IC 32-30-10.5
    Chapter 10.5. Foreclosure Prevention Agreements for ResidentialMortgages

IC 32-30-10.5-1
Legislative findings; purpose
    Sec. 1. (a) The general assembly makes the following findings:
        (1) Indiana faces a serious threat to its state economy and to theeconomies of its political subdivisions because of Indiana's highrate of residential mortgage foreclosures, which constitutes anemergency.
        (2) Indiana's high rate of residential mortgage foreclosures hasadversely affected property values in Indiana, and may have aneven greater adverse effect on property values if the foreclosurerate continues to rise.
        (3) It is in the public interest for the state to modify theforeclosure process to encourage mortgage modificationalternatives.
    (b) The purpose of this chapter is to avoid unnecessaryforeclosures of residential properties and thereby provide stability toIndiana's statewide and local economies by:
        (1) requiring early contact and communications amongcreditors, their authorized agents, and debtors in order to engagein negotiations that could avoid foreclosure; and
        (2) facilitating the modification of residential mortgages inappropriate circumstances.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-2
"Creditor"
    Sec. 2. (a) As used in this chapter, "creditor" means a person:
        (1) that regularly engages in the extension of mortgages that aresubject to a credit service charge or loan finance charge, asapplicable, or are payable by written agreement in more thanfour (4) installments (not including a down payment); and
        (2) to which the obligation is initially payable, either on the faceof the note or contract, or by agreement if there is not a note orcontract.
    (b) The term includes a mortgage servicer.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-3
"Debtor"
    Sec. 3. As used in this chapter, "debtor", with respect to amortgage, refers to the maker of the note secured by the mortgage.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-4
"Foreclosure prevention agreement"
    Sec. 4. As used in this chapter, "foreclosure prevention

agreement" means a written agreement that:
        (1) is executed by both the creditor and the debtor; and
        (2) offers the debtor an individualized plan that may include:
            (A) a temporary forbearance with respect to the mortgage;
            (B) a reduction of any arrearage owed by the debtor;
            (C) a reduction of the interest rate that applies to themortgage;
            (D) a repayment plan;
            (E) a deed in lieu of foreclosure;
            (F) reinstatement of the mortgage upon the debtor's paymentof any arrearage;
            (G) a sale of the property; or
            (H) any loss mitigation arrangement or debtor relief planestablished by federal law, rule, regulation, or guideline.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-5
"Mortgage"
    Sec. 5. As used in this chapter, "mortgage" means a loan in whicha first mortgage, or a land contract that constitutes a first lien, iscreated or retained against land upon which there is a dwelling thatis or will be used by the debtor primarily for personal, family, orhousehold purposes.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-6
"Mortgage foreclosure counselor"
    Sec. 6. As used in this chapter, "mortgage foreclosure counselor"means a foreclosure prevention counselor who is part of, or has beentrained or certified by, the Indiana Foreclosure Prevention Network.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-7
"Mortgage servicer"
    Sec. 7. As used in this chapter, "mortgage servicer" means the lastperson to whom:
        (1) a debtor in a mortgage; or
        (2) the debtor's successor in interest;
has been instructed to send payments on the mortgage.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-8 Version a
Presuit notice before filing of foreclosure action; contents; noticeupon filing of action; debtor's right to settlement conference;exceptions to notice requirements
    Note: This version of section effective until 1-1-2011. See alsofollowing version of this section, effective 1-1-2011.
    Sec. 8. (a) This section applies to a foreclosure action that is filedafter June 30, 2009. Except as provided in subsection (e) and section10(g) of this chapter, not later than thirty (30) days before a creditor

