IC 32-29-7
Chapter 7. Foreclosure . Redemption, Sale, Right to Retain
Possession
IC 32-29-7-1 "Auctioneer"
Sec. 1. As used in this chapter, "auctioneer" means an auctioneer
licensed under IC 25-6.1. As added by P.L.2-2002, SEC.14.
IC 32-29-7-2 "Economically feasible"
Sec. 2. For the purposes of section 4(b) of this chapter, the sale of
property by the sheriff through the services of an auctioneer is
"economically feasible" if the court determines that:
(1) a reasonable probability exists that, with the use of the
services of an auctioneer, a valid and enforceable bid will be
made at a foreclosure for a sale price equal to or greater than
the amount of the judgment and the costs and expenses
necessary to its satisfaction, including the costs of the
auctioneer; and
(2) the reasonable probability would not exist without the use
of an auctioneer. As added by P.L.2-2002, SEC.14.
IC 32-29-7-3 Mortgage foreclosure; time for execution of judgment; right of
enforcement authority to file praecipe; sale by sheriff; advertising;
sheriff's fee
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 or an enforcement authority (as defined in
IC 36-7-9-2) 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.
(b) A judgment and decree in a proceeding to foreclose a
mortgage that is entered by a court having jurisdiction may be filed
with the clerk in any county as provided in IC 33-32-3-2. After the
period set forth in subsection (a) expires, a person who may enforce
the judgment and decree may file a praecipe with the clerk in any
county where the judgment and decree is filed, and the clerk shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court. However, if:
(1) a praecipe is not filed with the clerk within one hundred
eighty (180) days after the later of the dates on which:
(A) the period specified in subsection (a) expires; or
(B) the judgment and decree is filed; and
(2) the sale is not:
(A) otherwise prohibited by law;
(B) subject to a voluntary statewide foreclosure moratorium;
or
(C) subject to a written agreement that:
(i) provides for a delay in the sale of the mortgaged real
estate; and
(ii) is executed by and between the owner of the
mortgaged real estate and a party entitled to enforce the
judgment and decree;
an enforcement authority that has issued an abatement order under
IC 36-7-36-9 with respect to the mortgaged real estate may file a
praecipe with the clerk in any county where the judgment and decree
is filed. If an enforcement authority files a praecipe under this
subsection, the clerk of the county in which the praecipe is filed shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court.
(c) Upon receiving a certified judgment under subsection (b), the
sheriff shall, subject to section 4 of this chapter, sell the mortgaged
premises or as much of the mortgaged premises as necessary to
satisfy the judgment, interest, and costs at public auction at the office
of the sheriff or at another location that is reasonably likely to attract
higher competitive bids. The sheriff shall schedule the date and time
of the sheriff's sale for:
(1) a date not later than one hundred twenty (120) days after the
date on which the judgment and decree under seal of the court
are certified to the sheriff by the clerk; and
(2) a time certain between the hours of 10 a.m. and 4 p.m. on
any day of the week except Sunday.
(d) 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. At the time of placing the first advertisement
by publication, the sheriff shall also serve a copy of the written or
printed notice of sale upon each owner of the real estate. Service of
the written notice shall be made as provided in the Indiana Rules of
Trial Procedure governing service of process upon a person. The
sheriff shall charge a fee of ten dollars ($10) to one (1) owner and
three dollars ($3) to each additional owner for service of written
notice under this subsection. The fee is:
(1) a cost of the proceeding;
(2) to be collected as other costs of the proceeding are
collected; and
(3) to be deposited in the county general fund for appropriation
for operating expenses of the sheriff's department.
(e) The sheriff also shall post written or printed notices of the sale
at the door of the courthouse of each county in which the real estate
is located.
(f) If the sheriff is unable to procure the publication of a notice
within the county, the sheriff may dispense with publication. The
sheriff shall state that the sheriff was not able to procure the
publication and explain the reason why publication was not possible.
(g) Notices under subsections (d) and (e) must contain a
statement, for informational purposes only, of the location of each
property by street address, if any, or other common description of the
property other than legal description. A misstatement in the
informational statement under this subsection does not invalidate an
otherwise valid sale.
(h) The sheriff may charge an administrative fee of not more than
two hundred dollars ($200) with respect to a proceeding referred to
in subsection (b) for actual costs directly attributable to the
administration of the sale under subsection (c). The fee is:
(1) payable by the person seeking to enforce the judgment and
decree; and
(2) due at the time of filing of the praecipe;
under subsection (b). As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.118; P.L.238-2005, SEC.55 and P.L.240-2005, SEC.1;
P.L.100-2008, SEC.1; P.L.68-2010, SEC.2.
IC 32-29-7-4 Sheriff's sale; manner of sale; engagement of auctioneer
Sec. 4. (a) A sheriff shall offer to sell and sell property on
foreclosure in a manner that is reasonably likely to bring the highest
net proceeds from the sale after deducting the expenses of the offer
and sale.
(b) Upon prior petition of the debtor or any creditor involved in
the foreclosure proceedings, the court in its order of foreclosure shall
order the property sold by the sheriff through the services of an
auctioneer 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 method
of 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 court
under subsection (b). The auctioneer shall schedule the auction and
conduct the auctioneer's activities as appropriate to bring the highest
bid for the property on foreclosure. The advertising conducted by the
auctioneer is in addition to any other notice required by law.
