Wednesday, June 24, 2009
Ind. Law - "Courts set for foreclosure change"
Though it might be August before Allen County court officials see any changes from a new mortgage law taking effect next week, they will be ready July 1.The 30-day requirement may be found on p. 9 (SECTION 5) of this PDF version of SEA 492.
In the spring, the state legislature took steps to try to help stem the tide of foreclosures, which reached a peak in Allen County in 2007 with about 2,700; there were about 2,500 last year.
The legislation, signed into law by Gov. Mitch Daniels in early May, requires mortgage lenders or creditors seeking foreclosure action to send a notice to the borrower at least 30 days in advance, to encourage the homeowner to work with a mortgage counselor.
Creditors also must include contact information for the Indiana Housing and Community Development Authority’s Indiana Foreclosure Prevention Network.
If that notice doesn’t work, a second notice will be sent when the foreclosure is filed, informing the debtor he or she may schedule a settlement conference through the court.
It is those meetings for which Allen Superior Court Judge Nancy Boyer and Allen Circuit Court Judge Thomas Felts are gearing up. Currently, Allen County Circuit Court handles about 55 percent of the county’s foreclosures, with Superior taking the rest.