Indiana Foreclosure Process and Laws
Quick Facts About the Foreclosure Process in Indiana
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 use the judicial process to foreclose a mortgage in default.
When no power of sale is present in a mortgage or deed of trust, the judicial processed is used. This is done by obtaining a court order to foreclose. When this is approved the property will then be sold to the highest bidder.
After a mortgage is signed, there is a time period wherein the lender must wait between filing of the suit and proceeding with the foreclosure sale. This usually lasts 3-12 months but the borrower may waive this so that the sale can be done at anytime. In this situation, the lender loses his right to sue for a deficiency judgement.
Before a sale can take place, a notice must first be placed on the newspaper 30 days before the date of the sale and continued once a week for the next three weeks. Aside from an ad, a letter must also be sent to the parties involved. The owners may still reside in the property until the foreclosure sale, in which the title of the property will be handed over to the new owner.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
Indianapolis Field Office
151 North Delaware Street, Suite 1200
Indianapolis, IN 46204-2526
Phone: (317) 226-6303
Fax: (317) 226-6317
TTY: (800) 743-3333
Jurisdiction: State of Indiana
Field Office Director
Office Hours: 8:00 a.m. to 4:45 p.m.
Monday through Friday