Indiana Laws

Indiana foreclosures can only be pursued through judicial means. The process takes about nine months to complete.

A lender must first file a suit known as a Lis Pendens in court against a homeowner, and then usually informs the homeowner, though this is not required by Indiana foreclosures law. The court then schedules a hearing on the matter as well as a tentative date for a foreclosure sale. If the court rules in favor of the lender, the sale will go ahead as scheduled. The date for the sale depends on how long the mortgage has been on the books. If the mortgage is fairly new, the sale can be scheduled as soon as three months after the court's ruling. If the mortgage is somewhat old, the sale must take place at least six months and up to twelve months in the future. This law is designed to give people who have already paid off a majority of their loan more time to pay, in an attempt at fairness. In any case, the homeowner can stop the foreclosure process entirely by providing the lender with the amount owed in default at any time before the sale occurs.

If the homeowner chooses, they can waive altogether the right to a waiting period and allow the sale to proceed right away. In doing so, the homeowner strips the lender of their right to seek a deficiency judgment against the homeowner in the event that the sale price of the home does not satisfy the amount of the original loan provided.

Before a sale can occur, the county Sheriff must advertise it by issuing a Notice of Sale and publishing it in a local newspaper one weekly for the four weeks leading up to the sale. The Notice must also appear on the county courthouse door and two other public places.

The foreclosure auction is conducted by a licensed auctioneer of the Sheriff's choosing. Once a winning bidder provides payment for their bid, the sale is legally ended and the original homeowner retains no right to redemption.

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