Who can understand legalese.. Not me, but from what I have read. After a mortgage company files foreclosure, or gets a foreclosure judgement(i think the latter, but am confused) on your real estate, the default timelimit is 90 days, but it can go as long as 12 months before the Indiana Real Estate goes to sherriff’s sale.
Here is the timelines, and it’s all based on when your loan was signed/executed.
(SNIP)
Sec. 3. (a) In a proceeding for the foreclosure of a mortgage executed on real estate, process may not issue for the execution of a judgment or decree of sale for a period of three (3) months after the filing of a complaint in the proceeding. However:
(1) the period is:
(A) twelve (12) months in a proceeding for the foreclosure of a mortgage executed before January 1, 1958; and
(B) six (6) months in a proceeding for the foreclosure of a mortgage executed after December 31, 1957, but before July 1, 1975; and
(2) if the court finds that the mortgaged real estate is residential real estate and has been abandoned, a judgment or decree of sale may be executed on the date the judgment of foreclosure or decree of sale is entered, regardless of the date the mortgage is executed.
(/SNIP)
You can also waive the timeline, and let it go straight to sherriff’s sale, and or some mortgage companies will allow you to sign a “deed in lieu of foreclosure”, which gives them the deed and they dont have to send it to sherriff’s sale at all. Side Note:The “deed in lieu of foreclosure” is considered a foreclosure, but to banks it will look like you are a cooperating person, instead of uncooperative. Does that make sense?
What happens if you file bankruptcy in the middle of this timeline? Welp, the process is put on hold until you come out of bankruptcy(either via dismissal or release). Once you are out from under the bankruptcy protection, the property starts up where it left off.. So if you were 80 days in, and you filed bankruptcy, and then you came out of bankruptcy, there is 10 days left before your real estate is sold.
One other caveat is:
Before selling mortgaged property, the sheriff must advertise the sale by publication once each week for three (3) successive weeks in a daily or weekly newspaper of general circulation. The sheriff shall publish the advertisement in at least one (1) newspaper published and circulated in each county where the real estate is situated. The first publication shall be made at least thirty (30) days before the date of sale.
Now that publication caveat, might give you 30 days if you used the bankruptcy scenario above, but I wouldn’t count on it.. There is a couple of CYA in the Code, that allows the Sherriff to “dispense with publication”.
The full Indiana code can be found here!
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