foreclosure period in order for the foreclosure sale to take place.
• The judge prepares the order of sale and judgment. The judge issues the Notice of Sale to the Sheriff. The auctioneer is appointed by the Sheriff.
• For 3 weeks, the Notice of Sale must be published once a week. First publication should be at least 30 days before sale. Notice shall be mailed to the borrower and posted in 3 public places and county courthouse.
• Foreclosure sale maybe postponed by the lender. To resume the sale, a new request should be filed and re-served. Notice of Sale should be republished.
• When sale is completed, right to redemption is no longer applicable.
• Deficiency judgment is possible.
• After sale, winning bidder takes full ownership of the property.