(d) The auctioneer's fee must be a reasonable amount stated in the
court's order. However, if the sale by use of an auctioneer has not
been agreed to by the creditors in the proceedings and the sale price
is less than the amount of the judgment and the costs and expenses
necessary to the satisfaction of the judgment, the auctioneer is
entitled only to the auctioneer's advertising expenses plus one
hundred dollars ($100). The amount due the auctioneer on account
of the auctioneer's expenses and fee, if any, shall be paid as a cost of
the sale from its proceeds before the payment of any other payment
from the sale. As added by P.L.2-2002, SEC.14. Amended by P.L.167-2005, SEC.1.
IC 32-29-7-5 Waiver of time limitations
Sec. 5. The owner of the real estate subject to the issuance of
process under a judgment or decree of foreclosure may, with the
consent of the judgment holder endorsed on the judgment or decree
of foreclosure, file with the clerk of the court a waiver of the time
limitations on issuance of process set out in section 3 of this chapter.
If the owner files a waiver under this section, process shall issue
immediately. The consideration for waiver, whether or not expressed
by its terms, shall be the waiver and release by the judgment holder
of any deficiency judgment against the owner. As added by P.L.2-2002, SEC.14.
IC 32-29-7-6 Location of mortgaged real estate; jurisdiction; recordation
Sec. 6. (a) If the mortgaged real estate is located in more than one
(1) county:
(1) the court of any county the mortgaged real estate is located
in has jurisdiction of an action for the foreclosure of the
mortgage; and
(2) all the real estate shall be sold in the county where the
action is brought, unless the court orders otherwise.
(b) A judgment and decree granted by a court or a judge in an
action for the foreclosure of the mortgaged real estate shall be
recorded in the lis pendens record kept in the office of the clerk of
each county where the real estate is located, unless the judgment and
decree is filed with the clerk in the county as provided in
IC 33-32-3-2. As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.119.
IC 32-29-7-7 Redemption by owner before sheriff's sale
Sec. 7. Before the sale under this chapter, any owner or part
owner of the real estate may redeem the real estate from the
judgment by payment to the:
(1) clerk before the issuance to the sheriff of the judgment and
decree; or
(2) sheriff after the issuance to the sheriff of the judgment and
decree;
of the amount of the judgment, interest, and costs for the payment or
satisfaction of which the sale was ordered. If the owner or part owner
redeems the real estate under this section, process for the sale of the
real estate under judgment may not be issued or executed, and the
officer receiving the redemption payment shall satisfy the judgment
and vacate order of sale. However, if the real estate is redeemed by
a part owner, the part owner shall have a lien on the shares of the
other owners for their respective shares of the redemption money,
with interest at the rate of eight percent (8%) per annum, plus the
costs of redemption. The lien shall be of the same force and effect as
the judgment lien redeemed by the part owner and shall be
enforceable by appropriate legal proceedings. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8 Sheriff's sale; manner of sale
Sec. 8. In selling real estate under this chapter, the sheriff is not
required to first offer the rents and profits of the real estate or
separate portions or parcels of the real estate. The sheriff may offer
for sale the whole body of the mortgaged real estate together with
rents, issues, income, and profits of the real estate unless the court in
its judgment and order of sale has otherwise ordered. If any part of
the judgment, interest, or costs remains unsatisfied, the sheriff shall
immediately levy the residue on the other property of the defendant. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8.5 Requirements for payment of property taxes and related costs
before sheriff's sale
Sec. 8.5. (a) Before the date of a sheriff's sale of property under
section 3(c) of this chapter, the party that filed the praecipe for the
sheriff's sale shall pay the following:
(1) If a certificate of sale issued under IC 6-1.1-24 is
outstanding:
(A) the amount necessary for redemption of the property
under IC 6-1.1-25; and
(B) all delinquent property taxes, special assessments,
penalties, and interest that:
(i) are not covered by the redemption referred to in clause
(A); and
(ii) are due and owing on the property on the date of the
sheriff's sale.
(2) If subdivision (1) does not apply, all delinquent property
taxes, special assessments, penalties, and interest that are due
and owing on the property on the date of the sheriff's sale.
(b) If the payments required under subsection (a) are not made in
full by the date of the sale, the sheriff:
(1) shall cancel the sheriff's sale; and
(2) may conduct the sheriff's sale only:
(A) upon evidence that the payments required under
subsection (a) have been made in full; and
(B) after a subsequent praecipe is filed, costs are paid, and
the sheriff's sale is advertised under this chapter. As added by P.L.73-2010, SEC.8.
IC 32-29-7-9 Sheriff prohibited from purchasing real estate at sheriff's sale;
default of purchaser
Sec. 9. (a) A sheriff or an agent of the sheriff making a
foreclosure sale under this chapter may not directly or indirectly
purchase property sold by the sheriff or the sheriff's agent. If the
purchaser of property sold on foreclosure fails to immediately pay
the purchase money, the sheriff shall resell the property either on the
same day without advertisement or on a subsequent day after again
advertising in accordance with this chapter, as the judgment creditor
directs. If the amount bid at the second sale does not equal the
amount bid at the first sale, including the costs of the second sale, the
first purchaser shall be liable for:
(1) the deficiency;
(2) damages not exceeding ten percent (10%); and
(3) interest and costs;
all of which may be recovered in a court of proper jurisdiction by the
sheriff.
(b) If the property is sold, the sheriff shall pay the proceeds as
provided in IC 32-30-10-14. Every sale made under this chapter must
be without relief from valuation or appraisement laws and without
any right of redemption. As added by P.L.2-2002, SEC.14.
