If you’re an Indiana homeowner who's facing foreclosure, the Indiana Foreclosure Prevention Network might be able to help you. This organization provides free foreclosure prevention counseling to homeowners who're struggling to make their mortgage payments. Your housing counselor will work with you and your lender to try to find a solution to your mortgage problems.
In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in the states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states—including Indiana—that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis.
In 2016, the states received another $2 billion so they could continue their foreclosure prevention efforts. (To learn more about the Hardest Hit Fund in general, including which states have Hardest Hit programs, see Save Your Home From Foreclosure: Hardest Hit Fund Programs.)
Indiana initially used its Hardest Hit Fund allocation to fund programs that gave money to homeowners who were having trouble making their mortgage payments or paid for relocation expenses after a short sale or deed in lieu of foreclosure. While Indiana's Hardest Hit Fund stopped taking applications for those programs as of June 30, 2017, you can still get free foreclosure counseling through the Indiana Foreclosure Prevention Network (IFPN).
A counselor might be able to help you get a loan modification. Talking to a counselor might help you avoid a foreclosure in Indiana. Your counselor can assist you in creating a budget so you can better afford your mortgage payments, as well as tell you about your different options and help you apply for a loan modification.
A counselor can prepare you for a settlement conference. In Indiana, homeowners in foreclosure get the right to meet with the lender to try to work out a way to avoid foreclosure. Homeowners have to ask the court for the meeting, which is called a “settlement conference." An IFPN counselor can also help you get ready for the meeting and tell you what to expect during the settlement conference. (To learn more about settlement conferences, see Indiana's Foreclosure Mediation Program.)
Also, keep in mind that Hardest Hit programs in other states have closed when funding ran out, but reopened when more money became available. Indiana homeowners can sign up to get an email if the state program starts taking applications again.
Counseling through the IFPN is free. You shouldn’t pay anyone for any services associated with getting assistance from the program.
Homeowners facing a foreclosure in Indiana should also beware of other scams, like loan modification scams. (To learn more, see Foreclosure Rescue Scams to Avoid.)
To connect with an IFPN housing counselor, call 877-GET-HOPE (877-438-4673). To get more information about counseling, go to the IFPN website. You can also get a list of participating counselors at that website.
If you want representation at a settlement conference and throughout the foreclosure process, consider hiring a local foreclosure attorney.