Indiana Foreclosure Law

Indiana foreclosure law deals with the foreclosure system of the state. Indiana Foreclosure Law deals with both of the situation when there is a right of sale and when there is no right to sale available to the lender.

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When there is a right to sale

When there is a right of sale available to the lender, Indiana Foreclosure Law states that lender can exercise that right after sending a thirty days notice to the borrower to vacate the house. Prior to sending a notice of vacating the house, lender is also required to send a notice to the borrower to let him inform that his dues are not clear and lender has the right of foreclosure of house. Although there is no restriction in the Indiana Foreclosure Law regarding number of monthly payments but normally banks do not exercise this right if the payment of one month is due.

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When there is no right to sale

When there is no right to sale available to the lender in an agreement and borrower does not make the timely payment, Indiana Foreclosure Law deals with this situation in detail. Process in Indiana Foreclosure Law is given below when there is no right to sale available to the lender,

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A lender is required to file a law suit for the foreclosure of the property of borrower under Indiana Foreclosure Law.
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It is clearly stated in Indiana Foreclosure Law that when court will declare that lender can exercise his right of foreclosure, property will be auctioned to the highest bidder.
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How much time a lender has to wait for the foreclosure after filing a law suit is determined by the date when mortgage agreement was signed under Indiana Foreclosure Law.
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Under Indiana Foreclosure Law, this time of wait is from 3 to 12 months but it can be decreased on an application by the lender.
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Lender is entitled to get from the borrower remaining amount from the borrower if auction of the property does not accumulate enough amounts.
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If lender files an application to waive or reduce time limit, law permits him to auction the house on a date earlier than the date determined under agreement.
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Indiana Foreclosure Law suggests the lender to deliver all the proceeds to the borrower after deducting loan and interest.
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If lender reduces time limit and property does not accumulate enough amount, Indiana Foreclosure Law states that lender will not be able to collect remaining amount from the borrower.

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