IC 32-29-7-10 Deed of conveyance; sheriff to deliver to purchaser and record
with county; exception to recording requirement for HUD
mortgages
Sec. 10. (a) Immediately after a foreclosure sale under this
chapter, the sheriff shall:
(1) execute and deliver to the purchaser; and
(2) except as provided in subsection (b), record with the
recorder of the county in which the premises are located;
a deed of conveyance for the premises, which must be valid to
convey all the right, title, and interest held or claimed by all of the
parties to the action and all persons claiming under them. The sheriff
shall file a return with the clerk of the court.
(b) The sheriff is not required to record the deed of conveyance
for the premises under subsection (a)(2) if the mortgage involved in
the foreclosure action resulting in the foreclosure sale under this
chapter was insured by the United States Department of Housing and
Urban Development. As added by P.L.2-2002, SEC.14. Amended by P.L.105-2009,
SEC.17. IC 32-29-7-11 Receiver; duties; owner permitted to retain possession of property
used as dwelling; limitations
Sec. 11. (a) If the court appoints a receiver of mortgaged property,
the receiver shall take possession of the mortgaged property, collect
the rents, issues, income, and profits and apply the rents, issues,
income, and profits to the payment of taxes, assessments, insurance
premiums, and repairs required in the judgment of the receiver to
preserve the security of the mortgage debt. The receiver shall
promptly file a final report with the clerk of the court and, subject to
the approval of the court, account for and pay over to the clerk,
subject to the further order of the court, the balance of income or
other proceeds that remain in the receiver's possession.
(b) If the mortgaged property is occupied as a dwelling by the
record owner of the fee simple title, the owner shall be permitted to
retain possession of the mortgaged property, rent free, until the
foreclosure sale if the owner continues to pay the taxes and special
assessments levied against the mortgaged property and if the owner,
in the judgment of the court, does not suffer waste or other damage
to the property. However, if the record owner of the fee simple title
does not pay the taxes and special assessments levied against the
mortgaged property, the owner may retain possession of that part of
the mortgaged property, not exceeding fifteen (15) acres, that is
actually occupied as a dwelling by the record owner of the fee simple
title, rent free, until the sale, if the owner does not, in the judgment
of the court, suffer waste or other damage to the property. The owner
of any crops growing on the mortgaged property at the time of the
commencement of an action for foreclosure, other than the owner of
fee simple title or the owner's assigns, may enter the property to care
for and harvest the crops at any time within one (1) year after the
filing of the foreclosure action. As added by P.L.2-2002, SEC.14.
IC 32-29-7-12 Owner's right to crops
Sec. 12. If the record owner of the fee simple title has the right
under section 11 of this chapter to retain possession of the mortgaged
premises or any part of the mortgaged premises until the foreclosure
sale, the owner may, at any time within one (1) year after the
commencement of the foreclosure action, enter the premises to care
for and harvest any crops growing at the time of the commencement
of the foreclosure action on all or part of the mortgaged premises. As added by P.L.2-2002, SEC.14.
IC 32-29-7-13 Other means of redemption excluded
Sec. 13. There may not be a redemption from the foreclosure of
a mortgage executed after June 30, 1931, on real estate except as
provided in this chapter. As added by P.L.2-2002, SEC.14. IC 32-29-7-14 Applicability
Sec. 14. The laws of Indiana in force on June 29, 1931, shall
apply to the foreclosure of any mortgage executed before June 30,
1931. As added by P.L.2-2002, SEC.14.
IC 32-29-7
Chapter 7. Foreclosure . Redemption, Sale, Right to Retain
Possession
IC 32-29-7-1 "Auctioneer"
Sec. 1. As used in this chapter, "auctioneer" means an auctioneer
licensed under IC 25-6.1. As added by P.L.2-2002, SEC.14.
IC 32-29-7-2 "Economically feasible"
Sec. 2. For the purposes of section 4(b) of this chapter, the sale of
property by the sheriff through the services of an auctioneer is
"economically feasible" if the court determines that:
(1) a reasonable probability exists that, with the use of the
services of an auctioneer, a valid and enforceable bid will be
made at a foreclosure for a sale price equal to or greater than
the amount of the judgment and the costs and expenses
necessary to its satisfaction, including the costs of the
auctioneer; and
(2) the reasonable probability would not exist without the use
of an auctioneer. As added by P.L.2-2002, SEC.14.
IC 32-29-7-3 Mortgage foreclosure; time for execution of judgment; right of
enforcement authority to file praecipe; sale by sheriff; advertising;
sheriff's fee
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 or an enforcement authority (as defined in
IC 36-7-9-2) 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.
(b) A judgment and decree in a proceeding to foreclose a
mortgage that is entered by a court having jurisdiction may be filed
with the clerk in any county as provided in IC 33-32-3-2. After the
period set forth in subsection (a) expires, a person who may enforce
the judgment and decree may file a praecipe with the clerk in any
county where the judgment and decree is filed, and the clerk shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court. However, if:
(1) a praecipe is not filed with the clerk within one hundred
eighty (180) days after the later of the dates on which:
(A) the period specified in subsection (a) expires; or
(B) the judgment and decree is filed; and
(2) the sale is not:
(A) otherwise prohibited by law;
(B) subject to a voluntary statewide foreclosure moratorium;
or
(C) subject to a written agreement that:
(i) provides for a delay in the sale of the mortgaged real
estate; and
(ii) is executed by and between the owner of the
mortgaged real estate and a party entitled to enforce the
judgment and decree;
an enforcement authority that has issued an abatement order under
IC 36-7-36-9 with respect to the mortgaged real estate may file a
praecipe with the clerk in any county where the judgment and decree
is filed. If an enforcement authority files a praecipe under this
subsection, the clerk of the county in which the praecipe is filed shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court.
