For homeowners facing foreclosure in Indiana, the following is a summary of the state’s foreclosure laws:
Indiana only allows judicial foreclosures, meaning a bank must file a lawsuit in order to foreclose on a home.
Nonjudicial foreclosure is not permitted in Indiana.
Indiana law requires the following notices:
- If the home is your primary residence, the bank must send a 30-day pre-foreclosure notice to you before filing a lawsuit with the court. The notice must inform you that you overdue and encourage you to seek assistance from a mortgage foreclosure counselor, as well as inform you of your rights after a foreclosure judgment. It must also give contact information for the Indiana Foreclosure Prevention Network (IFPN).
- The bank must give you notice of the lawsuit by serving you with a summons and complaint, giving you 20 days to file a written response with the court.
- If the home is your primary residence, the summons must also include a notice about participating in a foreclosure settlement conference to find an alternative to foreclosure.
- Before a home can be sold at a foreclosure sale, the must post a notice of the sale at the courthouse and advertise the sale in a local newspaper for three weeks with the first ad being posted at least 30 days before the sale. The sheriff must also serve a copy of the notice of sale to the homeowner after the first ad.
Indiana Foreclosure Protections
Indiana law provides protections in accordance with the federal Service Members Civil Relief Act.
Indiana law also provides special protections against foreclosure to members of the military and to members of the Indiana national guard in active duty for at least 30 consecutive days, as well as to high-risk home loan homeowners.
For high-cost home loans, homeowners may raise violations as a claim, counterclaim, or defense to foreclosure. Also, a homeowner may cure the default and reinstate a high-cost home loan until title is transferred to the new buyer after the foreclosure sale.
Reinstatement and Redemption
In Indiana, if the homeowner reinstates before a court judgment, the foreclosure must be dismissed. If the homeowner reinstates after judgment, but before the sale, the foreclosure must be postponed. The foreclosure can continue if the homeowner misses other payments.
In Indiana, the homeowner can redeem the home for a period of time after the foreclosure. However, the homeowner can’t redeem the home following a foreclosure sale.
In Indiana, there is a three-month period between the time that the bank files the lawsuit and the order of sale, yet if the homeowner renounces the waiting period with the bank’s consent, then the bank is exempt from a deficiency judgment.
If the former homeowners don’t leave the home after an Indiana foreclosure, the bank may proceed with an eviction lawsuit. For information regarding how to avoid foreclosure in Indiana, visit HUD.gov.