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Indiana Foreclosure Law
Indiana handles foreclosures through the court system. A
typical foreclosure process can take about nine months.
Pre-foreclosure Period
The foreclosure process begins when the lender files a
complaint in court against the borrower. Indiana law does not
require that a lender send a default notice to the borrower
before filing the complaint, but most lenders do. The date the
mortgage was executed controls the pre-foreclosure period
between filing the complaint and the foreclosure sale. Most
often it is three months, but for older mortgages, it can be six
or 12 months. There is no waiting period for abandoned
properties. The owner may agree to dismiss this pre-foreclosure
period, allowing the sale to proceed; however, this causes the
lender to lose its rights to pursue any debt not satisfied by
the foreclosure sale. After the pre-foreclosure period expires,
a copy of the order of sale and judgment are issued and
certified by the clerk to the sheriff. After receiving the
order, the sheriff proceeds with the foreclosure sale. At any
time before the foreclosure sale, a borrower may satisfy the
judgment by paying the debt, interest, and costs; the complaint
must then be dismissed.
Notice of Sale / Auction
The sheriff appoints an auctioneer to conduct the foreclosure
sale. The notice of sale must be published once a week for three
weeks in a local newspaper, and the first publication must occur
30 days before the sale. The sheriff also must post the notice
in at least three public places, as well as the county
courthouse. The borrower is served with the notice of sale by
the sheriff. Immediately after the foreclosure sale, the sheriff
transfers the property ownership to the winning bidder. If a
lender postpones the sale, another sheriff's sale request must
be filed, and the notices must be re-served and republished.
Once the sale is complete, a borrower no longer has redemption
rights.
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