A new Indiana law, set to take effect July 1, requires mortgage lenders and servicers to provide homeowners facing foreclosure in the state with a pre-suit notice at least 30 days before a foreclosure action is filed.
The ""legislation"":http://www.in.gov/legislative/bills/2009/SE/SE0492.1.html, signed by Gov. Mitch Daniels in May, says creditors must encourage the homeowner to seek assistance from a mortgage foreclosure counselor in the notice and include contact information for the ""Indiana Housing and Community Development Authority’s"":http://www.in.gov/ihcda/index.htm Indiana Foreclosure Prevention Network.
The law also states that if the lender or servicer proceeds with a foreclosure, the homeowner must be sent a second notice when the official foreclosure complaint is filed, informing them of their right to schedule a court-supervised settlement conference during foreclosure proceedings. To facilitate the best possible scenario for resolution, the new law requires three parties be present at the settlement conferences - the homeowner; the attorney for the creditor; and a high-level staff member from the mortgage lender who has the authority to make a decision about the loan. The homeowner may also have a lawyer or a mortgage counselor present.
According to the _""Journal Gazette"":http://www.journalgazette.net/article/20090624/LOCAL03/306249985/1002/LOCAL_ in Fort Wayne, Indiana, the state’s judiciary is taking additional steps to deal with the foreclosure crisis, establishing a statewide training program to better equip judges and volunteer lawyers to assist struggling homeowners.
In addition, last week, Lt. Gov. Becky Skillman announced a statewide phone-a-thon that will give troubled borrowers direct access to foreclosure prevention assistance. The phone-a-thon is a free service provided by the ""Indiana Foreclosure Prevention Network"":http://www.877gethope.org/ and will launch June 30.
In the latest foreclosure market report from ""RealtyTrac"":http://www.realtytrac.com, Indiana had the 13th highest foreclosure rate among all states, with one in every 560 homes receiving a foreclosure filing in the month of May.