IC 24-5.5-5
Chapter 5. Limitations on Foreclosure Consultants and
Foreclosure Reconveyances
IC 24-5.5-5-1 Rebuttable presumptions; homeowner's ability to pay upon
reconveyance
Sec. 1. For purposes of this chapter, there is a rebuttable
presumption that:
(1) a homeowner has a reasonable ability to pay for a
subsequent reconveyance of real property if the homeowner's
payments for primary housing expenses and regular principal
and interest payments on other personal debt, on a monthly
basis, do not exceed sixty percent (60%) of the homeowner's
monthly gross income; and
(2) the foreclosure purchaser has not verified reasonable
payment ability if the foreclosure purchaser has not obtained
documents 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 under
IC 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 consultant
contract with a homeowner unless the foreclosure consultant
first provides the homeowner written notice of the homeowner's
rights under this article;
(2) demand or receive compensation until after the foreclosure
consultant has fully performed all services the foreclosure
consultant contracted to perform or represented that the
foreclosure consultant would perform, unless the foreclosure
consultant complies with the security requirements under
IC 24-5-15-8;
(3) demand or receive a fee, interest, or any other compensation
that exceeds eight percent (8%) per year of the amount of any
loan that the foreclosure consultant makes to the homeowner;
(4) take a wage assignment, a lien of any type on real or
personal property, or any other security to secure the payment
of compensation;
(5) receive consideration from a third party in connection with
foreclosure consulting services provided to a homeowner unless
the consideration is first fully disclosed in writing to the
homeowner;
(6) acquire any interest, directly or indirectly, in residential real
property in foreclosure from a homeowner with whom the
foreclosure consultant has contracted; or
(7) except to inspect documents as provided by law, take any
power 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 to
enter into a foreclosure reconveyance agreement with a homeowner
unless the:
(1) foreclosure purchaser verifies and demonstrates that the
homeowner has or will have a reasonable ability to:
(A) pay for the subsequent reconveyance of the property
back to the homeowner on completion of the terms of the
foreclosure conveyance; or
(B) if the foreclosure conveyance provides for a lease with
an option to repurchase the real property, make the lease
payment and repurchase the real property within the period
of the option to repurchase;
(2) foreclosure purchaser provides the homeowner written
notice of the homeowner's rights under this article;
(3) foreclosure purchaser and the homeowner complete a formal
settlement before any transfer of interest in the affected
property; and
(4) foreclosure purchaser complies with the security
requirements 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 the
homeowner in a timely manner if the terms of a foreclosure
reconveyance agreement require a reconveyance; or
(2) if the real property subject to a foreclosure reconveyance
agreement is sold within eighteen (18) months after entering
into the foreclosure reconveyance agreement, make payment to
the homeowner not later than ninety (90) days after the resale
of the real property in an amount equal to at least sixty-six
percent (66%) of the net proceeds from the resale of the
property. As added by P.L.209-2007, SEC.2.
IC 24-5.5-5-5 Foreclosure purchasers; unfair conduct; prohibited
representations and acts
Sec. 5. A foreclosure purchaser may not:
(1) enter into repurchase or lease terms as part of the
foreclosure reconveyance that are unfair or commercially
unreasonable 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 save
the residence; or
(C) foreclosure purchaser is assisting the homeowner in
preventing a foreclosure if the result of the transaction is that
the homeowner will not complete a redemption of the
property; or
(3) until the homeowner's right to rescind or cancel the
foreclosure reconveyance agreement has expired:
(A) record any document, including an instrument or
conveyance, signed by the homeowner; or
(B) transfer to a third party or encumber, or purport to
transfer to a third party or encumber, any interest in the
residential 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 of
property
Sec. 6. A foreclosure purchaser shall make a detailed accounting
of the basis for the amount of payment made to a homeowner of real
property resold within eighteen (18) months after entering into a
foreclosure reconveyance agreement on a form prescribed by the
attorney 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 and
documents, including the foreclosure consultant contract, related to
services performed on behalf of a homeowner for at least three (3)
years after the termination or conclusion of the foreclosure
consultant contract entered into by the foreclosure consultant and the
homeowner. As added by P.L.52-2009, SEC.3; P.L.105-2009, SEC.6.