files an action for foreclosure, the creditor shall send to the debtor bycertified mail a presuit notice on a form prescribed by the Indianahousing and community development authority created byIC 5-20-1-3. In prescribing the form required by this section, theIndiana housing and community development authority shall includein the notice the statement set forth in IC 24-5.5-3-1. In addition, thenotice required by this subsection must:
        (1) inform the debtor that:
            (A) the debtor is in default; and
            (B) the debtor is encouraged to obtain assistance from amortgage foreclosure counselor; and
        (2) provide the contact information for the Indiana ForeclosurePrevention Network.
    (b) The notice required by subsection (a) shall be sent to:
        (1) the address of the mortgaged property; or
        (2) the last known mailing address of the debtor if the creditor'srecords indicate that the mailing address of the debtor is otherthan the address of the mortgaged property.
If the creditor provides evidence that the notice required bysubsection (a) was sent by certified mail, return receipt requested,and as prescribed by this subsection, it is not necessary that thedebtor accept receipt of the notice for an action to proceed asallowed under this chapter.
    (c) Except as provided in subsection (e) and section 10(g) of thischapter, if a creditor files an action to foreclose a mortgage, thecreditor shall include with the complaint served on the debtor anotice that informs the debtor of the debtor's right to participate in asettlement conference. The notice must be in a form prescribed bythe Indiana housing and community development authority createdby IC 5-20-1-3. The notice must inform the debtor that the debtormay schedule a settlement conference by notifying the court, notlater than thirty (30) days after the notice is served, of the debtor'sintent to participate in a settlement conference.
    (d) In a foreclosure action filed under IC 32-30-10-3 after June 30,2009, the creditor shall attach to the complaint filed with the court acopy of the notices sent to the debtor under subsections (a) and (c).
    (e) A creditor is not required to send the notices described in thissection if:
        (1) the loan is secured by a dwelling that is not the debtor'sprimary residence;
        (2) the loan has been the subject of a prior foreclosureprevention agreement under this chapter and the debtor hasdefaulted with respect to the terms of that foreclosureprevention agreement; or
        (3) bankruptcy law prohibits the creditor from participating ina settlement conference under this chapter with respect to theloan.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-8 Version b Presuit notice before filing of foreclosure action; contents; noticeupon filing of action; debtor's right to settlement conference;exceptions to notice requirements
    Note: This version of section effective 1-1-2011. See alsopreceding version of this section, effective until 1-1-2011.
    Sec. 8. (a) This section applies to a foreclosure action that is filedafter June 30, 2009. Except as provided in subsection (e) and section10(g) of this chapter, not later than thirty (30) days before a creditorfiles an action for foreclosure, the creditor shall send to the debtor bycertified mail a presuit notice on a form prescribed by the Indianahousing and community development authority created byIC 5-20-1-3. The notice required by this subsection must do thefollowing:
        (1) Inform the debtor that:
            (A) the debtor is in default;
            (B) the debtor is encouraged to obtain assistance from amortgage foreclosure counselor; and
            (C) if the creditor proceeds to file a foreclosure action andobtains a foreclosure judgment, the debtor has a right to dothe following before a sheriff's sale is conducted:
                (i) Appeal a finding of abandonment by a court underIC 32-29-7-3(a)(2).
                (ii) Redeem the real estate from the judgment underIC 32-29-7-7.
                (iii) Retain possession of the property underIC 32-29-7-11(b), subject to the conditions set forth inIC 32-29-7-11(b).
        (2) Provide the contact information for the Indiana ForeclosurePrevention Network.
        (3) Include the following statement printed in at least 14 pointboldface type:
                "NOTICE REQUIRED BY STATE LAW
                Mortgage foreclosure is a complex process. People mayapproach you about "saving" your home. You should becareful about any such promises. There are governmentagencies and nonprofit organizations you may contact forhelpful information about the foreclosure process. For thename and telephone number of an organization near you,please call the Indiana Foreclosure Prevention Network.".
    (b) The notice required by subsection (a) shall be sent to:
        (1) the address of the mortgaged property; or
        (2) the last known mailing address of the debtor if the creditor'srecords indicate that the mailing address of the debtor is otherthan the address of the mortgaged property.
If the creditor provides evidence that the notice required bysubsection (a) was sent by certified mail, return receipt requested,and as prescribed by this subsection, it is not necessary that thedebtor accept receipt of the notice for an action to proceed asallowed under this chapter.
    (c) Except as provided in subsection (e) and section 10(g) of this

