Foreclosure in Indiana isn’t a discrete event — it’s an ongoing process. It begins when a borrower falls behind on their loan payments. If your bank is not paid in a timely and consistent manner, in line with the terms of the mortgage agreement, they do have the right to attempt to recover the amount owed by taking possession of the home. Just not right away. So, how long do you have before you’re considered to be officially delinquent?
Regulation varies from state to state, but in Indiana, a lender cannot file a ‘notice of default’ on the property until you’ve missed three mortgage payments.That doesn’t mean you should wait to contact your lender until you’re in default, though! As Benjamin Franklin said, ‘An ounce of prevention is worth a pound of cure.’ Work with your loan servicer. Many companies will work out a modification with you.
If you’re already in default, you may be able to organize a short sale and use the proceeds to pay off your debt. This would allow you to avoid official foreclosure proceedings, as well as the havoc they can wreak on your credit history.
At each point of the process, there are different actions you can take that might be able to save your home. There are organizations dedicated to serving Indiana residents that can help you understand your options. Don’t delay any longer — ignoring the problem won’t solve it.
Indiana Foreclosure Prevention Network (IFPN)
This network of financial counseling agencies, housing agencies, community organizations, and other stakeholders grouped together to connect with homeowners through one centralized hotline. (1-877-GET-HOPE). You don’t have to be behind in your mortgage yet to get assistance.
Another important function that the IFPN serves is helping citizens access their rights to Lender Dispute Resolution. In Indiana, you are allowed to meet face to face with your lender for an attempt at restructuring before the foreclosure may proceed. However, this must be requested via the courts, and many residents don’t know this or become confused. IFPN can assist you in navigating that process.
Indiana Housing and Community Development Agency.
This state agency administers Indiana’s Hardest Hit Fund, a federally created pool of $283 million. Indiana is one of only 19 states to receive money for this fund. Assistance is available for up to 6 months and in amounts up to $30,000 for mortgage payments or mortgage reinstatement. In order to qualify for the HHF, you must meet certain income requirements and own only one home. Additionally, your financial difficulties must be through no fault or choice of your own.
Office of the Attorney General.
The Attorney General’s office holds seminars for homeowners to explain the process for requesting a direct meeting with your lender.
Pathstone
This not-for-profit organization operates across several states, and lucky for Hoosiers, Indiana is one of them. The financial education services offered by Pathstone are top-notch and are provided in both English and Spanish. With enough notice, they can even provide a translator for the language of your choice.