IC 24-5.5-5
Chapter 5. Limitations on Foreclosure Consultants and
Foreclosure Reconveyances
IC 24-5.5-5-1 Rebuttable presumptions; homeowner's ability to pay upon
reconveyance
Sec. 1. For purposes of this chapter, there is a rebuttable
presumption that:
(1) a homeowner has a reasonable ability to pay for a
subsequent reconveyance of real property if the homeowner's
payments for primary housing expenses and regular principal
and interest payments on other personal debt, on a monthly
basis, do not exceed sixty percent (60%) of the homeowner's
monthly gross income; and
(2) the foreclosure purchaser has not verified reasonable
payment ability if the foreclosure purchaser has not obtained
documents 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 under
IC 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 consultant
contract with a homeowner unless the foreclosure consultant
first provides the homeowner written notice of the homeowner's
rights under this article;
(2) demand or receive compensation until after the foreclosure
consultant has fully performed all services the foreclosure
consultant contracted to perform or represented that the
foreclosure consultant would perform, unless the foreclosure
consultant complies with the security requirements under
IC 24-5-15-8;
(3) demand or receive a fee, interest, or any other compensation
that exceeds eight percent (8%) per year of the amount of any
loan that the foreclosure consultant makes to the homeowner;
(4) take a wage assignment, a lien of any type on real or
personal property, or any other security to secure the payment
of compensation;
(5) receive consideration from a third party in connection with
foreclosure consulting services provided to a homeowner unless
the consideration is first fully disclosed in writing to the
homeowner;
(6) acquire any interest, directly or indirectly, in residential real
property in foreclosure from a homeowner with whom the
foreclosure consultant has contracted; or
(7) except to inspect documents as provided by law, take any
power 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 to
enter into a foreclosure reconveyance agreement with a homeowner
unless the:
(1) foreclosure purchaser verifies and demonstrates that the
homeowner has or will have a reasonable ability to:
(A) pay for the subsequent reconveyance of the property
back to the homeowner on completion of the terms of the
foreclosure conveyance; or
(B) if the foreclosure conveyance provides for a lease with
an option to repurchase the real property, make the lease
payment and repurchase the real property within the period
of the option to repurchase;
(2) foreclosure purchaser provides the homeowner written
notice of the homeowner's rights under this article;
(3) foreclosure purchaser and the homeowner complete a formal
settlement before any transfer of interest in the affected
property; and
(4) foreclosure purchaser complies with the security
requirements 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 the
homeowner in a timely manner if the terms of a foreclosure
reconveyance agreement require a reconveyance; or
(2) if the real property subject to a foreclosure reconveyance
agreement is sold within eighteen (18) months after entering
into the foreclosure reconveyance agreement, make payment to
the homeowner not later than ninety (90) days after the resale
of the real property in an amount equal to at least sixty-six
percent (66%) of the net proceeds from the resale of the
property. As added by P.L.209-2007, SEC.2.
IC 24-5.5-5-5 Foreclosure purchasers; unfair conduct; prohibited
representations and acts
Sec. 5. A foreclosure purchaser may not:
(1) enter into repurchase or lease terms as part of the
foreclosure reconveyance that are unfair or commercially
unreasonable 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 save
the residence; or
(C) foreclosure purchaser is assisting the homeowner in
preventing a foreclosure if the result of the transaction is that
the homeowner will not complete a redemption of the
property; or
(3) until the homeowner's right to rescind or cancel the
foreclosure reconveyance agreement has expired:
(A) record any document, including an instrument or
conveyance, signed by the homeowner; or
(B) transfer to a third party or encumber, or purport to
transfer to a third party or encumber, any interest in the
residential 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 of
property
Sec. 6. A foreclosure purchaser shall make a detailed accounting
of the basis for the amount of payment made to a homeowner of real
property resold within eighteen (18) months after entering into a
foreclosure reconveyance agreement on a form prescribed by the
attorney 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 and
documents, including the foreclosure consultant contract, related to
services performed on behalf of a homeowner for at least three (3)
years after the termination or conclusion of the foreclosure
consultant contract entered into by the foreclosure consultant and the
homeowner. As added by P.L.52-2009, SEC.3; P.L.105-2009, SEC.6.
