IC 24-5.5-5
    Chapter 5. Limitations on Foreclosure Consultants andForeclosure Reconveyances

IC 24-5.5-5-1
Rebuttable presumptions; homeowner's ability to pay uponreconveyance
    Sec. 1. For purposes of this chapter, there is a rebuttablepresumption that:
        (1) a homeowner has a reasonable ability to pay for asubsequent reconveyance of real property if the homeowner'spayments for primary housing expenses and regular principaland interest payments on other personal debt, on a monthlybasis, do not exceed sixty percent (60%) of the homeowner'smonthly gross income; and
        (2) the foreclosure purchaser has not verified reasonablepayment ability if the foreclosure purchaser has not obtaineddocuments other than a statement by the homeowner of assets,liability, and income.
As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-2
Foreclosure consultants; prohibited acts
    Sec. 2. In addition to any prohibitions that apply underIC 24-5-15-1 through IC 24-5-15-8, a foreclosure consultant may not:
        (1) enter into or attempt to enter into a foreclosure consultantcontract with a homeowner unless the foreclosure consultantfirst provides the homeowner written notice of the homeowner'srights under this article;
        (2) demand or receive compensation until after the foreclosureconsultant has fully performed all services the foreclosureconsultant contracted to perform or represented that theforeclosure consultant would perform, unless the foreclosureconsultant complies with the security requirements underIC 24-5-15-8;
        (3) demand or receive a fee, interest, or any other compensationthat exceeds eight percent (8%) per year of the amount of anyloan that the foreclosure consultant makes to the homeowner;
        (4) take a wage assignment, a lien of any type on real orpersonal property, or any other security to secure the paymentof compensation;
        (5) receive consideration from a third party in connection withforeclosure consulting services provided to a homeowner unlessthe consideration is first fully disclosed in writing to thehomeowner;
        (6) acquire any interest, directly or indirectly, in residential realproperty in foreclosure from a homeowner with whom theforeclosure consultant has contracted; or
        (7) except to inspect documents as provided by law, take anypower of attorney from a homeowner for any purpose.As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-3
Foreclosure purchasers; prohibited acts
    Sec. 3. A foreclosure purchaser may not enter into or attempt toenter into a foreclosure reconveyance agreement with a homeownerunless the:
        (1) foreclosure purchaser verifies and demonstrates that thehomeowner has or will have a reasonable ability to:
            (A) pay for the subsequent reconveyance of the propertyback to the homeowner on completion of the terms of theforeclosure conveyance; or
            (B) if the foreclosure conveyance provides for a lease withan option to repurchase the real property, make the leasepayment and repurchase the real property within the periodof the option to repurchase;
        (2) foreclosure purchaser provides the homeowner writtennotice of the homeowner's rights under this article;
        (3) foreclosure purchaser and the homeowner complete a formalsettlement before any transfer of interest in the affectedproperty; and
        (4) foreclosure purchaser complies with the securityrequirements under IC 24-5-15-8.
As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-4
Foreclosure purchasers; duties to homeowners
    Sec. 4. A foreclosure purchaser shall:
        (1) ensure that title to real property has been reconveyed to thehomeowner in a timely manner if the terms of a foreclosurereconveyance agreement require a reconveyance; or
        (2) if the real property subject to a foreclosure reconveyanceagreement is sold within eighteen (18) months after enteringinto the foreclosure reconveyance agreement, make payment tothe homeowner not later than ninety (90) days after the resaleof the real property in an amount equal to at least sixty-sixpercent (66%) of the net proceeds from the resale of theproperty.
As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-5
Foreclosure purchasers; unfair conduct; prohibitedrepresentations and acts
    Sec. 5. A foreclosure purchaser may not:
        (1) enter into repurchase or lease terms as part of theforeclosure reconveyance that are unfair or commerciallyunreasonable or engage in any other unfair conduct;
        (2) represent, directly or indirectly, that the:
            (A) foreclosure purchaser is acting:
                (i) as an adviser or a consultant; or                (ii) in any other manner on behalf of the homeowner;
            (B) foreclosure purchaser is assisting the homeowner to savethe residence; or
            (C) foreclosure purchaser is assisting the homeowner inpreventing a foreclosure if the result of the transaction is thatthe homeowner will not complete a redemption of theproperty; or
        (3) until the homeowner's right to rescind or cancel theforeclosure reconveyance agreement has expired:
            (A) record any document, including an instrument orconveyance, signed by the homeowner; or
            (B) transfer to a third party or encumber, or purport totransfer to a third party or encumber, any interest in theresidential real property in foreclosure.
As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-6
Foreclosure purchasers; accounting to homeowner after resale ofproperty
    Sec. 6. A foreclosure purchaser shall make a detailed accountingof the basis for the amount of payment made to a homeowner of realproperty resold within eighteen (18) months after entering into aforeclosure reconveyance agreement on a form prescribed by theattorney general.
As added by P.L.209-2007, SEC.2.

IC 24-5.5-5-7.2
Duty to retain records for three years
    Sec. 7.2. A foreclosure consultant shall retain all records anddocuments, including the foreclosure consultant contract, related toservices performed on behalf of a homeowner for at least three (3)years after the termination or conclusion of the foreclosureconsultant contract entered into by the foreclosure consultant and thehomeowner.
As added by P.L.52-2009, SEC.3; P.L.105-2009, SEC.6.