Indiana Foreclosure Law

Lenders in Indiana can only foreclose on mortgages in default, and only in the judicial foreclosure process. This means that they have to file a lawsuit and obtain a court order before they can foreclose. The process lasts an average of 150 days (five months), although this can vary from case to case.

The wait time for an Indiana foreclosure extends between the date of the suit and the day the home is auctioned off. This can last anywhere from three to 12 months. However, the lender can waive the time limit in exchange for the right to make a deficiency claim. This means if they decide to foreclose immediately, they cannot sue the borrower afterwards for the balance not covered by the foreclosure.

The foreclosure process begins when the lender files a notice of foreclosure at the appropriate county office. The notice must also be published in an ad in a local paper once a week for three weeks, with the first ad running at least 30 days before the sale date. After the first ad appears, the sheriff serves the same notice to the owner and other concerned parties.

The home is usually sold to the highest bidder in a public auction. After the sale, the sheriff conveys the title through a deed issued right after the sale. Until then, the borrower is allowed to stay in the home rent-free provided they do not “commit waste” or tear up the property. Borrowers are also given a Right of Redemption, a short period after the sale during which they can get current and regain possession of their home.

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