Recent consumer research reveals that homeowners are concerned about housing affordability. It is not surprising, then, that many homeowners find themselves faced with the prospect of foreclosure. With any foreclosure, there may be multiple people and entities who have an interest in the underlying real property. Each one of them may find it prudent when choosing a foreclosure attorney to find one familiar with all of the interests served in the foreclosure process. Anyone with an interest in property subject to foreclosure—debtor and creditor alike—benefits from working with an attorney to navigate foreclosure laws in Indiana.
Frame of Reference When Looking at Foreclosure Laws in Indiana
Foreclosure can be viewed with skepticism or with hope—it all depends on the frame of reference.
- Borrowers who are in distress need to know how foreclosure laws in Indiana will impact their ability to keep or ultimately surrender their home.
- Creditors who have a financial interest in the loan securing a home need to know how foreclosure laws in Indiana can help them minimize any losses.
- Investors who specialize in buying property through foreclosure proceedings need to know how secure their investments are and whether there are any applicable waiting periods.
Choosing a foreclosure attorney means choosing one who has the experience to look out for your particular interests. Attorneys who represent clients in various positions relative to foreclosure are best able to anticipate needs of any type of foreclosure client. Camden & Meridew, P.C., attorneys serve clients on both ends of the spectrum and everywhere in between.
A Borrower’s Perspective
Homeowners may find themselves in default on a mortgage for a variety of reasons—excessive debt, inability to work, divorce proceedings—and very rarely is it on purpose. Regardless of the reason for the default, contacting a foreclosure attorney as soon as possible is prudent. An experienced Indiana foreclosure attorney will investigate your best options.
In some cases, an attorney might find a way to delay or stop a foreclosure proceeding. Possible defenses include these:
- Technical defense: An attorney may argue that the mortgage holder has not complied with procedural requirements of foreclosure laws in Indiana.
- Substantive defense: An attorney may argue that there is an issue with the mortgage itself—that it is not actually in default or that was obtained by fraud, for example.
A foreclosure attorney will also be able to look at the possibility of foreclosure alternatives or loss mitigation efforts:
If the foreclosure proceeding is technically and substantively sound and the homeowner cannot bring the loan current, then the home will be sold at a foreclosure sale. If the winning bid at the foreclosure auction does not cover the delinquent loan balance and other costs and fees, the homeowner needs to be prepared for and understand the consequences of a deficiency judgment. An experienced foreclosure attorney can ensure that the amount of any such deficiency is accurate.
A Creditor’s Perspective
Creditors need protection in foreclosure proceedings, too: to remain in strict compliance with Indiana foreclosure laws and to protect secured interests in foreclosures instituted by another creditor.
A creditor benefits from the guidance of a foreclosure attorney even before default, making sure the loan and mortgage documents are well drafted to secure the creditor’s investment and allow enforceable remedies in the event of default.
Indiana foreclosure laws set strict requirements for creditors seeking to recover a delinquency on a promissory note by foreclosing on a mortgage. Failure to satisfy particular requirements regarding notice and timing can seriously delay a foreclosure proceeding or invalidate a foreclosure sale. Counsel can help make sure creditors with required foreclosure steps like these:
- Provide a notice of default.
- Make a timely claim when notified of a foreclosure proceeding by another creditor.
- Provide an opportunity for redemption to allow the homeowner to pay the loan current, plus any related fees and costs, after receipt of a right to cure letter.
- Provide a proper notice of sale.
- Certify that the homeowner is not a member of the armed services.
Consulting with an Indiana foreclosure lawyer is also critical to ensuring that investors are following the statutory requirements of an Indiana foreclosure timeline.
An Investor’s Perspective
Foreclosed homes often come at a good price, but there is a reason for that: there may be problems with the home. Camden & Meridew attorneys work to protect investors in foreclosure properties.
Foreclosed properties held by banks are called real estate owned (REO) properties. Purchasers of REO properties must negotiate the purchase with the banks that own the property, or their real estate agents. REO investors benefit from the help of a legal team that can also act quickly in the face of fast closings that might occur with the all-cash offers that occur in many of these transactions. Time is of the essence when there are competing investors looking to buy the same property.
When the bank received a property through a deed in lieu of sale, there was no foreclosure proceeding to extinguish or eliminate other potential liens on the property. Investors in these properties may be unpleasantly surprised by liens that they have to contend with after the sale. A resourceful real estate attorney can conduct a quality title search to ferret out these issues, to the extent possible, before the sale occurs, and develop strategies for contending with them after the purchase.
Having an attorney is also immensely useful if the property is occupied at the time of sale. Foreclosure is a separate proceeding from eviction. Using an attorney who knows investors get possession of the property swiftly to protect their investment.
Choosing a Foreclosure Attorney is the First Step, No Matter Your Situation
Choosing a foreclosure attorney from Camden & Meridew, P.C. is the first step to protecting your interest when foreclosure and related proceedings are involved. Our attorneys stand ready to navigate the foreclosure laws in Indiana to protect your interests in the foreclosure process. For more information or to schedule a consultation, contact Camden & Meridew, P.C., today by calling 317-770-0000 or by using the firm’s online contact form.