Period of Pre-foreclosure
A foreclosure can take place only when a homeowner defaults on a loan payment. The process of foreclosure can be initiated by the lender by filing a complaint with regards to the default on payment by the borrower in the court. According to the foreclosure law in Indiana, a lender doesn’t have to send the borrower a notice of default before filing a complaint. The pre-foreclosure period is based on the date of issuance of the mortgage and the period of pre-foreclosure lies between the day when the complaint was filed and the day of the foreclosure sale.
Normally, the pre-foreclosure period is for three months but depending on when the mortgage was issued, it can vary between six and twelve months. According to the foreclosure laws in Indiana there is no pre-determined waiting period for properties that have been abandoned. The owner can dismiss the pre-foreclosure period, and allow the sale of the property but this means that the lender will lose their right of pursuing the debt if it is not recovered through the sale of the foreclosure.
Once the period of pre-foreclosure expires, the county clerk will issue a copy for the sales order and also issue a judgment to the county sheriff. Once the County Sheriff receives the order, he or she will go ahead and make arrangements for the sale of the foreclosure.
Under the Indiana foreclosure law, the borrower can redeem his or her property any time prior to the sale of the foreclosure by paying the amount due with interest and inclusive of other costs. In such a scenario the complaint will be dismissed.
The county sheriff has to appoint an auctioneer who can conduct the sale of the foreclosed property. The sales notice according to the Indian foreclosure law will be published once every week for three consecutive weeks in any of the local newspapers. The first notice needs to be published at least 30 days before the foreclosure sale.
It is also the responsibility of the county sheriff to post a notice in a minimum of three places where the public can see it and also at the county courthouse.
The county sheriff has to also serve a sales notice to the borrower.
Once the sale of foreclosure is over, the county sheriff can transfer the ownership of the property to the bidder who has won.
There are times when a lender has to postpone the sale of the foreclosure. In such a scenario, the county sheriff well have to file a new request for the sale and the sales notice will have to follow the same procedures of publishing in a local newspaper and will have to be served again to the borrower.
Once the ownership of the property has been transferred, the borrower will have no rights whatsoever for redemption.