New Indiana Foreclosure Bill

A new bill that has been unanimously passed by both chambers of the Indiana General Assembly is just waiting for Gov. Mitch Daniels to sign off on it. Once implemented, mortgage lenders trying to foreclose on a home in the state of Indiana will have to meet with delinquent home owners in order to try to modify loan terms before foreclosing on the property at sheriff's auction.

During the face to face meeting, lenders will be required to inform the property owner where they can find certified foreclosure prevention counseling and off the opportunity to engage in a settlement conference with the borrower. The lender representative does not have to have the power to authorize on the spot modified terms, but there must be someone available by telephone that does have that power. Also, the bill does NOT mandate that the lender must modify the loan.

The purpose behind the bill is to create more dialogue between the homeowner and the lender. It is estimated that there will be a need for about 700 people to perform these face to face meetings statewide. There has been no time table announced for when this would take effect once Gov. Daniels signs the bill into law.