How Foreclosure Works in Indiana

Judicial. A lender forecloses by filing a court action; after a judgment and decree of sale, the county sheriff sells the property at a sheriff's sale.

At least 30 days before filing a foreclosure, the lender must send the borrower a pre-suit notice by certified mail on a state-prescribed form. It must say the borrower is in default, encourage the borrower to get help from a foreclosure counselor, explain the borrower's rights before a sheriff's sale, give contact information for the Indiana Foreclosure Prevention Network, and include a boldface "NOTICE REQUIRED BY STATE LAW" warning about foreclosure-rescue promises. The first page of the summons must tell the borrower of the right to a settlement conference. Before the sheriff's sale, the sheriff must publish notice once a week for 3 successive weeks, with the first publication at least 30 days before the sale.

The pre-suit notice must be sent at least 30 days before filing. A court generally may not enter a foreclosure judgment until at least 60 days after that notice was sent and the settlement-conference requirements are met. For mortgages executed on or after July 1, 1975, the sale order cannot be carried out until 3 months after the complaint was filed (unless the property is found abandoned). Once the judgment is certified to the sheriff, the sale is generally scheduled within 120 days, and the first published notice must be at least 30 days before the sale.