The Indiana Foreclosure Prevention Network (IFPN) provides free help to Indiana residents who are having mortgage difficulties and are at risk of mortgage delinquency and foreclosure. Read on to learn more about the IFPN, what types of assistance are available, and how to obtain help under the program if you are in danger of foreclosure.
To learn more about foreclosure procedures in Indiana and state programs to help you avoid foreclosure, visit out Indiana Foreclosure Law Center.
To learn about other options for dealing with foreclosure, visit Nolo's Foreclosure section.
Indiana Foreclosure Prevention Network: Background Information
In early 2006, the Indiana Housing and Community Development Authority held several meetings with government agencies and industry leaders to talk about the growing problem of mortgage defaults in Indiana and to devise solutions to reduce the number of foreclosures in the state. As a result, they created a statewide initiative called the Indiana Foreclosure Prevention Network (IFPN) to assist Indiana residents facing foreclosure.
The IFPN initiative, which is a public-private partnership, commenced in November 2007 and includes:
- a public awareness campaign
- a telephone help line, and
- a statewide network of trained mortgage foreclosure counselors.
Get Free Assistance Through the IFPN
The IFPN is a free program that provides neutral counseling and education to at-risk homeowners, as well as offers options to homeowners so they can avoid foreclosure. The IFPN's services include:
- counseling services
- lender dispute resolution, and
- mortgage payment assistance through Indiana’s Hardest Hit Fund.
Homeowners who are at risk of falling behind in their mortgage payments or who are facing foreclosure of their primary residence can speak with a housing counselor free of charge. The counselor can provide advice and information about various options to avoid foreclosure. For example, counselors can provide assistance with:
- coming up with a financial plan, and/or
- contacting lenders to discuss loss mitigation.
To get information about loss mitigation, see our Alternatives to Foreclosure area.
The counselor will review your particular financial situation and help you find the best solution to your specific situation, as well as let you know if you qualify for any government programs. (To learn about government programs for distressed homeowners, visit Nolo's Government Foreclosure Prevention Programs area.)
Lender Dispute Resolution
Another option through the IFPN is the Indiana foreclosure mediation program.
In Indiana, borrowers in foreclosure have the legal right to request a settlement conference with the mortgage lender to try to negotiate an agreement to avoid foreclosure (so long as the property being foreclosed is your primary residence and you have not defaulted on any previous loan modifications).
A settlement conference is a face-to-face meeting with your lender to try to discuss options such as a:
- loan modification
- forbearance agreement
- short sale, or
- deed in lieu of foreclosure.
To get information about each of these options, see our Alternatives to Foreclosure area.
When the lender files a complaint for foreclosure with the court (the official start of the foreclosure process in Indiana), it must include a notice that informs you of your right to participate in a settlement conference. You then request the settlement conference with the court. (To learn about the specific foreclosure laws in Indiana, see our Summary of Indiana’s Foreclosure Laws.)
The IFPN can help you through this process and can also assist you in preparing for the settlement conference. It is recommended that you call the IFPN at least two weeks prior to your settlement conference due to the large call volume and the amount of time needed for counselors to review a foreclosure file and prepare for the settlement conference.
There is no cost to participate in a settlement conference or to have the IFPN assist you in your preparations for the conference.
For more information on these settlement conferences, see Indiana’s Foreclosure Mediation Program.
Indiana’s Hardest Hit Fund
In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states, along with Washington, D.C., that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis.
In 2011, the IFPN launched the Indiana Hardest Hit Fund after receiving over $221 million through the Hardest Hit Fund. There are three programs within Indiana’s Hardest Hit Fund:
- The Unemployment Bridge Program, which provides mortgage payment assistance for currently unemployed or recently unemployed homeowners.
- The Recast/Modification Program, which reduces the homeowner’s monthly first mortgage payment to an affordable level.
- The Transition Assistance Program, which provides financial assistance for moving and relocation expenses for homeowners who are completing a short sale or deed in lieu of foreclosure. (See our Short Sales and Deeds in Lieu of Foreclosure area for more information on these topics.)
To learn more about Indiana’s Hardest Hit Fund programs, including eligibility requirements and how to apply for assistance, see Indiana’s Hardest Hit Fund Programs.
Contact the IFPN
You can fill out an online application requesting assistance through the IFPN by clicking on the “Apply Now” button at www.877gethope.org. Once you set up a profile, the IFPN will connect you with a housing counseling agency.
You can also call 877-GET-HOPE (toll-free) to get immediate assistance. The help line is open on weekdays from 8:00 a.m. to 8:00 p.m.
Contact Your Servicer Too
In addition to seeking help from the IFPN, you can call your loan servicer (the company that collects and manages your mortgage payments) directly to be evaluated for foreclosure prevention options.