IC 24-5.5-5
Chapter 5. Limitations on Foreclosure Consultants and
Foreclosure Reconveyances
IC 24-5.5-5-1 Rebuttable presumptions; homeowner's ability to pay upon
reconveyance
Sec. 1. For purposes of this chapter, there is a rebuttable
presumption that:
(1) a homeowner has a reasonable ability to pay for a
subsequent reconveyance of real property if the homeowner's
payments for primary housing expenses and regular principal
and interest payments on other personal debt, on a monthly
basis, do not exceed sixty percent (60%) of the homeowner's
monthly gross income; and
(2) the foreclosure purchaser has not verified reasonable
payment ability if the foreclosure purchaser has not obtained
documents 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 under
IC 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 consultant
contract with a homeowner unless the foreclosure consultant
first provides the homeowner written notice of the homeowner's
rights under this article;
(2) demand or receive compensation until after the foreclosure
consultant has fully performed all services the foreclosure
consultant contracted to perform or represented that the
foreclosure consultant would perform, unless the foreclosure
consultant complies with the security requirements under
IC 24-5-15-8;
(3) demand or receive a fee, interest, or any other compensation
that exceeds eight percent (8%) per year of the amount of any
loan that the foreclosure consultant makes to the homeowner;
(4) take a wage assignment, a lien of any type on real or
personal property, or any other security to secure the payment
of compensation;
(5) receive consideration from a third party in connection with
foreclosure consulting services provided to a homeowner unless
the consideration is first fully disclosed in writing to the
homeowner;
(6) acquire any interest, directly or indirectly, in residential real
property in foreclosure from a homeowner with whom the
foreclosure consultant has contracted; or
(7) except to inspect documents as provided by law, take any
power 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 to
enter into a foreclosure reconveyance agreement with a homeowner
unless the:
(1) foreclosure purchaser verifies and demonstrates that the
homeowner has or will have a reasonable ability to:
(A) pay for the subsequent reconveyance of the property
back to the homeowner on completion of the terms of the
foreclosure conveyance; or
(B) if the foreclosure conveyance provides for a lease with
an option to repurchase the real property, make the lease
payment and repurchase the real property within the period
of the option to repurchase;
(2) foreclosure purchaser provides the homeowner written
notice of the homeowner's rights under this article;
(3) foreclosure purchaser and the homeowner complete a formal
settlement before any transfer of interest in the affected
property; and
(4) foreclosure purchaser complies with the security
requirements 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 the
homeowner in a timely manner if the terms of a foreclosure
reconveyance agreement require a reconveyance; or
(2) if the real property subject to a foreclosure reconveyance
agreement is sold within eighteen (18) months after entering
into the foreclosure reconveyance agreement, make payment to
the homeowner not later than ninety (90) days after the resale
of the real property in an amount equal to at least sixty-six
percent (66%) of the net proceeds from the resale of the
property. As added by P.L.209-2007, SEC.2.
IC 24-5.5-5-5 Foreclosure purchasers; unfair conduct; prohibited
representations and acts
Sec. 5. A foreclosure purchaser may not:
(1) enter into repurchase or lease terms as part of the
foreclosure reconveyance that are unfair or commercially
unreasonable 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 save
the residence; or
(C) foreclosure purchaser is assisting the homeowner in
preventing a foreclosure if the result of the transaction is that
the homeowner will not complete a redemption of the
property; or
(3) until the homeowner's right to rescind or cancel the
foreclosure reconveyance agreement has expired:
(A) record any document, including an instrument or
conveyance, signed by the homeowner; or
(B) transfer to a third party or encumber, or purport to
transfer to a third party or encumber, any interest in the
residential 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 of
property
Sec. 6. A foreclosure purchaser shall make a detailed accounting
of the basis for the amount of payment made to a homeowner of real
property resold within eighteen (18) months after entering into a
foreclosure reconveyance agreement on a form prescribed by the
attorney 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 and
documents, including the foreclosure consultant contract, related to
services performed on behalf of a homeowner for at least three (3)
years after the termination or conclusion of the foreclosure
consultant contract entered into by the foreclosure consultant and the
homeowner. As added by P.L.52-2009, SEC.3; P.L.105-2009, SEC.6.
