In an effort to get a handle on the ever increasing foreclosure cases, the Marion County (Indianapolis) circuit and superior courts in Indiana passed a local rule, LR49-TR 85 Rule 231, effective in March, 2009, that requires a settlement conference in all owner occupied foreclosure cases between the primary lender and primary borrower. The provisions of the rule are as follows:
 
- An automatic stay of 90 days shall be in effect once the case is filed, except for proceeding with service, unless the conference is vacated for good cause.

- Once service has been established, the court will send out the settlement conference notice to the lender and borrower; The borrower has to affirmatively respond to the court within 15 days of receipt of the notice that they will be attending the hearing. If the court does not receive the confirmation, the conference will be waived.

- Both the lender and a representative with settlement authority, as well as the borrower, may attend the conference in person or by phone.

- The borrower must provide the lender's counsel with a borrower's Financial Information Form 7 days prior to the conference.

- Counsel for the lender needs to report the results of the conference, in writing, to the court within 5 days of the conference. If no conference is held, lender's counsel must file a statement of why it did not take place.

- If a conference is not held within 90 days after service is established, or if the borrower does not appear for the conference, the case will proceed with foreclosure.

Please note that this rule will initially delay foreclosure proceedings, unless the settlement conference is waived. Additionally upon notice, the lender will need to make a loan officer telephonically available for each conference. Finally, the Indiana house and senate are considering similar versions of this rule, which if passed, will make this a statewide requirement.

If you have any questions on this information, please contact Mr. Zarksis V. Daroga, Esq. Zarksis is an associate in the Real Estate Default Group of the Cincinnati office focused on foreclosure services for Weltman, Weinberg & Reis Co., L.P.A. He can be reached at (513) 333-4075 or via e-mail at zdaroga@weltman.com.

Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A., an organization providing comprehensive creditor representation.  The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship.  Contact any of our offices or visit our website at realestatedefaultgroup.com for more real estate related information, company facts and attorney profiles. (c)2009