Indiana Foreclosure Laws

Indiana Foreclosure Laws

Different states in US have differing laws regarding real estate foreclosure. Indiana foreclosure laws allows a judicial process for foreclosure of real estate. This kind of a judicial process generally takes about 150 days for completion. Indiana foreclosure laws allows for both Right to Redemption and Deficiency Judgments.

The Foreclosure Procedures in Indiana

Real estate foreclosures are an unfortunate event for the buyers of a piece of real estate. It is inconvenient for the lender also as there are intricate legal proceedings involved for him to recover his losses, but on the other hand foreclosure homes are a very sound investment opportunity. In the judicial real estate foreclosure process the lender files a lawsuit that helps him recover losses sustained due to default of payments by the borrower. The foreclosure lawsuit helps the lender to repossess distressed property.

In real estate dealings the existence of a deed of trust is meant to speed up the process in the event of a foreclosure. However, in Indiana, the lender has an option of foreclosing on a trust deed. This enables him to obtain a deficiency judgment if the sale value of the repossessed home turns out to be less than the outstanding due to him.

Usually three to twelve months elapse between filing of a foreclosure lawsuit and the actual foreclosure sale. However, the concerned parties have the right to file for a waiver of the time limit. This speeds up the process of foreclosure considerably. The catch here is that if the time waiver option is used then the borrower forfeits his chances for a deficiency judgment.

What is Next?

As per the Indiana State Foreclosure Law there are several conditions to be fulfilled before foreclosed property can be sold. The county sheriff is required to publicize the foreclosure sale by placing notices of the sale in the county newspapers for three continuous weeks. The first time that this notice appears in the newspapers should be at least thirty days prior to the actual foreclosure sale. The law also requires this notice to be reached to the borrower and a written receipt obtained for the same. The responsibility of reaching these notices to the concerned persons rests with the sheriff and he is entitled to charge a stipulated fee for the services rendered. The fees collected in this manner are deposited in the county general fund that funds the operations of the sheriff's office.

The responsibility of deciding the manner in which a foreclosure sale is to be conducted lies with the sheriff. He is empowered to decide upon the best possible option that will bring in the highest price. The sheriff is expected to take into consideration legal expenses incurred by the lender while deciding upon the method of sale.