How foreclosure works in Indiana

The notices you will receive in Indiana, in order

1. Pre-suit notice

   Sent by your lender by certified mail at least 30 days before it files the lawsuit

   This notice is on a form set by the Indiana Housing and Community Development Authority. It says you are in default, urges you to see a foreclosure counselor, and lists the Indiana Foreclosure Prevention Network. The lender can go ahead even if you do not sign for the certified letter, so pick it up and call a counselor right away.

   Ind. Code § 32-30-10.5-8(a), (b)

2. Summons and complaint

   Served on you when the lender files, after the federal 120-day wait

   The complaint starts the court case. The first page of the summons must carry the settlement conference notice. Under the Indiana Trial Rules a response to a complaint is due within 20 days after service, so read the summons for your exact deadline and file a response.

   Ind. Code § 32-30-10.5-8(c); Ind. Trial Rule 6(D)(1)

3. The court's settlement conference notice

   Mailed by the court itself when the complaint is filed

   The court sends its own letter telling you about your right to a settlement conference and gives the date by which you must ask for one. That date is 30 days after you were served with the complaint. The court cannot hand this job to the lender.

   Ind. Code § 32-30-10.5-8(d)

4. Notice of settlement conference

   Issued by the court after you ask for a conference

   This is a court order setting the conference for a date 40 to 60 days out. It tells you to send your loss mitigation package to the lender's attorney and the court 30 days before the conference, and it comes with a list of the documents the package needs.

   Ind. Code § 32-30-10.5-10(a)

5. Judgment and decree of foreclosure

   Entered by the judge if there is no agreement, and no sooner than 60 days after the pre-suit notice was sent

   The judgment states what you owe, usually includes a personal judgment against you for the debt, and orders the home sold. You can still pay the full judgment, interest and costs at any time before the sale to keep the home.

   Ind. Code §§ 32-30-10.5-9, 32-30-10-5, 32-29-7-7

6. Notice of sheriff's sale

   Served on you by the sheriff when the first newspaper notice runs, at least 30 days before the sale

   After the lender files a praecipe asking for a sale, the sheriff advertises the sale once a week for three weeks, posts it at the courthouse door, and serves each owner with a copy. The notice gives the date, time and place, and lists the property by street address.

   Ind. Code § 32-29-7-3(b), (e), (g), (i)

7. Sheriff's deed and writ of assistance

   Right after the sale

   The sheriff gives the buyer a deed immediately after the sale. If you have not moved, the buyer can apply to the court clerk for a writ of assistance, which directs the sheriff to deliver possession of the home.

   Ind. Code § 32-29-7-10; Ind. Trial Rule 70(A)

The legal steps in Indiana

1. Missed payments and the pre-suit notice

   Federal rules generally stop your servicer from starting a foreclosure until you are more than 120 days behind. In Indiana the lender must also mail you a pre-suit notice by certified mail at least 30 days before it files. The notice tells you that you are in default and gives contact details for the Indiana Foreclosure Prevention Network, which offers free counseling.

   12 C.F.R. § 1024.41(f); Ind. Code § 32-30-10.5-8(a)

2. The lender files a lawsuit

   The lender files a foreclosure complaint and you are served with a summons. The first page of the summons must tell you about your right to a settlement conference, and the court mails you its own notice too. Under the Indiana Trial Rules a response to a complaint is due within 20 days after service, so read the summons for your exact deadline and do not ignore it.

   Ind. Code § 32-30-10.5-8(c), (d); Ind. Trial Rule 6(D)(1)

3. Ask for a settlement conference

   You have 30 days after you are served with the complaint to tell the court you want a settlement conference. You can return the request form, call the court, or go to the court in person. The court then sets a conference 40 to 60 days out, and you must send your loss mitigation package to the lender's attorney and the court 30 days before the conference.

   Ind. Code §§ 32-30-10.5-8(c), 32-30-10.5-10(a)

4. Settlement conference or judgment

   If you ask for a conference in time, the court must hold off on ruling for the lender until the conference ends with an agreement or without one. If there is no agreement, or you did not ask for a conference, the court can enter a foreclosure judgment and order the home sold. No judgment can be entered until at least 60 days after the pre-suit notice was sent.

   Ind. Code §§ 32-30-10.5-8.5, 32-30-10.5-9

5. Waiting period and notice of sale

   The sale process cannot start until 3 months after the complaint was filed, for mortgages signed on or after July 1, 1975. The sheriff must then advertise the sale once a week for 3 weeks, with the first notice at least 30 days before the sale, and must serve you with a copy of the notice. If a court finds the home is abandoned, the sale can move ahead right after judgment.

   Ind. Code § 32-29-7-3

6. Sheriff's sale

   The sheriff sells the home at public auction. Until the sale you can stop it by paying the full judgment, interest and costs. If you live in the home, you can generally stay there rent free until the sale as long as you keep paying the property taxes and do not damage the property.

   Ind. Code §§ 32-29-7-3, 32-29-7-7, 32-29-7-11

7. After the sale

   The sheriff gives the buyer a deed right after the sale, and there is no right to buy the home back. Plan to move out, because the buyer can apply to the court clerk for a writ of assistance directing the sheriff to deliver possession. Any money left over after the debt and costs are paid goes to the court clerk for you.

   Ind. Code §§ 32-29-7-9, 32-29-7-10, 32-30-10-14; Ind. Trial Rule 70(A)

Common questions in Indiana