Indiana Tax Information
In Indiana, a lender could file a lawsuit to foreclose on real estate. The proceeding usually takes 150 days and both the right to redemption and deficiency judgments are allowed.
Judicial Foreclosure
Judicial foreclosure takes place as a result of a court proceeding wherein a lender sues the borrower for possession of the property to satisfy the unpaid loan. Primarily, a mortgage is the loan instrument that allows a judicial foreclosure. While a deed of trust is designed to facilitate a non-judicial foreclosure, lender may choose to foreclose a trust deed in a judicial process in order to obtain a deficiency judgment.
The period wherein the mortgage was signed determines the length of time it takes between the filing of the lawsuit and the foreclosure sale and this usually takes between 3-12 months. If the owner files a waiver of the time limit with the court clerk, which has been signed by the lender (or judgment holder), then the foreclosure sale process may begin without the need to delay 3 to 12 months. If such a waiver is used however, the lender loses the right to sue the borrower for a deficiency.
Indiana Foreclosure Notice of Sale
Before selling mortgaged property, Indiana foreclosure law states that the sheriff must advertise the sale by publication once each week for three (3) successive weeks in a daily or weekly newspaper of general circulation. The sheriff shall publish the advertisement in at least one (1) newspaper published and circulated in each county where the real estate is situated. The first publication shall be made at least thirty (30) days before the date of sale. At the time of placing the first advertisement by publication, the sheriff shall also serve a copy of the written or printed notice of sale upon each owner of the real estate.
Service of the written notice shall be made as provided in the Indiana Rules of Trial Procedure governing service of process upon a person. The sheriff shall charge a fee of ten dollars ($10) to one (1) owner and three dollars ($3) to each additional owner for service of written notice. The fee corresponds to (1) a cost of the proceeding; (2) to be collected as other costs of the proceeding are collected; and (3) to be deposited in the county general fund for appropriation for operating expenses of the sheriff's department.
The sheriff also shall post written or printed notices of the sale in at least three (3) public places in each township in which the real estate is situated and at the door of the courthouse of each county in which the real estate is located. If the sheriff is unable to procure the publication of a notice within the county, the sheriff may dispense with publication. However, the sheriff shall state that the sheriff was not able to procure the publication and explain the reason why publication was not possible.
Sheriff's sale
A sheriff shall offer to sell and sell property on foreclosure in a manner that is reasonably likely to bring the highest net proceeds from the sale after deducting the expenses of the offer and sale
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