Indiana Foreclosure Laws

The state of Indiana allows a full 150 days for the average foreclosure to move through the system. The legal system here allows only the judicial method of foreclosure on the standard security instrument known as a mortgage and a Deed of Trust is not recognized. There is a right of redemption clause for the borrower to allow them to purchase the foreclosed property and the lenders do have the option of filing for a deficiency judgement to recover the amount of difference between the sale price and the amount owed on the property by the borrower.

To initiate the foreclosure the lender must sue the borrower to obtain and get an order to foreclose. Depending on the original date of execution of the mortgage, the lender must wait anywhere from three to twelve months before proceeding with the foreclosure. The owner of the foreclosed property may waive the time limit, but if time is waived, the lender loses any right to sue for a deficiency judgment.

The court issues a notice of sale, which is published weekly by the sheriff for three consecutive weeks in a newspaper of general circulation, with the last publication date at least 30 days prior to the date of sale. Also, the notice must also be given to the owner and posted in three conspicuous places in the township in which the property is located.

The sale is held in the form of a public auction by the sheriff between the hours of 10:00 AM and 4:00 PM on the date specified in the notice. The winner will get the deed to the property.

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