BluegrassForeclosure.com

If you are attempting to foreclose a house in Indiana, you now have to proceed to mediation before anything can further can be done, or before the home can go to sheriff’s sale.  States are attempting to come up with different methods to force the lenders and borrowers to the table to try and work something out.  But if neither party is willing or able to work it out, then it seems this is an extra, futile step.

By the time a home goes into foreclosure, the borrower doesn’t have any money to even try to catch up the loan.  The lender is usually unwilling to even consider a lower interest rate, plus, if the borrower has no money, they must be willing to put all of the arrears on the back end of the loan, to even give the borrower a chance to get current on the loan.

Then, assuming all of that happens, the recidivism rate is still pretty high.  So the lender has gone the extra step by giving a better interest, tacked on the arrears to the end of the loan, and 6 months down the road, the foreclosure just picks right back up.

The best way is for the lenders and borrowers to get together at the 60 – 90 day delinquent mark.  It’s at that point that they will have the most opportunity to work something out that is amenable to each.

For a recap on some other new laws, click.