Indiana Foreclosure Prevention Efforts

For 2009, Indiana ranked 18th among all states in foreclosure rate, a drop of 9.87% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

In 2007 Indiana confronted the growing problem of foreclosures in the state by establishing the Indiana Foreclosure Prevention Network (IFPN)–a private and public partnership with dozens of participants from the AARP to Wells Fargo.

Prior to contacting a counselor in the network, please gather the following:
•    Mortgage account number and servicer name
•    Description of financial hardship
•    Documentation of income
•    Breakdown of expenses

To reach a certified foreclosure specialist either fill out this form (clicking on “Assessment” in the next page) or call toll free 877-GET-HOPE (877-438-4673) seven days a week, from 8 AM to 8 PM.  All phone calls are confidential.

You can also go through an on-line workshop here (clicking on “Workshop” in the next page).

The network’s mailing address is:

Indiana Housing and Community Development Authority
ATTN: Indiana Foreclosure Prevention Network
30 South Meridian Street, Suite 1000
Indianapolis, IN  46204

The IFPN has been staging a series of events around the state that allow borrowers to speak directly with lenders. The website lists all pending events.

Another resource is the list of Indiana counselors approved by the U.S. Department of Housing and Urban Development.

Indiana is a state of judicial foreclosures. The process has to make its way through the courts. As of July 1, 2009, the law changed to require Hoosiers behind on their mortgage to receive two notices from their servicers:

• The first lets borrowers know that they are in default and if the situation continues for another 30 days, the lender could start foreclosure proceedings.
• The second is when the lender actually files a foreclosure with the court. It lets the homeowner know that he or she may be entitled to a court-ordered conference that could lead to a settlement that would forestall the foreclosure.

According to Lt. Governor Becky Skillman, “Getting help – and getting it early – is critically important. The sooner homeowners recognize they may be at risk and seek help, the more options they have to avoid foreclosure.”

The state is actively engaged in recruiting volunteer lawyers to help homeowners facing foreclosure. Those who want to assist should click here for a schedule of training sessions. Borrowers who need low cost or free legal assistance should contact the Indiana Pro Bono Commission.

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.