(c) Upon receiving a certified judgment under subsection (b), the
sheriff shall, subject to section 4 of this chapter, sell the mortgaged
premises or as much of the mortgaged premises as necessary to
satisfy the judgment, interest, and costs at public auction at the office
of the sheriff or at another location that is reasonably likely to attract
higher competitive bids. The sheriff shall schedule the date and time
of the sheriff's sale for:
(1) a date not later than one hundred twenty (120) days after the
date on which the judgment and decree under seal of the court
are certified to the sheriff by the clerk; and
(2) a time certain between the hours of 10 a.m. and 4 p.m. on
any day of the week except Sunday.
(d) 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. At the time of placing the first advertisement
by publication, the sheriff shall also serve a copy of the written or
printed notice of sale upon each owner of the real estate. Service of
the written notice shall be made as provided in the Indiana Rules of
Trial Procedure governing service of process upon a person. The
sheriff shall charge a fee of ten dollars ($10) to one (1) owner and
three dollars ($3) to each additional owner for service of written
notice under this subsection. The fee is:
(1) a cost of the proceeding;
(2) to be collected as other costs of the proceeding are
collected; and
(3) to be deposited in the county general fund for appropriation
for operating expenses of the sheriff's department.
(e) The sheriff also shall post written or printed notices of the sale
at the door of the courthouse of each county in which the real estate
is located.
(f) If the sheriff is unable to procure the publication of a notice
within the county, the sheriff may dispense with publication. The
sheriff shall state that the sheriff was not able to procure the
publication and explain the reason why publication was not possible.
(g) Notices under subsections (d) and (e) must contain a
statement, for informational purposes only, of the location of each
property by street address, if any, or other common description of the
property other than legal description. A misstatement in the
informational statement under this subsection does not invalidate an
otherwise valid sale.
(h) The sheriff may charge an administrative fee of not more than
two hundred dollars ($200) with respect to a proceeding referred to
in subsection (b) for actual costs directly attributable to the
administration of the sale under subsection (c). The fee is:
(1) payable by the person seeking to enforce the judgment and
decree; and
(2) due at the time of filing of the praecipe;
under subsection (b). As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.118; P.L.238-2005, SEC.55 and P.L.240-2005, SEC.1;
P.L.100-2008, SEC.1; P.L.68-2010, SEC.2.
IC 32-29-7-4 Sheriff's sale; manner of sale; engagement of auctioneer
Sec. 4. (a) A sheriff shall offer to sell and sell property on
foreclosure in a manner that is reasonably likely to bring the highest
net proceeds from the sale after deducting the expenses of the offer
and sale.
(b) Upon prior petition of the debtor or any creditor involved in
the foreclosure proceedings, the court in its order of foreclosure shall
order the property sold by the sheriff through the services of an
auctioneer 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 method
of 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 court
under subsection (b). The auctioneer shall schedule the auction and
conduct the auctioneer's activities as appropriate to bring the highest
bid for the property on foreclosure. The advertising conducted by the
auctioneer is in addition to any other notice required by law.
(d) The auctioneer's fee must be a reasonable amount stated in the
court's order. However, if the sale by use of an auctioneer has not
been agreed to by the creditors in the proceedings and the sale price
is less than the amount of the judgment and the costs and expenses
necessary to the satisfaction of the judgment, the auctioneer is
entitled only to the auctioneer's advertising expenses plus one
hundred dollars ($100). The amount due the auctioneer on account
of the auctioneer's expenses and fee, if any, shall be paid as a cost of
the sale from its proceeds before the payment of any other payment
from the sale. As added by P.L.2-2002, SEC.14. Amended by P.L.167-2005, SEC.1.
IC 32-29-7-5 Waiver of time limitations
Sec. 5. The owner of the real estate subject to the issuance of
process under a judgment or decree of foreclosure may, with the
consent of the judgment holder endorsed on the judgment or decree
of foreclosure, file with the clerk of the court a waiver of the time
limitations on issuance of process set out in section 3 of this chapter.
If the owner files a waiver under this section, process shall issue
immediately. The consideration for waiver, whether or not expressed
by its terms, shall be the waiver and release by the judgment holder
of any deficiency judgment against the owner. As added by P.L.2-2002, SEC.14.
IC 32-29-7-6 Location of mortgaged real estate; jurisdiction; recordation
Sec. 6. (a) If the mortgaged real estate is located in more than one
(1) county:
(1) the court of any county the mortgaged real estate is located
in has jurisdiction of an action for the foreclosure of the
mortgage; and
(2) all the real estate shall be sold in the county where the
action is brought, unless the court orders otherwise.
(b) A judgment and decree granted by a court or a judge in an
action for the foreclosure of the mortgaged real estate shall be
recorded in the lis pendens record kept in the office of the clerk of
each county where the real estate is located, unless the judgment and
decree is filed with the clerk in the county as provided in
IC 33-32-3-2. As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.119.
