Summary of Indiana's Foreclosure Laws

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If you are facing foreclosure in Indiana, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Indiana
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Indiana foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Judicial

Time to respond

Foreclosing party must give borrower 30 days’ notice before filing foreclosure complaint. Borrower gets 20 days to respond to complaint. After the complaint is filed, house can’t be sold for three months in most cases (longer for certain older mortgages). Foreclosing party must publish notice of sale once a week for three consecutive weeks with the first publication occurring at least 30 days before the scheduled sale, and serve a copy to borrower at the time of the first advertisement. Notice of sale must also be posted at courthouse.

Reinstatement of loan before sale

If the borrower reinstates before the court enters judgment, the foreclosure must be dismissed. If the borrower reinstates after judgment, but prior to the sale, the foreclosure must be stayed (postponed). Reinstatement also available for high-cost home loans (defined in Ind. Code § 24-9-2-8) any time before title is transferred to the purchaser after the foreclosure sale.

Redemption after sale

Available any time before the sale.

Special protections for foreclosures involving high-cost mortgages

Borrower in foreclosure may raise violations of the high-cost home loan statute as a claim, counterclaim, or defense to foreclosure. Ind. Code § 24-9-5-1. Borrower may cure the default and reinstate a high cost home loan at any time until title is transferred to the purchaser after the foreclosure sale. Ind. Code § 24-9-5-2.

Special state protections for service members

Protections under the federal Servicemembers Civil Relief Act extended to national guard members ordered to state active duty for 30 or more consecutive days. Ind. Code § 10-16-7-23.

Deficiency judgments

Allowed if authorized by loan or written agreement and if homeowner does not waive applicable waiting period (homeowner may agree to waiver in exchange for lender’s agreeing not to seek a deficiency judgment)

Cash exempted in bankruptcy

$300 for one person, $600 for a married couple

Notice to leave after house is sold

Foreclosing party (if it is the purchaser at the sale) may proceed with an eviction against the former owners as an extension of the foreclosure action.

Foreclosure statutes

Ind. Code §§ 32-30-10-1 to 32-30-10-14, 32-29-1-1 to
32-29-1-11, 32-29-7-1 to 32-29-7-14

Updated by: , Contributing Editor

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