Citations Affected: IC 32-30-10.5.
Synopsis: Residential foreclosures. Amends the definition of
"mortgage" in the statute concerning foreclosure prevention agreements
for residential mortgages to: (1) specify that the term does not include
a land contract; (2) specify that the term includes a first lien on
residential real estate upon which a dwelling is constructed or intended
to be constructed; and (3) more closely correspond to the definition of
the term used in the statute concerning first lien mortgage lending.
Provides that in a residential foreclosure action filed after June 30,
2011, the creditor shall include with the complaint filed with the court
the most recent contact information for the debtor that the creditor has
available, including: (1) all telephone numbers and electronic mail
addresses; and (2) any mailing address other than the address of the
mortgaged property; that the creditor has on file for the debtor.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Financial Institutions.
A BILL FOR AN ACT to amend the Indiana Code concerning
a creditor files an action for foreclosure, the creditor shall send to the
debtor by certified mail a presuit notice on a form prescribed by the
Indiana housing and community development authority created by
IC 5-20-1-3. The notice required by this subsection must do the
(1) Inform the debtor that:
(A) the debtor is in default;
(B) the debtor is encouraged to obtain assistance from a mortgage foreclosure counselor; and
(C) if the creditor proceeds to file a foreclosure action and obtains a foreclosure judgment, the debtor has a right to do the following before a sheriff's sale is conducted:
(i) Appeal a finding of abandonment by a court under IC 32-29-7-3(a)(2).
(ii) Redeem the real estate from the judgment under IC 32-29-7-7.
(iii) Retain possession of the property under IC 32-29-7-11(b), subject to the conditions set forth in IC 32-29-7-11(b).
(2) Provide the contact information for the Indiana Foreclosure Prevention Network.
(3) Include the following statement printed in at least 14 point boldface type:
"NOTICE REQUIRED BY STATE LAW
Mortgage foreclosure is a complex process. People may approach you about "saving" your home. You should be careful about any such promises. There are government agencies and nonprofit organizations you may contact for helpful information about the foreclosure process. For the name and telephone number of an organization near you, please call the Indiana Foreclosure Prevention Network.".
(b) The notice required by subsection (a) shall be sent to:
(1) the address of the mortgaged property; or
(2) the last known mailing address of the debtor if the creditor's records indicate that the mailing address of the debtor is other than the address of the mortgaged property.
If the creditor provides evidence that the notice required by subsection (a) was sent by certified mail, return receipt requested, and
prescribed by in accordance with this subsection, it is not necessary
that the debtor accept receipt of the notice for an action to proceed as
allowed under this chapter.
(c) Except as provided in subsection (e) and section 10(g) of this
chapter, if a creditor files an action to foreclose a mortgage, the creditor
shall include with the complaint served on the debtor a notice that
informs the debtor of the debtor's right to participate in a settlement
conference, subject to section 9(b) of this chapter. The notice must
be in a form prescribed by the Indiana housing and community
development authority created by IC 5-20-1-3. The notice must inform
the debtor that the debtor may schedule a settlement conference by
notifying the court, not later than thirty (30) days after the notice
required by this subsection is served, of the debtor's intent to
participate in a settlement conference.
In a foreclosure action filed under IC 32-30-10-3 after June 30,
2009, If a creditor files an action to foreclose a mortgage, the
creditor shall attach to include with the complaint filed with the court:
(1) except as provided in subsection (e) and section 10(g) of this chapter, a copy of the notices sent to the debtor under subsections (a) and (c), if the foreclosure action is filed after June 30, 2009, but before July 1, 2011; or
(2) the following, if the foreclosure action is filed after June 30, 2011:
(A) Except as provided in subsection (e) and section 10(g) of this chapter, a copy of the notices sent to the debtor under subsections (a) and (c).
(B) The most recent contact information for the debtor that the creditor has available or on file, including:
(i) all telephone numbers and electronic mail addresses used by the debtor; and
(ii) any mailing address described in subsection (b)(2).
(e) A creditor is not required to send the notices described in this section if:
(1) the mortgage is secured by a dwelling that is not the debtor's primary residence;
(2) the mortgage has been the subject of a prior foreclosure prevention agreement under this chapter and the debtor has defaulted with respect to the terms of that foreclosure prevention agreement; or
(3) bankruptcy law prohibits the creditor from participating in a settlement conference under this chapter with respect to the mortgage.