IC 32-29-7-7 Redemption by owner before sheriff's sale
Sec. 7. Before the sale under this chapter, any owner or part
owner of the real estate may redeem the real estate from the
judgment by payment to the:
(1) clerk before the issuance to the sheriff of the judgment and
decree; or
(2) sheriff after the issuance to the sheriff of the judgment and
decree;
of the amount of the judgment, interest, and costs for the payment or
satisfaction of which the sale was ordered. If the owner or part owner
redeems the real estate under this section, process for the sale of the
real estate under judgment may not be issued or executed, and the
officer receiving the redemption payment shall satisfy the judgment
and vacate order of sale. However, if the real estate is redeemed by
a part owner, the part owner shall have a lien on the shares of the
other owners for their respective shares of the redemption money,
with interest at the rate of eight percent (8%) per annum, plus the
costs of redemption. The lien shall be of the same force and effect as
the judgment lien redeemed by the part owner and shall be
enforceable by appropriate legal proceedings. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8 Sheriff's sale; manner of sale
Sec. 8. In selling real estate under this chapter, the sheriff is not
required to first offer the rents and profits of the real estate or
separate portions or parcels of the real estate. The sheriff may offer
for sale the whole body of the mortgaged real estate together with
rents, issues, income, and profits of the real estate unless the court in
its judgment and order of sale has otherwise ordered. If any part of
the judgment, interest, or costs remains unsatisfied, the sheriff shall
immediately levy the residue on the other property of the defendant. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8.5 Requirements for payment of property taxes and related costs
before sheriff's sale
Sec. 8.5. (a) Before the date of a sheriff's sale of property under
section 3(c) of this chapter, the party that filed the praecipe for the
sheriff's sale shall pay the following:
(1) If a certificate of sale issued under IC 6-1.1-24 is
outstanding:
(A) the amount necessary for redemption of the property
under IC 6-1.1-25; and
(B) all delinquent property taxes, special assessments,
penalties, and interest that:
(i) are not covered by the redemption referred to in clause
(A); and
(ii) are due and owing on the property on the date of the
sheriff's sale.
(2) If subdivision (1) does not apply, all delinquent property
taxes, special assessments, penalties, and interest that are due
and owing on the property on the date of the sheriff's sale.
(b) If the payments required under subsection (a) are not made in
full by the date of the sale, the sheriff:
(1) shall cancel the sheriff's sale; and
(2) may conduct the sheriff's sale only:
(A) upon evidence that the payments required under
subsection (a) have been made in full; and
(B) after a subsequent praecipe is filed, costs are paid, and
the sheriff's sale is advertised under this chapter. As added by P.L.73-2010, SEC.8.
IC 32-29-7-9 Sheriff prohibited from purchasing real estate at sheriff's sale;
default of purchaser
Sec. 9. (a) A sheriff or an agent of the sheriff making a
foreclosure sale under this chapter may not directly or indirectly
purchase property sold by the sheriff or the sheriff's agent. If the
purchaser of property sold on foreclosure fails to immediately pay
the purchase money, the sheriff shall resell the property either on the
same day without advertisement or on a subsequent day after again
advertising in accordance with this chapter, as the judgment creditor
directs. If the amount bid at the second sale does not equal the
amount bid at the first sale, including the costs of the second sale, the
first purchaser shall be liable for:
(1) the deficiency;
(2) damages not exceeding ten percent (10%); and
(3) interest and costs;
all of which may be recovered in a court of proper jurisdiction by the
sheriff.
(b) If the property is sold, the sheriff shall pay the proceeds as
provided in IC 32-30-10-14. Every sale made under this chapter must
be without relief from valuation or appraisement laws and without
any right of redemption. As added by P.L.2-2002, SEC.14.
IC 32-29-7-10 Deed of conveyance; sheriff to deliver to purchaser and record
with county; exception to recording requirement for HUD
mortgages
Sec. 10. (a) Immediately after a foreclosure sale under this
chapter, the sheriff shall:
(1) execute and deliver to the purchaser; and
(2) except as provided in subsection (b), record with the
recorder of the county in which the premises are located;
a deed of conveyance for the premises, which must be valid to
convey all the right, title, and interest held or claimed by all of the
parties to the action and all persons claiming under them. The sheriff
shall file a return with the clerk of the court.
(b) The sheriff is not required to record the deed of conveyance
for the premises under subsection (a)(2) if the mortgage involved in
the foreclosure action resulting in the foreclosure sale under this
chapter was insured by the United States Department of Housing and
Urban Development. As added by P.L.2-2002, SEC.14. Amended by P.L.105-2009,
SEC.17. IC 32-29-7-11 Receiver; duties; owner permitted to retain possession of property
used as dwelling; limitations
Sec. 11. (a) If the court appoints a receiver of mortgaged property,
the receiver shall take possession of the mortgaged property, collect
the rents, issues, income, and profits and apply the rents, issues,
income, and profits to the payment of taxes, assessments, insurance
premiums, and repairs required in the judgment of the receiver to
preserve the security of the mortgage debt. The receiver shall
promptly file a final report with the clerk of the court and, subject to
the approval of the court, account for and pay over to the clerk,
subject to the further order of the court, the balance of income or
other proceeds that remain in the receiver's possession.
