Indiana has a foreclosure timeline that is followed in almost all foreclosure cases. Understanding this timeline can help you plan your foreclosure defense. It can also help you understand how much time you still have to either come back up to date, attempt to sell your house or make plans to eventually move out. It is also important to understand this timeline if you are planning to file for bankruptcy to protect your home.
Indiana foreclosures have four basic parts. The (1) initial “behind-in-payments” period, (2) the foreclosure lawsuit, (3) the foreclosure judgment, and (4) the sheriff’s sale. This entire process from start to finish usually takes about 8-10 months in Indiana. That means that from the first time you stop paying to the day of the sheriff sale is usually 8-10 months. Sometimes, however, it can be much longer in Indiana such as even 2-3 years.
Every mortgage must first get behind in payments for foreclosure to begin. Usually, if you can come up to date in the first 2-3 months, there is no problem. However, if you get to the fourth or fifth month, you will likely get either a threat from an attorney’s office. Other times you will just receive the mortgage foreclosure lawsuit itself through certified mail or delivered by the sheriff’s office.
All is not lost if you receive an Indiana foreclosure lawsuit. You may still have time to make a deal with the mortgage company. You will need to be very alert and proactive at this stage if you want to keep your house. It would be wise to immediately seek out the advice of either a bankruptcy or foreclosure attorney.
You will need to work out a loan modification or other deal to stop the foreclosure. Chapter 13 bankruptcy may also be a powerful option that can easily fix the foreclosure situation. Otherwise, you could also arrange to come up to date in payments or pay off the entire mortgage possibly.
A foreclosure judgment is bad if you are planning on keeping your house. At the point of the foreclosure judgment you probably only have 2-3 more months to keep the house. You would need to either sell the house in this time or make a plan with an attorney for keeping the house. Some workout options can sometimes be unavailable at this point. Sometimes the only option at this point is more powerful things like Chapter 7 or Chapter 13 bankruptcy.
The sheriff sale is the point in time where you lose all ownership of the house. In Indiana, this sale usually occurs at the county jail or other county building at a preset date and time. Either your mortgage holder (such as the bank) or a third party will come in and “buy” the house at the sheriff auction. At that point, you will no longer legally own the property. Someone else will be the new legal owner.
If you simply planned to live in the house until it was time to leave, then you need to be out of the property right before the date of the sheriff sale. Also, if you plan on keeping your house in any way, all action to do must occur before the sheriff sale. After the sheriff sale, it will be too late. Generally, you will not be able to work anything out or file for bankruptcy to save your house after the sheriff sale.