CHAPTER 10. MORTGAGE FORECLOSURE ACTIONS
IC 32-30-10
Chapter 10. Mortgage Foreclosure Actions
IC 32-30-10-1
"Auctioneer" defined
Sec. 1. As used in this chapter, "auctioneer" means an auctioneerlicensed under IC 25-6.1.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-2
"Economically feasible"; required findings
Sec. 2. For purposes of section 9 of this chapter, the sale of aproperty through the services of an auctioneer is "economicallyfeasible" if the court determines that:
(1) a reasonable probability exists that, with the use of theservices of an auctioneer, a valid and enforceable bid will bemade at a foreclosure for a sale price equal to or greater thanthe amount of the judgment and the costs and expensesnecessary to its satisfaction, including the costs of theauctioneer; and
(2) the reasonable probability would not exist without the useof an auctioneer.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-3
Mortgagee's right to foreclose if mortgagor defaults; venue
Sec. 3. (a) Subject to IC 32-30-10.5 with respect to mortgagetransactions described in IC 32-30-10.5-5, if a mortgagor defaults inthe performance of any condition contained in a mortgage, themortgagee or the mortgagee's assigns may proceed in the circuitcourt of the county where the real estate is located to foreclose theequity of redemption contained in the mortgage.
(b) If the real estate is located in more than one (1) county, thecircuit court of any county in which the real estate is located hasjurisdiction for an action for the foreclosure of the equity ofredemption contained in the mortgage.
As added by P.L.2-2002, SEC.15. Amended by P.L.105-2009,SEC.18.
IC 32-30-10-4
Remedy
Sec. 4. If there is not an express agreement in the mortgage or aseparate instrument for the payment of the sum secured by themortgage, the remedy of the mortgagee is confined to the propertymortgaged.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-5
Judgment of foreclosure; personal judgment; sale of property
Sec. 5. In rendering judgment of foreclosure, the courts shall: (1) give personal judgment against any party to the suit liableupon any agreement for the payment of any sum of moneysecured by the mortgage; and
(2) order the mortgaged premises, or as much of the mortgagedpremises as may be necessary to satisfy the mortgage and courtcosts, to be sold first before the sale of other property of thedefendant.
The judgment is satisfied by the payment of the mortgage debt, withinterest and costs, at any time before sale.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-6
Satisfaction of judgment; recording; recorder's fee
Sec. 6. Upon:
(1) the foreclosure of a recorded mortgage in a court of anycounty having jurisdiction in Indiana; and
(2) the payment and satisfaction of the judgment as may berendered in the foreclosure proceeding;
the prevailing party shall immediately after satisfaction of thejudgment record the satisfaction of the mortgage on the records ofthe recorder's office of the county where the property is located. Therecord in foreclosure and satisfaction must show that the whole debt,secured by the mortgage, has been paid. The recorder must be paida fee of not more than the amount specified in IC 36-2-7-10(b)(1) andIC 36-2-7-10(b)(2) in each case of foreclosure requiring satisfaction.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-7
Balance due and costs that remain unsatisfied levied on anyproperty of debtor
Sec. 7. If there is an express written agreement for the payment ofthe sum of money that is secured by a mortgage or a separateinstrument, the court shall direct in the order of sale that the balancedue on the mortgage and costs that may remain unsatisfied after thesale of the mortgaged premises be levied on any property of themortgage-debtor.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-8
Order of sale; certification; sheriff's sale; sale of remainingproperty to pay unsatisfied judgment, interest, and costs
Sec. 8. (a) The copy of the court's order of sale and judgment shallbe issued and certified by the clerk under the seal of the court to thesheriff.
(b) After receiving the order under subsection (a), the sheriff shallproceed to sell the mortgaged premises, or as much of the mortgagedpremises as is necessary to satisfy the judgment, interest, and costs.If any part of the judgment, interest, and costs remain unsatisfiedafter the sale of the mortgaged premises, the sheriff shall proceed tosell the remaining property of the defendant. If the mortgaged
property is located in more than one (1) county, a commondescription of the property, the sale of the property, and the locationof the sale must be advertised in each county where the property islocated.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-9
Manner of sale; use of auctioneer; auctioneer's fee
Sec. 9. (a) A sheriff shall sell property on foreclosure in a mannerthat is reasonably likely to bring the highest net proceeds from thesale after deducting the expenses of the offer and sale.
