Are you a homeowner in Indiana who is worried about foreclosure? If so, you should know that you’re not alone. Foreclosure rates in Indiana are rising, and it can be overwhelming not to know what to do if you’re at risk of losing your home.
This blog post will provide an overview of the Indiana foreclosure process and explain your options if you find yourself facing foreclosure. Additionally, we’ll offer advice on avoiding foreclosure.
Whether you’re facing foreclosure for the first time or you’re curious about the process, keep reading to learn more.
What is a Foreclosure, and How Does it Work in Indiana?
The foreclosure process is a legal procedure used by lenders to seek repayment of unpaid loans from defaulting borrowers. In Indiana, borrowers that are past due 120 days are eligible for foreclosure.
How to Avoid Foreclosure
It is still possible to avoid foreclosure if you are experiencing financial difficulties.
Negotiate With Your Lender
Talk to your lender about negotiating a payment plan. In some cases, smaller payments will have to be made over a longer period of time.
Request a Loan Modification
It may be possible to modify your mortgage payment if you are struggling to make your current payments. Your loan terms, such as interest rate or repayment period, may be modified.
Sell Your Home
Selling your home might make sense if you are having financial difficulties. While making this decision is not easy, it may be the most effective way to avoid foreclosure.
How to Stop or Delay Foreclosure
Besides paying off your mortgage, you can prevent a foreclosure from damaging your credit score by doing one of three things.
If your house cannot be sold for the total amount of your mortgage, you may be able to make a short sale. This occurs when your lender accepts a lesser amount than the total loan.
Right of Redemption
During a redemption period, borrowers in foreclosure are given a specific amount of time to pay off their debts in order to “redeem” their property. By redeeming your home, the foreclosure process will be halted.
Sell for Cash
Alternatively, you can sell your house for cash. Selling your house to a homebuyer can be an easy and quick way to avoid foreclosure.
What to Do if You Can’t Avoid Foreclosure
When facing foreclosure, it is best to seek legal advice from a qualified professional. A lawyer can help you understand your rights and options to achieve the best possible outcome for you and your family.
The Process of Foreclosure in Indiana
When facing foreclosure, it’s important to understand the process. In Indiana, the foreclosure process can take up to 150 days to complete.
If you default on your mortgage payments for your home in Indiana, the foreclosure will be judicial. Indiana law requires lenders to send homeowners a pre-foreclosure notice by certified mail at least 30 days before filing the foreclosure suit.
In judicial foreclosure, a lender files a lawsuit asking a court for an order authorizing a foreclosure sale. By serving you a summons and complaint, the lender notifies you of the lawsuit. Upon receiving the summons, you have the right to request a settlement conference to discuss options to prevent foreclosure within 30 days.
Answers to complaints are generally due within 20 days. In the event that you fail to respond to the suit, the lender will likely obtain a default judgment, which allows it to hold a foreclosure sale. However, if you choose to defend the foreclosure lawsuit, the case will be litigated.
The lender may then request summary judgment from the court. Summary judgment motions ask the court to grant judgment in favor of the lender because there is no dispute about the critical elements of the case. If the court grants summary judgment or you lose the trial, your home will be auctioned.
The Consequences of Foreclosure
Foreclosure can have severe consequences for homeowners and their communities. The foreclosure process can lead to homeowners losing their homes and damaging their credit scores. As a result, new housing and credit can be difficult to obtain. The foreclosure process is also emotionally draining and can take a long time.
Communities can also be negatively affected by foreclosures. Having nearby homes foreclosed can lower property values. Consequently, tax revenue will decline, and crime will increase.
Resources for Homeowners Facing Foreclosure in Indiana
If you’re facing foreclosure in Indiana, several resources are available to help you. These include:
- The Homeowner Protection Unit assists homeowners in asking their lender for a loss mitigation review to see if they qualify for a workout option that lowers their monthly payments and/or interest rates.
- Indiana Homeowner Assistance Fund (HAF) helps homeowners who have suffered financial hardship due to the pandemic with their mortgage or housing expenses.
- The U.S. Department of Housing & Urban Development provides guidance on foreclosure prevention.
Avoid Foreclosure in Indiana by Selling Your House Fast
If you’re facing foreclosure, selling your home might be your best option. At Favor Home Solutions, we understand this is a difficult time for you. Our goal is to help you get the best price for your home while guiding you through the process.
Our team will:
- Evaluate your situation and make you a fair, all-cash offer
- Close on the date of your choice
- Take care of all the paperwork
- Pay all the closing costs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!