(b) If the mortgaged property is occupied as a dwelling by the
record owner of the fee simple title, the owner shall be permitted to
retain possession of the mortgaged property, rent free, until the
foreclosure sale if the owner continues to pay the taxes and special
assessments levied against the mortgaged property and if the owner,
in the judgment of the court, does not suffer waste or other damage
to the property. However, if the record owner of the fee simple title
does not pay the taxes and special assessments levied against the
mortgaged property, the owner may retain possession of that part of
the mortgaged property, not exceeding fifteen (15) acres, that is
actually occupied as a dwelling by the record owner of the fee simple
title, rent free, until the sale, if the owner does not, in the judgment
of the court, suffer waste or other damage to the property. The owner
of any crops growing on the mortgaged property at the time of the
commencement of an action for foreclosure, other than the owner of
fee simple title or the owner's assigns, may enter the property to care
for and harvest the crops at any time within one (1) year after the
filing of the foreclosure action. As added by P.L.2-2002, SEC.14.
IC 32-29-7-12 Owner's right to crops
Sec. 12. If the record owner of the fee simple title has the right
under section 11 of this chapter to retain possession of the mortgaged
premises or any part of the mortgaged premises until the foreclosure
sale, the owner may, at any time within one (1) year after the
commencement of the foreclosure action, enter the premises to care
for and harvest any crops growing at the time of the commencement
of the foreclosure action on all or part of the mortgaged premises. As added by P.L.2-2002, SEC.14.
IC 32-29-7-13 Other means of redemption excluded
Sec. 13. There may not be a redemption from the foreclosure of
a mortgage executed after June 30, 1931, on real estate except as
provided in this chapter. As added by P.L.2-2002, SEC.14. IC 32-29-7-14 Applicability
Sec. 14. The laws of Indiana in force on June 29, 1931, shall
apply to the foreclosure of any mortgage executed before June 30,
1931. As added by P.L.2-2002, SEC.14.
IC 32-29-7
Chapter 7. Foreclosure . Redemption, Sale, Right to Retain
Possession
IC 32-29-7-1 "Auctioneer"
Sec. 1. As used in this chapter, "auctioneer" means an auctioneer
licensed under IC 25-6.1. As added by P.L.2-2002, SEC.14.
IC 32-29-7-2 "Economically feasible"
Sec. 2. For the purposes of section 4(b) of this chapter, the sale of
property by the sheriff through the services of an auctioneer is
"economically feasible" if the court determines that:
(1) a reasonable probability exists that, with the use of the
services of an auctioneer, a valid and enforceable bid will be
made at a foreclosure for a sale price equal to or greater than
the amount of the judgment and the costs and expenses
necessary to its satisfaction, including the costs of the
auctioneer; and
(2) the reasonable probability would not exist without the use
of an auctioneer. As added by P.L.2-2002, SEC.14.
IC 32-29-7-3 Mortgage foreclosure; time for execution of judgment; right of
enforcement authority to file praecipe; sale by sheriff; advertising;
sheriff's fee
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 or an enforcement authority (as defined in
IC 36-7-9-2) 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.
(b) A judgment and decree in a proceeding to foreclose a
mortgage that is entered by a court having jurisdiction may be filed
with the clerk in any county as provided in IC 33-32-3-2. After the
period set forth in subsection (a) expires, a person who may enforce
the judgment and decree may file a praecipe with the clerk in any
county where the judgment and decree is filed, and the clerk shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court. However, if:
(1) a praecipe is not filed with the clerk within one hundred
eighty (180) days after the later of the dates on which:
(A) the period specified in subsection (a) expires; or
(B) the judgment and decree is filed; and
(2) the sale is not:
(A) otherwise prohibited by law;
(B) subject to a voluntary statewide foreclosure moratorium;
or
(C) subject to a written agreement that:
(i) provides for a delay in the sale of the mortgaged real
estate; and
(ii) is executed by and between the owner of the
mortgaged real estate and a party entitled to enforce the
judgment and decree;
an enforcement authority that has issued an abatement order under
IC 36-7-36-9 with respect to the mortgaged real estate may file a
praecipe with the clerk in any county where the judgment and decree
is filed. If an enforcement authority files a praecipe under this
subsection, the clerk of the county in which the praecipe is filed shall
promptly issue and certify to the sheriff of that county a copy of the
judgment and decree under the seal of the court.
(c) Upon receiving a certified judgment under subsection (b), the
sheriff shall, subject to section 4 of this chapter, sell the mortgaged
premises or as much of the mortgaged premises as necessary to
satisfy the judgment, interest, and costs at public auction at the office
of the sheriff or at another location that is reasonably likely to attract
higher competitive bids. The sheriff shall schedule the date and time
of the sheriff's sale for:
(1) a date not later than one hundred twenty (120) days after the
date on which the judgment and decree under seal of the court
are certified to the sheriff by the clerk; and
(2) a time certain between the hours of 10 a.m. and 4 p.m. on
any day of the week except Sunday.
(d) 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. At the time of placing the first advertisement
by publication, the sheriff shall also serve a copy of the written or
printed notice of sale upon each owner of the real estate. Service of
the written notice shall be made as provided in the Indiana Rules of
Trial Procedure governing service of process upon a person. The
sheriff shall charge a fee of ten dollars ($10) to one (1) owner and
three dollars ($3) to each additional owner for service of written
notice under this subsection. The fee is:
(1) a cost of the proceeding;
(2) to be collected as other costs of the proceeding are
collected; and
(3) to be deposited in the county general fund for appropriation
for operating expenses of the sheriff's department.
(e) The sheriff also shall post written or printed notices of the sale
at the door of the courthouse of each county in which the real estate
is located.