(b) Upon prior petition of the debtor or a creditor involved in theforeclosure proceedings, the court in its order of foreclosure shallorder the property sold by the sheriff through the services of theauctioneer requested by the petitioner and approved by the court if:
(1) the court determines that a sale is economically feasible; or
(2) all the creditors in the proceedings agree to both that methodof sale and the compensation to be paid the auctioneer.
(c) The sheriff shall engage the auctioneer not later than fourteen(14) calendar days after the date of the order entered by the courtunder subsection (b). The auctioneer shall schedule the auction andconduct the auctioneer's activities as appropriate to bring the highestbid for the property on foreclosure. The advertising conducted by theauctioneer is in addition to any other notice required by law.
(d) The auctioneer's fee must be a reasonable amount stated in thecourt's order. However, if the sale by use of an auctioneer has notbeen agreed to by the creditors in the proceedings and the sale priceis less than the amount of the judgment and the costs and expensesnecessary to the satisfaction of the judgment, the auctioneer isentitled only to the auctioneer's advertising expenses plus onehundred dollars ($100). The amount due to the auctioneer on accountof the auctioneer's expenses and fee, if any, must be paid as a cost ofthe sale from the proceeds before the payment of any other payment.
As added by P.L.2-2002, SEC.15. Amended by P.L.167-2005, SEC.2.
IC 32-30-10-10
Mutually exclusive actions
Sec. 10. A plaintiff may not:
(1) proceed to foreclose the mortgagee's mortgage:
(A) while the plaintiff is prosecuting any other action for thesame debt or matter that is secured by the mortgage;
(B) while the plaintiff is seeking to obtain execution of anyjudgment in any other action; or
(C) until the notice under IC 32-30-10.5-8(a) has been sent,if required, in the case of a mortgage transaction describedin IC 32-30-10.5-5; or
(2) prosecute any other action for the same matter while theplaintiff is foreclosing the mortgagee's mortgage or prosecutinga judgment of foreclosure.
As added by P.L.2-2002, SEC.15. Amended by P.L.105-2009,
SEC.19.
IC 32-30-10-11
Payment of principal, interest, and costs before final judgment;dismissal; payment after final judgment; stay
Sec. 11. (a) If:
(1) a complaint is filed for the foreclosure of a mortgage;
(2) any interest or installment of the principal is due, but noother installments are due; and
(3) the defendant pays the court the principal and interest due,with costs, at any time before final judgment;
the complaint must be dismissed.
(b) If the defendant pays the court the principal and interest dueafter the final judgment, the proceedings on the final judgment mustbe stayed. However, the stay may be removed upon a subsequentdefault in the payment of any installment of the principal or interestafter the payment is due.
(c) In the final judgment, the court shall direct at what time andupon what default any subsequent execution shall issue.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-12
Sale of property in parcels
Sec. 12. (a) In cases under this chapter, the court shall ascertainwhether the property can be sold in parcels. If the property can besold in parcels without injury to the interest of the parties, the courtshall direct that only as much of the premises be sold as will besufficient to pay the amount due on the mortgage, with costs, and thejudgment shall remain and be enforced upon any subsequent default,unless the amount due is paid before execution of the judgment iscompleted.
(b) If the mortgaged premises cannot be sold in parcels, the courtshall order the whole mortgaged premises to be sold.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-13
Endorsement of an execution issued on a judgment
Sec. 13. If an execution is issued on a judgment recovered for adebt secured by mortgage of real property, the plaintiff shall endorseon the execution a brief description of the mortgaged premises.However, the equity of redemption may not be sold on the executionof judgment.
As added by P.L.2-2002, SEC.15.
IC 32-30-10-14
Application of proceeds of sale; disposition of excess proceeds
Sec. 14. The proceeds of a sale described in IC 32-29-7 or section8 or 12(b) of this chapter must be applied in the following order:
(1) Expenses of the offer and sale, including expenses incurredunder IC 32-29-7-4 or section 9 of this chapter (or
IC 34-1-53-6.5 or IC 32-15-6-6.5 before their repeal).
(2) The payment of the principal due, interest, and costs notdescribed in subdivision (1).
(3) The residue secured by the mortgage and not due.
(4) If the residue referred to in subdivision (3) does not bearinterest, a deduction must be made by discounting the legalinterest.
In all cases in which the proceeds of sale exceed the amountsdescribed in subdivisions (1) through (4), the surplus must be paid tothe clerk of the court to be transferred, as the court directs, to themortgage debtor, mortgage debtor's heirs, or other persons assignedby the mortgage debtor.
As added by P.L.2-2002, SEC.15. Amended by P.L.88-2009, SEC.3;P.L.182-2009(ss), SEC.390; P.L.73-2010, SEC.9.