When my dad died a few years ago, I inherited a house in Indianapolis, Indiana. My then-wife and I moved in and subsequently took out a mortgage on the property. Then I got a divorce, which led me to fall behind in the payments. The house is in foreclosure, but it has not gone to sale yet. I recently remarried and my new spouse has a great job. Even though I’m still looking for work, together we have some savings and don’t want to lose the house. If the house gets foreclosed, is it possible for us to get it back afterwards?
No, you can’t get the home back after the foreclosure. Even though some states allow foreclosed homeowners to repurchase their home after the sale (called the “statutory right of redemption”), Indiana is not one of them.
However, you have up until the sale to pay off the full amount of the unpaid loan, plus certain additional amounts, in order to keep the house. This is called “redeeming” the home. (You can also try to work out an alternative to foreclosure with your lender that will allow you to stay in the home, which we’ll discuss below.)
When You Can Redeem Your Home in an Indiana Foreclosure
Foreclosures in Indiana are judicial, which means the lender must file a lawsuit in court to foreclose the home. Under Indiana law, you can't redeem the home after a foreclosure sale, but you can redeem up until the sale takes place (Ind. Code § 32-29-7-7, § 32-29-7-13). You won’t get an opportunity to get your house back after this time. (Learn more general information about the right of redemption.)
How Much You'll Have to Pay to Redeem Your Home
In order to redeem, you must pay the court clerk or the sheriff the full amount of the judgment (which is the full amount of the mortgage debt), plus interest and costs (Ind. Code § 32-29-7-7, § 32-30-10-5).
Take Action to Save Your Home as Early as Possible
If you want to keep the house, there may be other options available to you besides redeeming the home. For example, you could:
- reinstate the loan by catching up on the past-due amounts, or
- ask the lender to give you an alternative to foreclosure (such as a mortgage modification, forbearance agreement, or repayment plan) that will allow you to stay in the home.
You should look into alternatives to foreclosure as soon as possible to ensure that you can complete the process before the sale takes place. (To learn more about foreclosure laws and procedures in Indiana, visit Nolo’s Indiana Foreclosure Law Center.)
How to Locate Indiana’s Redemption Laws
To find the laws covering redemption rights in Indiana, go to Title 32, Article 29, Chapter 7 and Title 32, Article 30, Chapter 10 of the Indiana Code.