(f) If the sheriff is unable to procure the publication of a notice
within the county, the sheriff may dispense with publication. The
sheriff shall state that the sheriff was not able to procure the
publication and explain the reason why publication was not possible.
(g) Notices under subsections (d) and (e) must contain a
statement, for informational purposes only, of the location of each
property by street address, if any, or other common description of the
property other than legal description. A misstatement in the
informational statement under this subsection does not invalidate an
otherwise valid sale.
(h) The sheriff may charge an administrative fee of not more than
two hundred dollars ($200) with respect to a proceeding referred to
in subsection (b) for actual costs directly attributable to the
administration of the sale under subsection (c). The fee is:
(1) payable by the person seeking to enforce the judgment and
decree; and
(2) due at the time of filing of the praecipe;
under subsection (b). As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.118; P.L.238-2005, SEC.55 and P.L.240-2005, SEC.1;
P.L.100-2008, SEC.1; P.L.68-2010, SEC.2.
IC 32-29-7-4 Sheriff's sale; manner of sale; engagement of auctioneer
Sec. 4. (a) A sheriff shall offer to sell and sell property on
foreclosure in a manner that is reasonably likely to bring the highest
net proceeds from the sale after deducting the expenses of the offer
and sale.
(b) Upon prior petition of the debtor or any creditor involved in
the foreclosure proceedings, the court in its order of foreclosure shall
order the property sold by the sheriff through the services of an
auctioneer 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 method
of 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 court
under subsection (b). The auctioneer shall schedule the auction and
conduct the auctioneer's activities as appropriate to bring the highest
bid for the property on foreclosure. The advertising conducted by the
auctioneer is in addition to any other notice required by law.
(d) The auctioneer's fee must be a reasonable amount stated in the
court's order. However, if the sale by use of an auctioneer has not
been agreed to by the creditors in the proceedings and the sale price
is less than the amount of the judgment and the costs and expenses
necessary to the satisfaction of the judgment, the auctioneer is
entitled only to the auctioneer's advertising expenses plus one
hundred dollars ($100). The amount due the auctioneer on account
of the auctioneer's expenses and fee, if any, shall be paid as a cost of
the sale from its proceeds before the payment of any other payment
from the sale. As added by P.L.2-2002, SEC.14. Amended by P.L.167-2005, SEC.1.
IC 32-29-7-5 Waiver of time limitations
Sec. 5. The owner of the real estate subject to the issuance of
process under a judgment or decree of foreclosure may, with the
consent of the judgment holder endorsed on the judgment or decree
of foreclosure, file with the clerk of the court a waiver of the time
limitations on issuance of process set out in section 3 of this chapter.
If the owner files a waiver under this section, process shall issue
immediately. The consideration for waiver, whether or not expressed
by its terms, shall be the waiver and release by the judgment holder
of any deficiency judgment against the owner. As added by P.L.2-2002, SEC.14.
IC 32-29-7-6 Location of mortgaged real estate; jurisdiction; recordation
Sec. 6. (a) If the mortgaged real estate is located in more than one
(1) county:
(1) the court of any county the mortgaged real estate is located
in has jurisdiction of an action for the foreclosure of the
mortgage; and
(2) all the real estate shall be sold in the county where the
action is brought, unless the court orders otherwise.
(b) A judgment and decree granted by a court or a judge in an
action for the foreclosure of the mortgaged real estate shall be
recorded in the lis pendens record kept in the office of the clerk of
each county where the real estate is located, unless the judgment and
decree is filed with the clerk in the county as provided in
IC 33-32-3-2. As added by P.L.2-2002, SEC.14. Amended by P.L.98-2004,
SEC.119.
IC 32-29-7-7 Redemption by owner before sheriff's sale
Sec. 7. Before the sale under this chapter, any owner or part
owner of the real estate may redeem the real estate from the
judgment by payment to the:
(1) clerk before the issuance to the sheriff of the judgment and
decree; or
(2) sheriff after the issuance to the sheriff of the judgment and
decree;
of the amount of the judgment, interest, and costs for the payment or
satisfaction of which the sale was ordered. If the owner or part owner
redeems the real estate under this section, process for the sale of the
real estate under judgment may not be issued or executed, and the
officer receiving the redemption payment shall satisfy the judgment
and vacate order of sale. However, if the real estate is redeemed by
a part owner, the part owner shall have a lien on the shares of the
other owners for their respective shares of the redemption money,
with interest at the rate of eight percent (8%) per annum, plus the
costs of redemption. The lien shall be of the same force and effect as
the judgment lien redeemed by the part owner and shall be
enforceable by appropriate legal proceedings. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8 Sheriff's sale; manner of sale
Sec. 8. In selling real estate under this chapter, the sheriff is not
required to first offer the rents and profits of the real estate or
separate portions or parcels of the real estate. The sheriff may offer
for sale the whole body of the mortgaged real estate together with
rents, issues, income, and profits of the real estate unless the court in
its judgment and order of sale has otherwise ordered. If any part of
the judgment, interest, or costs remains unsatisfied, the sheriff shall
immediately levy the residue on the other property of the defendant. As added by P.L.2-2002, SEC.14.
