Foreclosure process in Indiana

Is Indiana judicial or non-judicial?

Judicial. If a borrower defaults, the mortgage holder “may proceed in the circuit court, superior court, or probate court of the county where the real estate is located” to foreclose (IC 32-30-10-3). The court enters a judgment, orders the sale, and the sheriff sells the property. Nothing in the code we read lets a lender sell the home through a private power of sale without a court judgment.

Timeline step by step

The statutes set minimums and deadlines, not an average. We did not find an official source for a typical total duration, so ask an attorney or a housing counselor about your case.

Who gets the settlement conference?

The settlement conference is for a “mortgage” as the chapter defines it: a first-lien loan used mainly for personal, family or household purposes on a dwelling. Land contracts are excluded (IC 32-30-10.5-5). The lender need not send the notices if the home is not your primary residence, if you defaulted on an earlier foreclosure prevention agreement, or if bankruptcy law bars the conference (IC 32-30-10.5-8(e)).

If you ask for a conference:

• The court stays dispositive motions, and your request counts as an appearance (IC 32-30-10.5-8.5).
• You send your loss mitigation package to the lender’s attorney and the court at least 30 days before the conference. The lender must send you a payment history and an itemization of what it claims at least 30 days before (IC 32-30-10.5-10).
• The lender’s attorney must attend, and a representative with authority must be reachable by phone. You may bring an attorney or a foreclosure counselor. Costs of the conference cannot be charged to you.
• If you reach an agreement, it is written and signed, and the lender files it within seven business days. The lender may dismiss or stay the case while you comply. If you do not, the lender files a notice within seven business days and the case may proceed.

While the case is pending, the court may order you to pay your monthly mortgage amount, no more than your existing payment, to the clerk or an attorney trust account (IC 32-30-10.5-8.6).

Can I stay in the home?

If you own and occupy the home as a dwelling, the court allows you to stay rent free until the sale if you keep paying taxes and special assessments and do not let the property suffer waste (IC 32-29-7-11(b)).

Right of redemption

Before the sale, any owner or part owner may redeem by paying the judgment, interest and costs to the clerk (before the judgment goes to the sheriff) or to the sheriff (after). The sale is then stopped (IC 32-29-7-7). For mortgages made after June 30, 1931, the code says there is no redemption except as provided in that chapter and in IC 32-29-8 (IC 32-29-7-13), so plan on the deadline being the sale date. If the owner pays principal and interest due plus costs before final judgment on a suit where nothing else is due, the complaint must be dismissed (IC 32-30-10-11).

Deficiency judgments

In its judgment the court must give a personal judgment against any party liable on a written agreement to pay the debt (IC 32-30-10-5), and if the sale falls short, the court directs that the unpaid balance and costs be levied on the borrower’s other property (IC 32-30-10-7). If there is no express agreement to pay, the lender’s remedy is limited to the mortgaged property (IC 32-30-10-4). If the sale brings more than is owed, the surplus goes to the clerk for the borrower or the borrower’s assigns (IC 32-30-10-14).

Help for homeowners in default

• Indiana Foreclosure Prevention Network: call 877-GET-HOPE. The IFPN says its services are confidential and free, with HUD-certified counselors who work with you and your lender.
• HUD-approved counselors: the CFPB posts a ZIP code search of HUD’s official list.
• Mortgage payment aid: the Indiana Homeowner Assistance Fund made its final payments in August 2024 and no longer takes applications (877gethope.org).

For other state programs, see first-time buyer programs in Indiana. If you are buying a foreclosed home, see seller disclosure in Indiana, which exempts foreclosure and bank-owned transfers.