Indiana Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Usually 150 Days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Indiana may foreclose on a mortgage in default using the judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
How much time is to elapse between when the lender files the suit and the foreclosure sale occurs is determined by the date the mortgage was signed in Indiana. The wait time is anywhere from three (3) to twelve (12) months. The property owner may file a waiver of the time limit, which allows the sale to proceed without delay. If this occurs, the lender forfeits the right to pursue a deficiency judgment.
A notice of a foreclosure sale must be published once a week for three (3) consecutive weeks. The first advertisement must run thirty (30) days before the sale. At the time the first ad runs the property owner must be served with notice of the foreclosure sale by the sheriff.
After the sale occurs, the sheriff conveys title by a deed to the purchaser. The owner may reside in the property, rent free, until the foreclosure sale, provided the owner does not damage the property.
Once the sale concludes, the borrower has no rights of redemption.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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