Indiana Foreclosure Law
Idaho Foreclosure Law states that lenders may foreclose a trust deed in default using the non-judicial process, the only foreclosure type available in the state, a type of foreclosure proceedings in which the borrower grants the lender or “trustee” the right to sale the property in question by inserting a “power of sale” clause in a deed of trust or mortgage. This allows the trustee or their representative to sell the property to pay off the balance on the loan.
If the foreclosure is inevitable and there is a power of sale clause which specifies the time, place and terms of sale, then the following procedures should be strictly observed:
1. The borrower or the occupants of the property should be served the notice of sale at least one hundred twenty (120) days before the date of the sale and the notice should be recorded in the county where the property is located.
The notice of sale should include a legal description of the property, its location, and contact number via phone or to someone who has access thereto, the reason of the default, date and time of the sale and the individual conducting the foreclosure proceedings. The notice should be published in a local newspaper for four (4) consecutive weeks, once every week and the final placement should be published not less than thirty (30) days prior to the foreclosure.
An affidavit of mailing notice of sale and an affidavit of posting (when required) and publication of notice of sale shall be recorded in the mortgage records in the counties in which the property described in the deed is situated at least twenty (20) days prior to the date of sale.
2. The foreclosure proceedings should take place exactly on the date and time and manner specified in the notice of sale. The trustee shall sell the property in one parcel or in separate parcels at auction to the highest bidder. Any person, including the beneficiary under the trust deed, may bid at the trustee's sale. The attorney for such trustee may conduct the sale and act in such sale as the auctioneer of trustee. The trustee may postpone the sale of the property upon request of the beneficiary by publicly announcing at the time and place originally fixed for the sale, the postponement to a stated subsequent date and hour. No sale may be postponed to a date more than thirty (30) days subsequent to the date from which the sale is postponed. A postponed sale may itself be postponed in the same manner and within the same time limitations.
Redemption of the property is allowed in the state and the redemption period varies from the size of the property. If the property consists of more than twenty (20) acres, the buyer has a period of one (1) year to redeem said property. If it is less than twenty (20) acres, the period of time is lessened to six months. Moreover, deficiency judgments are allowed in the state. Deficiency Judgment is the legal action sought by the lender to make claim against the borrower when the proceeds on sale of foreclosed property are not sufficient to cover loan(s) and accrued interest. Private mortgage insurance may help in paying the shortfall and may avoid deficiency judgment.
|