chapter, if a creditor files an action to foreclose a mortgage, thecreditor shall include with the complaint served on the debtor anotice that informs the debtor of the debtor's right to participate in asettlement conference. The notice must be in a form prescribed bythe Indiana housing and community development authority createdby IC 5-20-1-3. The notice must inform the debtor that the debtormay schedule a settlement conference by notifying the court, notlater than thirty (30) days after the notice is served, of the debtor'sintent to participate in a settlement conference.
    (d) In a foreclosure action filed under IC 32-30-10-3 after June 30,2009, the creditor shall attach to the complaint filed with the court acopy of the notices sent to the debtor under subsections (a) and (c).
    (e) A creditor is not required to send the notices described in thissection if:
        (1) the mortgage is secured by a dwelling that is not the debtor'sprimary residence;
        (2) the mortgage has been the subject of a prior foreclosureprevention agreement under this chapter and the debtor hasdefaulted with respect to the terms of that foreclosureprevention agreement; or
        (3) bankruptcy law prohibits the creditor from participating ina settlement conference under this chapter with respect to themortgage.
As added by P.L.105-2009, SEC.20. Amended by P.L.68-2010,SEC.3.

IC 32-30-10.5-9
Conditions for court's issuance of judgment of foreclosure;exceptions
    Sec. 9. (a) Except as provided in subsection (b), after June 30,2009, a court may not issue a judgment of foreclosure underIC 32-30-10 on a mortgage subject to this chapter unless all of thefollowing apply:
        (1) The creditor has given the notice required under section 8(c)of this chapter.
        (2) The debtor either:
            (A) does not contact the court within the thirty (30) dayperiod described in section 8(c) of this chapter to schedulea settlement conference under section 8(c) of this chapter; or
            (B) contacts the court within the thirty (30) day perioddescribed in section 8(c) of this chapter to schedule aconference under section 8(c) of this chapter and, uponconclusion of the conference, the parties are unable to reachagreement on the terms of a foreclosure preventionagreement.
        (3) At least sixty (60) days have elapsed since the date thenotice required by section 8(a) of this chapter was sent, unlessthe mortgaged property is abandoned.
    (b) If the court finds that a settlement conference would be oflimited value based on the result of a prior loss mitigation effort

between the creditor and the debtor:
        (1) a settlement conference is not required under this chapter;and
        (2) the conditions set forth in subsection (a) do not apply, andthe foreclosure action may proceed as otherwise allowed bylaw.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-10
Debtor's request for settlement conference; court's notice;contents; conference participants; persons representing thecreditor; duty to notify court of result; settlement conference tosatisfy court's mediation or alternative dispute resolution rules
    Sec. 10. (a) Unless a settlement conference is not required underthis chapter, the court shall issue a notice of a settlement conferenceif the debtor contacts the court to schedule a settlement conferenceas described in section 8(c) of this chapter. The court's notice of asettlement conference must do the following:
        (1) Order the creditor and the debtor to conduct a settlementconference on or before a date and time specified in the notice,which date must not be earlier than twenty-five (25) days afterthe date of the notice or later than sixty (60) days after the dateof the notice, for the purpose of attempting to negotiate aforeclosure prevention agreement.
        (2) Encourage the debtor to contact a mortgage foreclosurecounselor before the date of the settlement conference. Thenotice must provide the contact information for the IndianaForeclosure Prevention Network.
        (3) Require the debtor to bring to the settlement conference thefollowing documents needed to engage in good faithnegotiations with the creditor:
            (A) Documentation of the debtor's present and projectedfuture income, expenses, assets, and liabilities, includingdocumentation of the debtor's employment history.
            (B) Any other documentation or information that the courtdetermines is needed for the debtor to engage in good faithnegotiations with the creditor. The court shall identify anydocuments required under this clause with enoughspecificity to allow the debtor to obtain the documentsbefore the scheduled settlement conference.
        (4) Require the creditor to bring to the settlement conferencethe following transaction history for the mortgage:
            (A) A copy of the original note and mortgage.
            (B) A payment record substantiating the default.
            (C) An itemization of all amounts claimed by the creditor asbeing owed on the mortgage.
            (D) Any other documentation that the court determines isneeded.
        (5) Inform the parties that:
            (A) each party has the right to be represented by an attorney

