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 homeowner 30 days’ notice before filing foreclosure complaint. The notice must include a copy of the first publication of notice of sale, which must be published at least 30 days before the scheduled sale. Notice of sale must be published once a week for three consecutive weeks. After the complaint is filed, house can’t be sold for three months for mortgages signed on or after July 1, 1975 and longer for mortgages signed before July 1, 1975.

Reinstatement of loan before sale

Available for high-cost home loans (defined in Ind. Code § 24-9-2-8) any time before sale

Redemption after sale

Available any time before the final judgment.

Special protections for foreclosures involving high-cost mortgages

If lender violated provisions that apply to high-cost loans, penalties may apply. Violations may also be used to fight foreclosure by rescinding loan under HOEPA (see Ch. 7). Protections not available for loans taken up or guaranteed in secondary market by federal entities (Freddie Mac, Fannie Mae, FHA, VA). Ind. Code §§ 24-9-5-1 to 24-9-5-6

Special state protections for service members

None

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

New owner must ask court for possession of property after giving former owner five-day notice to quit (leave). Ind. Code § 32-30-3-2

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

by: , J.D.

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