If you've missed mortgage payments or received foreclosure papers, it can feel like there's nothing you can do. In most cases, there's more time and more options than people think, especially if you start early. Here's how it works in Indiana and what you can do.
How foreclosure works in Indiana
- Missed payments. Under federal rules, most lenders can't start a foreclosure until you're more than 120 days behind. Use that time.
- Court case. Indiana uses judicial foreclosure, which means the lender has to file a lawsuit in the county court.
- Settlement conference. For most owner-occupied homes, Indiana gives you the right to ask for a settlement conference with your lender. The papers you receive explain how. Ask for it.
- Judgment and sheriff's sale. If nothing is worked out, the court can enter a judgment and the county sheriff sells the house at auction. Any equity you have can be lost or greatly reduced at a sheriff's sale.
Your options
- Call your lender now. Ask about a repayment plan, forbearance, or a loan modification. Get everything in writing.
- Talk to a free housing counselor. HUD-approved counselors help homeowners at no cost. Indiana's Foreclosure Prevention Network can connect you: 1-877-GET-HOPE.
- Sell before the sheriff's sale. If you have equity, selling, even as-is, can pay off the loan and put the rest in your pocket, instead of losing it at auction.
- Short sale or deed in lieu. If you owe more than the house is worth, your lender may agree to accept less, or take the house back without a sale.
- Talk to an attorney. A bankruptcy or foreclosure attorney can explain options like Chapter 13 that may stop or slow the process.
Watch out for scams
People facing foreclosure get targeted. Never pay an upfront fee to someone who promises to "save" your house. Don't sign your deed over to anyone who says you can keep living there and buy it back later unless your own attorney reviews it. A legitimate buyer will show you the numbers, close through a licensed title company, and never ask you for money.
How we can help
If selling is the right move, we can make a cash offer quickly, often within 24 hours, and close in as little as 5 business days once the title is clear. That can be fast enough to sell before a sheriff's sale date. We'll also tell you honestly if another option, like a loan modification, looks better for you. Call (219) 308-9106 to talk it through, with no obligation.
This guide is general information, not legal or financial advice. Talk to a housing counselor or an Indiana attorney about your situation.