or assisted by a mortgage foreclosure counselor at thesettlement conference; and
            (B) an attorney or a mortgage foreclosure counselor mayparticipate in the settlement conference in person or bytelephone.
        (6) Inform the parties that the settlement conference will beconducted at the county courthouse, or at another placedesignated by the court, on the date and time specified in thenotice under subdivision (1) unless the parties submit to thecourt a stipulation to:
            (A) modify the date, time, and place of the settlementconference; or
            (B) hold the settlement conference by telephone at a dateand time agreed to by the parties.
        If the parties stipulate under clause (B) to conduct thesettlement conference by telephone, the parties shall ensure theavailability of any technology needed to allow simultaneousparticipation in the settlement conference by all participants.
    (b) An attorney for the creditor shall attend the settlementconference, and an authorized representative of the creditor shall beavailable by telephone during the settlement conference. In addition,the court may require any person that is a party to the foreclosureaction to appear at or participate in a settlement conference heldunder this section, and, for cause shown, the court may order thecreditor and the debtor to reconvene a settlement conference at anytime before judgment is entered.
    (c) At the court's discretion, a settlement conference may or maynot be attended by a judicial officer.
    (d) The creditor shall ensure that any person representing thecreditor:
        (1) at a settlement conference scheduled under subsection (a);or
        (2) in any negotiations with the debtor designed to reachagreement on the terms of a foreclosure prevention agreement;
has authority to represent the creditor in negotiating a foreclosureprevention agreement with the debtor.
    (e) If, as a result of a settlement conference held under thissection, the debtor and the creditor agree to enter into a foreclosureprevention agreement, the agreement shall be reduced to writing andsigned by both parties, and each party shall retain a copy of thesigned agreement. Not later than seven (7) business days after thesigning of the foreclosure prevention agreement, the creditor shallfile with the court a copy of the signed agreement. At the election ofthe creditor, the foreclosure shall be dismissed or stayed for as longas the debtor complies with the terms of the foreclosure preventionagreement.
    (f) If, as a result of a settlement conference held under thissection, the debtor and the creditor are unable to agree on the termsof a foreclosure prevention agreement:
        (1) the creditor shall, not later than seven (7) business days after

the conclusion of the settlement conference, file with the courta notice indicating that the settlement conference held underthis section has concluded and a foreclosure preventionagreement was not reached; and
        (2) the foreclosure action filed by the creditor may proceed asotherwise allowed by law.
    (g) If:
        (1) a foreclosure is dismissed by the creditor under subsection(e) after a foreclosure prevention agreement is reached; and
        (2) a default in the terms of the foreclosure preventionagreement later occurs;
the creditor or its assigns may bring a foreclosure action underIC 32-30-10-3 without sending the notices described in section 8 ofthis chapter.
    (h) Participation in a settlement conference under this sectionsatisfies any mediation or alternative dispute resolution requirementestablished by court rule.
As added by P.L.105-2009, SEC.20.

IC 32-30-10.5-11
Foreclosure actions filed before July 1, 2009; court's duty toprovide notice of availability of settlement conference
    Sec. 11. (a) This section applies to a mortgage foreclosure actionwith respect to which the creditor has filed the complaint in theproceeding before July 1, 2009, and the court having jurisdictionover the proceeding has not rendered a judgment of foreclosurebefore July 1, 2009.
    (b) In a mortgage foreclosure action to which this section applies,the court having jurisdiction of the action shall serve notice of theavailability of a settlement conference under section 8(c) of thischapter.
As added by P.L.105-2009, SEC.20.