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.
|Common type of foreclosure process||Judicial|
|Time to respond||Foreclosing party must give homeowner 30 days’ notice before filing foreclosure complaint. The notice (a copy of first publication of notice of sale which must be made once a week for three consecutive weeks, the first publication to be made at least 30 days before action commenced) must be personally served on borrower. After the complaint is filed, house can’t be sold for three months for mortgages signed after July 1, 1975, and longer for earlier mortgages.|
|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||Penalties for violations; violations may also be used to fight foreclosure by rescinding loan under HOEPA (see Ch. 7). Not applicable to 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 (which might happen if former owner agrees to move if new owner agrees 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|