Increase in Foreclosures in Indianapolis

With the end of COVID-19 foreclosure moratoriums, home auctions are rising again across the country. In September, there was an 18.4% increase in foreclosures in the United States compared to the previous year. Indiana is not exempt from this national trend, as the city is experiencing a similar pattern, with foreclosures becoming more frequent.

Statewide, Indiana ranks 12th in the United States in the number of foreclosures, with a foreclosure rate of one in every 3,158 homes. In October alone, 922 homes entered the foreclosure process, a trend unlikely to disappear soon, making it necessary for homeowners to learn more about this process.

Foreclosure Laws in Indiana

Facing foreclosure can be overwhelming for many people, so it is important to understand the laws to manage this situation. The first thing to know is that federal law requires foreclosure proceedings cannot begin until you are at least 120 days behind on payments. In Indiana, lenders must contact you at least 30 days before filing a lawsuit and provide information about your rights, a notice of default, guidance on how to pay off the entire debt to stop the foreclosure, and contact details for the Indiana Foreclosure Prevention Network so you can get help from an advisor.

After this initial contact, the lender must wait 30 days before filing a lawsuit, giving homeowners time to explore and consider their options.

After these 30 days, the lender can begin the foreclosure process by filing a lawsuit in court to request a foreclosure sale. Once notified, you as the homeowner have 20 days to respond to the lawsuit. If you do not respond, the lender can request a default judgment to proceed with the foreclosure sale.

If you decide to contest the lawsuit, litigation will begin. Once the sale is decided through the trial, the sale usually cannot occur until at least three months after the lawsuit is filed. Once the sale is imminent, the sheriff will post a notice at the courthouse and announce it in the local newspaper, then deliver a notice of sale to the homeowner at least 30 days before the sale.

Avoiding Foreclosure in Indianapolis

When your lender files for foreclosure, you still have some options to stop it.

One option is to pay the full amount of the loan before the foreclosure sale proceeds. This is undoubtedly the ideal way to stop a foreclosure process, although it is also the most difficult for you as a homeowner.

Another option you have is to reinstate the loan before the court judgment, delaying the foreclosure. However, missing another payment can restart the process.

A final option is to file for bankruptcy, which can immediately stop foreclosure proceedings. An automatic stay is enacted, temporarily preventing the lender from collecting the debt through a sale.

Available Foreclosures:

Indianapolis: 922 homes available.

By Elias DaSilva | October 15, 2024.