IC 32-29-7-8.5 Requirements for payment of property taxes and related costs
before sheriff's sale
Sec. 8.5. (a) Before the date of a sheriff's sale of property under
section 3(c) of this chapter, the party that filed the praecipe for the
sheriff's sale shall pay the following:
(1) If a certificate of sale issued under IC 6-1.1-24 is
outstanding:
(A) the amount necessary for redemption of the property
under IC 6-1.1-25; and
(B) all delinquent property taxes, special assessments,
penalties, and interest that:
(i) are not covered by the redemption referred to in clause
(A); and
(ii) are due and owing on the property on the date of the
sheriff's sale.
(2) If subdivision (1) does not apply, all delinquent property
taxes, special assessments, penalties, and interest that are due
and owing on the property on the date of the sheriff's sale.
(b) If the payments required under subsection (a) are not made in
full by the date of the sale, the sheriff:
(1) shall cancel the sheriff's sale; and
(2) may conduct the sheriff's sale only:
(A) upon evidence that the payments required under
subsection (a) have been made in full; and
(B) after a subsequent praecipe is filed, costs are paid, and
the sheriff's sale is advertised under this chapter. As added by P.L.73-2010, SEC.8.
IC 32-29-7-9 Sheriff prohibited from purchasing real estate at sheriff's sale;
default of purchaser
Sec. 9. (a) A sheriff or an agent of the sheriff making a
foreclosure sale under this chapter may not directly or indirectly
purchase property sold by the sheriff or the sheriff's agent. If the
purchaser of property sold on foreclosure fails to immediately pay
the purchase money, the sheriff shall resell the property either on the
same day without advertisement or on a subsequent day after again
advertising in accordance with this chapter, as the judgment creditor
directs. If the amount bid at the second sale does not equal the
amount bid at the first sale, including the costs of the second sale, the
first purchaser shall be liable for:
(1) the deficiency;
(2) damages not exceeding ten percent (10%); and
(3) interest and costs;
all of which may be recovered in a court of proper jurisdiction by the
sheriff.
(b) If the property is sold, the sheriff shall pay the proceeds as
provided in IC 32-30-10-14. Every sale made under this chapter must
be without relief from valuation or appraisement laws and without
any right of redemption. As added by P.L.2-2002, SEC.14.
IC 32-29-7-10 Deed of conveyance; sheriff to deliver to purchaser and record
with county; exception to recording requirement for HUD
mortgages
Sec. 10. (a) Immediately after a foreclosure sale under this
chapter, the sheriff shall:
(1) execute and deliver to the purchaser; and
(2) except as provided in subsection (b), record with the
recorder of the county in which the premises are located;
a deed of conveyance for the premises, which must be valid to
convey all the right, title, and interest held or claimed by all of the
parties to the action and all persons claiming under them. The sheriff
shall file a return with the clerk of the court.
(b) The sheriff is not required to record the deed of conveyance
for the premises under subsection (a)(2) if the mortgage involved in
the foreclosure action resulting in the foreclosure sale under this
chapter was insured by the United States Department of Housing and
Urban Development. As added by P.L.2-2002, SEC.14. Amended by P.L.105-2009,
SEC.17. IC 32-29-7-11 Receiver; duties; owner permitted to retain possession of property
used as dwelling; limitations
Sec. 11. (a) If the court appoints a receiver of mortgaged property,
the receiver shall take possession of the mortgaged property, collect
the rents, issues, income, and profits and apply the rents, issues,
income, and profits to the payment of taxes, assessments, insurance
premiums, and repairs required in the judgment of the receiver to
preserve the security of the mortgage debt. The receiver shall
promptly file a final report with the clerk of the court and, subject to
the approval of the court, account for and pay over to the clerk,
subject to the further order of the court, the balance of income or
other proceeds that remain in the receiver's possession.
(b) If the mortgaged property is occupied as a dwelling by the
record owner of the fee simple title, the owner shall be permitted to
retain possession of the mortgaged property, rent free, until the
foreclosure sale if the owner continues to pay the taxes and special
assessments levied against the mortgaged property and if the owner,
in the judgment of the court, does not suffer waste or other damage
to the property. However, if the record owner of the fee simple title
does not pay the taxes and special assessments levied against the
mortgaged property, the owner may retain possession of that part of
the mortgaged property, not exceeding fifteen (15) acres, that is
actually occupied as a dwelling by the record owner of the fee simple
title, rent free, until the sale, if the owner does not, in the judgment
of the court, suffer waste or other damage to the property. The owner
of any crops growing on the mortgaged property at the time of the
commencement of an action for foreclosure, other than the owner of
fee simple title or the owner's assigns, may enter the property to care
for and harvest the crops at any time within one (1) year after the
filing of the foreclosure action. As added by P.L.2-2002, SEC.14.
IC 32-29-7-12 Owner's right to crops
Sec. 12. If the record owner of the fee simple title has the right
under section 11 of this chapter to retain possession of the mortgaged
premises or any part of the mortgaged premises until the foreclosure
sale, the owner may, at any time within one (1) year after the
commencement of the foreclosure action, enter the premises to care
for and harvest any crops growing at the time of the commencement
of the foreclosure action on all or part of the mortgaged premises. As added by P.L.2-2002, SEC.14.
IC 32-29-7-13 Other means of redemption excluded
Sec. 13. There may not be a redemption from the foreclosure of
a mortgage executed after June 30, 1931, on real estate except as
provided in this chapter. As added by P.L.2-2002, SEC.14. IC 32-29-7-14 Applicability
Sec. 14. The laws of Indiana in force on June 29, 1931, shall
apply to the foreclosure of any mortgage executed before June 30,
1931. As added by P.L.2-2002, SEC.14.
