Indiana Foreclosure Law Summary
Stop Indiana Foreclosure
Quick Facts
- 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.
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