- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Typically 150 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Indiana, lenders may foreclose on a mortgage in
default by using the judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which
involves filing a lawsuit to obtain a court order to foreclose, is
used when no power of sale is present in the mortgage or deed of
trust. Generally, after the court declares a foreclosure, the
property will be auctioned off to the highest bidder. However, there
is a wait time between the date the suit was filed and the day the
property is sold.
In Indiana, the date the mortgage was signed
determines the length of time a lender must wait between filing the
suit and proceeding with the foreclosure sale. The wait time is
anywhere from three (3) to twelve (12) months, but the owner may
file a waiver of the time limit, which allows the sale to proceed
without delay. When this occurs, the lender loses the right to
pursue a deficiency judgment.
The foreclosure sale process involves publishing
an ad once a week for three weeks. The first ad must be run 30 days
before the sale. At the time the first ad is run, each owner must be
served with notice of the foreclosure sale by the sheriff. The
sheriff conveys title by a deed given immediately after the sale.
The owner may reside in the property, rent free, until the
foreclosure sale, provided the owner is not committing waste, which
means tearing up the property.
More
information on Indiana foreclosure laws.
