Basic Foreclosure Process/Timing in Indiana

Need a handle on how long it will take to liquidate your borrowers collateral in Indiana? Since the foreclosure process officially starts with the filing of a complaint, my timelines start there. A complaint cannot be filed until there has been a default under the terms of the real estate mortgage or personal property security agreement. Needless to say, many weeks if not months might pass between the initial loan default and the decision to file suit.

The timing of the foreclosure process largely depends upon whether and to what extent the borrower contests the proceeding:

Uncontested Foreclosure: 4 - 6 months minimum. If a business debtor does not contest foreclosure (but will not agree to a deed in lieu), the process can move relatively quickly. Here are the major steps and applicable ranges of time:

1. Filing of the Complaint

2. Service of process on the debtor: occurs in 5-10 days unless service by publication

3. Application for default judgment: can be sought 21-24 days after service of process

4. Entry of default judgment and decree of foreclosure: should occur within approximately 30 days after the Application is filed

5. Praecipe for Sheriffs sale, including notice of same: by statute, cannot be filed until 3 months after the Complaint

6. Sheriffs sale: happens about 45-90 days from Praecipe, depending on the county

Contested Foreclosure: 6-9 months minimum. Given the vagaries of litigation, its virtually impossible to conclusively estimate how long a contested foreclosure case may last. Much depends upon how clear the default and the damages are. Perhaps the most significant factor relates to the time associated with workout negotiations. In that regard, each case is different. Here are the main steps of a fairly quick contested foreclosure:

1. Filing of the Complaint

2. Service of process on the debtor: occurs in 5-10 days unless service by publication

3. Appearance of debtors attorney and motion for one or more 30-day extensions of time to respond to the Complaint: filed 20-23 days after service of process

4. Answer to Complaint: filed 30 days after filing of Appearance and expiration of last motion for extension

5. Motion for summary judgment: can be filed immediately after the filing of the Answer

6. Objection to motion for summary judgment: due 30 days after the filing of the motion for summary judgment

7. Summary judgment hearing: usually held 75-120 days after the motion is filed

8. Entry of judgment and decree of foreclosure: occurs on day of hearing, or soon thereafter, unless the motion is vigorously contested with viable defenses

9. Praecipe for Sheriffs sale: can be submitted immediately after the entry of judgment assuming more than 3 months have passed since the complaint was filed

10. Sheriffs sale: takes place 45-90 days from Praecipe, depending on the county

Judicial sales. Indiana law requires a judicial sale in order to foreclose a mortgage. I.C. 32-29-7-4 (http://www.ai.org/legislative/ic/code/title32/ar29/ch7.html#IC32-29-7-4) is a nice option for creditors looking to expedite a sale. The statute permits, under certain limited circumstances, the sheriffs sale to be conducted by a private auctioneer on the civil sheriffs behalf. This may be advisable in counties without regularly-scheduled sheriffs sales. (I should note that, as to personal property security interests, UCC/Article 9.1 and/or the terms of a security agreement may allow the creditor to repossess the collateral without a sheriffs sale.)

Be prepared for delays. Although the basic procedure is the same throughout Indiana, the timing can be impacted dramatically by the dockets of the individual courts and/or the schedules of the individual civil Sheriffs offices. The periods described are the minimum time periods. The actual time usually is longer. This is especially true if there are multiple creditors named in the lawsuit. Further, in contested cases involving debtors represented by counsel, opposing attorneys can prolong the process in a variety of ways, including multiple motions for extensions of time, requests for discovery and vigorous challenges to a motion for summary judgment. In the event a trial must occur, a resolution of the case can be delayed several months if not years. In addition, a bankruptcy can be filed up until the time when the Sheriffs sale begins, and that can delay the foreclosure process indefinitely.

