Indiana · Weigh your options

Can the lender come after you for the rest? Deficiency judgments in Indiana

Yes. In an Indiana foreclosure, if you signed a written promise to pay, the court enters a personal judgment against you, and any balance left after the sheriff's sale can be collected from your other property. The statute gives one way out: if you agree, with the lender's consent, to give up the 3 month waiting period so the sale can happen sooner, the lender gives up any deficiency judgment.

Ask for help in Indiana Free HUD counselor: (800) 569-4287

Reviewed against Indiana law and official sources on October 11, 2026. General information, not legal advice.

Deficiency rules in Indiana, point by point

The personal judgment comes with the foreclosure
When the court enters the foreclosure judgment
If there is a written promise to pay, such as a note, the foreclosure judgment includes a personal judgment against you for the debt. If the sale does not pay it in full, the rest can be collected from your other property.
Ind. Code §§ 32-30-10-5, 32-30-10-7
Waive the waiting period, lose the deficiency
Before the sale
Indiana normally makes the lender wait 3 months after filing before the sale. If you file a written waiver of that wait with the lender's consent, the sale can happen right away and the lender gives up any deficiency judgment against you.
Ind. Code § 32-29-7-5
No fair market value cap
At the sheriff's sale
We found no Indiana statute that limits a deficiency to the home's fair market value. The shortfall is the judgment amount minus what the home brings at the sheriff's sale, which is why a low sale price matters.
Ind. Code § 32-30-10-7
Use the settlement conference to deal with the balance
Ask within 30 days of being served
At the court settlement conference you can ask about options that end the debt, such as a short sale or deed in lieu with a written waiver of any deficiency. See our Indiana foreclosure mediation page for how to ask.
Short sale and deed in lieu
When you sign the agreement
Indiana has no special statute on deficiencies after a short sale or deed in lieu. The written agreement with your lender controls, so ask that it clearly says the lender waives any remaining balance.
If the lender tries to collect a balance
After the sale
Get the sheriff's return and the court's judgment to see the sale price and the amount still claimed. Contact Indiana Legal Services or the Indiana Foreclosure Prevention Network listed on our Indiana foreclosure help page.

The short answer in Indiana

Can the lender come after me for the rest?

Deficiency judgments allowed

Yes. If you signed a written promise to pay, the court enters a personal judgment against you, and any balance left after the sale can be collected from your other property. One way out is in the statute: if you agree, with the lender's consent, to give up the 3 month waiting period so the sale can happen right away, the lender gives up any deficiency judgment against you. A lender can also agree to waive the deficiency in a settlement.

Ind. Code §§ 32-30-10-5, 32-30-10-7, 32-29-7-5

Never pay an upfront fee to stop a foreclosure.

Once a foreclosure is public record, strangers will call, text and mail you with offers to “save your home.” Under federal law a company cannot collect a fee for mortgage relief until you have a written offer from your lender that you accept. Never sign over your deed, and never send your mortgage payment to anyone but your servicer. How to spot a foreclosure rescue scam.

Indiana law: Yes. Indiana's mortgage rescue protection fraud law covers foreclosure consultants and people who take title to your home and promise to sell or lease it back. A consultant must give you written notice of your rights first, generally cannot be paid until all promised services are done, cannot take a lien, a power of attorney, or an interest in your home, and you can cancel the contract until midnight of the 7th business day after signing. The law was moved from Ind. Code art. 24-5.5 to art. 37-4 in a 2026 recodification. Violations can be reported to the Attorney General. (Ind. Code §§ 37-4-3-1, 37-4-4-2 (formerly Ind. Code art. 24-5.5))

Common questions in Indiana

Should I waive the 3 month waiting period in my Indiana foreclosure?

Waiving it, with the lender's consent, means the lender gives up any deficiency judgment, but the sheriff's sale can happen sooner. That trade can make sense if you cannot keep the home and owe more than it is worth. Talk with Indiana Legal Services or a lawyer before you sign a waiver.

Can a lender agree to forgive my Indiana deficiency in a settlement?

Yes. A lender can agree in writing to waive any deficiency as part of a loan workout, short sale, deed in lieu or other settlement. Make sure the written agreement says so clearly before you sign.

Why does the sheriff's sale price matter for what I owe in Indiana?

Indiana has no fair market value limit on deficiencies, so the balance is based on the price the home brings at the sheriff's sale. A higher sale price means less left over for the lender to collect.

Step by step

Free help anywhere in the country

HUD-approved housing counselors
Free foreclosure prevention counseling from agencies approved by the U.S. Department of Housing and Urban Development. A counselor can review your budget and deal with your servicer alongside you.
(800) 569-4287
CFPB: help for struggling homeowners
Plain-language guides from the Consumer Financial Protection Bureau, and a complaint form if your mortgage servicer is not following the rules.
Legal Services Corporation: find legal aid
Find the free civil legal aid office for your county if you have been served with a foreclosure lawsuit or given a sale date and cannot afford a lawyer.

Ask a question

Need help avoiding foreclosure in Indiana?

Tell us where things stand. A person reads every message and writes back with the options that fit your situation and the free, official help available in Indiana.

Free. There is nothing to buy and no fee, ever.
No loan number, Social Security number or documents needed.
We are not your lender, a law firm or a government agency.

If a sale is days away, do not wait for an email. Call a free HUD-approved housing counselor now at (800) 569-4287.

Your first name

State where the home is

Phone (optional if you gave an email)

Where are things right now?

Type of mortgage

What do you want most?

Anything else we should know? (optional)For example: a sale date, what your servicer has told you, or what changed in your income. Please do not include your loan number, Social Security number or bank details.

Free, and there is nothing to buy. A person reads your message and replies by email, or by phone if you leave a number. We never ask for a fee and we do not sell your details. See the privacy policy.

Can the lender come after you for the rest? Deficiency judgments in Indiana

Deficiency rules in Indiana, point by point

The personal judgment comes with the foreclosure

Waive the waiting period, lose the deficiency

No fair market value cap

Use the settlement conference to deal with the balance

Short sale and deed in lieu

If the lender tries to collect a balance

The short answer in Indiana

Can the lender come after me for the rest?

Common questions in Indiana

More on foreclosure in Indiana

Understand the process

Weigh your options

Get help now

Free help anywhere in the country

HUD-approved housing counselors

CFPB: help for struggling homeowners

Legal Services Corporation: find legal aid

Need help avoiding foreclosure in Indiana?

Sources for this page