- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Typically 150 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Indiana, lenders may foreclose on a mortgage in default
by using the judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing
a lawsuit to obtain a court order to foreclose, is used when no power of sale
is present in the mortgage or deed of trust. Generally, after the court declares
a foreclosure, the property will be auctioned off to the highest bidder. However,
there is a wait time between the date the suit was filed and the day the property
is sold.
In Indiana, the date the mortgage was signed determines
the length of time a lender must wait between filing the suit and proceeding
with the foreclosure sale. The wait time is anywhere from three (3) to twelve
(12) months, but the owner may file a waiver of the time limit, which allows
the sale to proceed without delay. When this occurs, the lender loses the
right to pursue a deficiency judgment.
The foreclosure sale process involves publishing an ad once
a week for three weeks. The first ad must be run 30 days before the sale.
At the time the first ad is run, each owner must be served with notice of
the foreclosure sale by the sheriff. The sheriff conveys title by a deed given
immediately after the sale. The owner may reside in the property, rent free,
until the foreclosure sale, provided the owner is not committing waste, which
means tearing up the property.
More information
on Indiana foreclosure laws.
