Foreclosure Guidelines in Indiana

Highlights:

Judicial/ Non-Judicial Foreclosure: Only Judicial foreclosure

Right of Redemption / Deficiency Judgment: Yes / Yes

Timeline: 150 Days, Can vary depending on individual cases

Deed of Trust / Mortgage as Security Instruments: Mortgage
Judicial Foreclosure Process:   

Only the Judicial Foreclosure process can be used to foreclose mortgage property in Indiana. Generally, a power of sale clause is not present in the mortgage and the court needs to approve the mortgage sale. Once the court gives the sale order, the property is sold off in a public auction to the highest bidder.

The time between the date on which the litigation was filed and the date on which the property is sold, can vary between 3 months and 1 year. The lender may opt for  a speedier sale. But if they do that, they lose their right for filing for a deficiency judgment.

The foreclosure procedure involves publishing of the notice of foreclosure as an advertisement thrice in the local newspapers for three consecutive weeks, beginning at least 30 days before the sale date.

The existing owner(s) of the property need to be issued with a notice of the foreclosure sale during the publication of the first ad, and this is done by the Sheriff. The sheriff conducts the sale and transfers the deed to the highest bidder after the sale, to confirm the transfer of property.

The owner cannot be charged any rent to live in their property from the date of foreclosure order by the court, till the foreclosure sale is completed.

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