Depending on the goals of the lender, the lawyer representing the lender can push the case aggressively toward a sale. Or, counsel can be more passive to give the parties time to assess whether a refinancing arrangement may be warranted. The parties can settle, or the debtor can redeem - real estate / I.C. 2-29-7-7 (http://www.ai.org/legislative/ic/code/title32/ar29/ch7.html#IC32-29-7-7); personal property / I.C. 26-1-9.1-623 (http://www.ai.org/legislative/ic/code/title26/ar1/ch9.1.html#IC26-1-9.1-623) - right up to the sale or disposition of the collateral. Debtors attorneys know this, so dont be surprised if a borrower waits until the eve of sale either to file for bankruptcy protection, redeem or yield to the lenders loan modification terms.

John D. Waller is a partner at the Indianapolis law firm of Wooden & McLaughlin LLP (http://www.woodmclaw.com). He publishes the blog Indiana Commercial Foreclosure Law at http://commercialforeclosureblog.typepad.com. Johns phone number is 317-639-6151, and his e-mail address is jwaller@woodmclaw.com.

Filing Date is What Matters When Determining Parties to Name in Mortgage Foreclosure Suit
When a lender makes the decision to foreclose on its borrowers real estate collateral in Indiana, the lender must determine w...

Understanding A Deed In Lieu Of Foreclosure
In the state of Indiana banks and lending institutions which have mortgages likely to go into default have an alternative to ...

Stop Foreclosure And Save Your Home
Three out of four borrowers who enter the foreclosure process leave it through something other than a forced foreclosure sale...

Bank Foreclosure Property - Basic Facts And Common Myths
There are many people who steer clear of foreclosure properties merely because of certain myths that they have about the bank...

Stop Your Bad Habits and Stop Foreclosure Quick
The pride of home ownership can be dashed in a moments notice with health problems or a loss of your job. If you face the dif...

There is No Need to Refinance to Stop Foreclosure
Losing your home can seem so devastating for many people across America. Although foreclosure is word that is often associate...

Ohio Foreclosures Process Can Take Time
Ohio foreclosures take nearly seven months to be completed. There are very similar rules to most other states when it comes t...

Motion for Summary What
If youve heard colleagues or your lawyer mention a motion for summary judgment and wondered what exactly it was, allow me to ...

Purchase Or Invest In Foreclosure Homes
Foreclosure homes are the homes that are repossessed by the lenders because of non-consistent payment on mortgage. The forecl...

How Foreclosure Investing Works
Are you interested in how foreclosure investing works? Have you heard that this is a great way to make money? There are many ...

Stop Foreclosure Fast With a Phone Call
There are programs that will stop foreclosure fast regardless of your situation. If you have fallen on hard times and face th...

Get Creditors Off Your Back - Avoid Foreclosure
Losing your home is not a pretty thing to think about, and it may seem like you are the only one. You can do something about ...

Mobile Home Foreclosure is Different
A mobile home foreclosure is one that can be easy to escape if you know a few simple steps to follow. First of all; a mobile ...

Get Creative to Avoid Foreclosure
Many people will suffer the loss of a job, a cut in pay, or sickness that leaves them unable to make their monthly house paym...

What Are HUD Foreclosures? - A Brief Guide To Understanding What They Are
What is a HUD foreclosures? HUD foreclosures are the government foreclosures in which the properties are seized by the gover...

Buying a Home After Foreclosure
Many people fear that buying a home after foreclosure is impossible. Fortunately, that is not true. You can live your dream o...

Get Foreclosure Help Before Its Too Late
Before you lose your home to foreclosure you may be able to negotiate a reasonable foreclosure help plan. Foreclosure help i...

Avoiding Foreclosure Is Easier Than You Think
Often times avoiding foreclosure may seem impossible, but it really is not the end of the road. You can avoid foreclosure by ...

You May Not Want to Stop Bank Foreclosure
There are times when throwing in the towel is simply the better choice, and it just may be time to move on rather than stop b...

Stop Foreclosure, Save Your Home and Get On with Your Life Today
What a comforting feeling it is for you to know that yes, you can stop house foreclosure and stay in your home.Up till now yo...